Soaring Loonie Expected To Boost Snowbird Travel
It looks like Canadians are going to do their part to make the 2007/2008 snowbird season in the U.S. sunbelt a big one. Following is a press release issued by the Travel Health Insurance Association of Canada (THIA).
TORONTO, ONTARIO– A record snowbird exodus to the United States this fall and winter is being anticipated by Canada’s travel health insurers on the continuing strength of the loonie, which has rebounded in value against the U.S. dollar by 50 percent in the last five years. (One Canadian dollar bought 62 U.S. cents in January 2002. It now buys close to 94 U.S. cents).
According to the Travel Health Insurance Association of Canada, which represents travel insurers and their allied services, Canadians travelling to the United States have regained much of their purchasing power, hitting levels they haven’t seen for 30 years.
“This is especially advantageous for snowbirds, who spend between one and six months in the sunbelt states purchasing groceries, clothing, gasoline, accommodation and recreational services, as well as paying taxes and in many cases buying retirement properties,” said Juliann Martyniuk, president of THIA.
The strong dollar also coincides with a mounting resurgence of Canadian travel to the United States, she noted. According to Statistics Canada, Canadian overnight travel to the U.S. rose 7.6 percent in 2006, reaching the 16 million mark, the highest level since 1993. And though the greatest number of overnight trips was made to New York State (2.6 million), the second greatest number was made to Florida (2.1 million) where Canadians stayed considerably longer per visit, and where they spent a great deal more money ($2.4 billion compared to $770 million in New York).
According to other surveys by the Conference Board of Canada (CBoC), U.S.- bound pleasure trips by Canadians increased by 16.7 percent to 1.8 million between November 2006 and January 2007 (typical snowbird departure dates) compared to the comparable period a year earlier. The CBoC projects that there are more than 650.000 Canadian snowbirds (55 and older, traveling for at least 30 consecutive days) now taking annual trips to the sunbelt. Surveys have shown that close to 85 percent of them buy private travel health insurance to cover themselves while out of the country for emergency medical services not paid for by their provincial health plans.
Though the strengthened loonie can be expected to offset some of the medical cost increases generated by Canadians treated in American hospitals, it will not completely keep pace with the relentless rise in U.S. health care costs which rose about 8 percent in 2006. And though average travel insurance premiums have remained relatively stable since 2004, even dipping slightly in 2006, travelers should not expect any significant changes in premium levels.
“That does not mean,” said Ms. Martyniuk, “that travelers should not shop around for the best deal they can get. There are hundreds of travel insurance products available at reasonable cost. The key is to find the right one for the traveller’s individual needs and health profile.”
About THIA. THIA is the national organization representing travel insurers, underwriters, re-insurers, emergency assistance companies, air ambulance companies and allied services. Its website is http://www.thiaonline.com/.
