Spending abroad raises travel deficit

Canadians travelling to other countries pushed the international travel deficit to a record level.

A jump in spending by Canadians travelling outside the country pushed the international travel deficit to a record $3.5 billion in the second quarter of this year, Statistics Canada reported Friday.

The deficit was up from $464 million in the previous quarter and reached the highest level since the federal agency began keeping records in 1972.

Canadians spent $7.5 billion abroad between April and June, up 5.9 per cent from the first quarter -- the biggest increase since the fourth quarter of 2007.

"In contrast, spending by foreign travellers in Canada decreased 1.1 per cent to $4 billion from the first quarter, when Vancouver hosted the Winter Olympics," the agency said.

Spending by Canadian travellers to the U.S. jumped 5.7 per cent in the quarter, to $4.5 billion, as Canadians took five million overnight trips south of the border -- an increase of 3.2 per cent.

Americans did not return the favour: Spending by U.S. travellers dropped 1.6 per cent from the first quarter to $1.7 billion -- the lowest spending level since the third quarter of 1997, the agency said, and the sixth consecutive quarter where American spending in Canada was under $1.8 billion. Americans also made fewer trips to Canada in the second quarter, down 2.1 per cent to 2.8 million.

Canada's travel deficit with overseas countries grew by $194 million to $781 million in the second quarter, the agency said.