Canadians Staying Close to Home for Summer Vacations, According to Scotiabank Study

Three-year Trend Suggests Canadians Continue to Support the Local Tourism Industry

TORONTO, June 27 /CNW/ - One-half of Canadians are planning to take a vacation this summer with Canada as the destination of choice, according to Scotiabank's third-annual study on Canadians' summer travel intentions.

"Staying closer to home is good news for Canada's travel and tourism industry that depends on domestic travellers for the vast majority of its revenue dollars," said Adrienne Warren, Senior Economist, Scotiabank. "The rise in the Canadian-U.S. exchange rate to a 30-year high appears to have had little discernible impact on the summer holiday plans of Canadians."

According to the study, 51 per cent of Canadian travellers plan to vacation within the country's borders. Quebec (12 per cent), Ontario (11 per cent), British Columbia (10 per cent) and Alberta (five per cent) continue to be the biggest draws for Canadians.

The study also reveals that the popular destination for many Canadians is their own backyards. Among Canadians who like to travel in their home provinces, Quebecers lead the way, with 38 per cent choosing to travel in Quebec. Meanwhile 29 per cent of B.C. travellers plan to vacation in both B.C. and Alberta equally, and 21 per cent of Ontarians will travel in Ontario. As for international destinations, 16 per cent say they are planning to visit the U.S. and seven per cent say they are planning a European vacation.

"With high gas prices and an abundance of prime domestic tourism destinations, many Canadians are again choosing to stay closer to home. Uncertainty related to border documentation requirements with our American neighbours may also be a factor slowing southbound traffic," said Ms. Warren.

The study also shows that overall summer vacation spending remains steady at around $2,600. However compared to last year, decreases in intended spending can be seen in entertainment and sight-seeing, down $131 to $425, accommodations down $129 to $706, and meals and beverages down $91 to $401.

"Employment conditions remain healthy across the country, but have moderated somewhat from last year's red-hot performance. Combined with high gas prices, many Canadians are finding their travel dollar stretches further at home," added Ms. Warren.

As for how Canadians plan to pay for their holiday, the majority of travellers will use their credit cards (61 per cent) to pay for items such as hotels, meals and entertainment, while almost half will use cash (47 per cent).

Decima Research conducted this national omnibus telephone poll (teleVox) on behalf of Scotiabank between April 19, 2007 and May 7, 2007. Overall results are based on a randomly selected sample of 3,061 English and French-speaking Canadian adults aged 18 years and older. A random probability sample of this size delivers results with a statistical margin of error of +/-1.8 percentage points, 19 times out of 20. Travel results are based on a randomly selected sample of 1,458 English and French-speaking Canadian adults aged 18 years and older who intend to take a leisure trip between late April and the end of August 2007. A random probability sample of this size delivers results with a statistical margin of error of +/-2.6 percentage points, 19 times out of 20. The margin of error will be larger within subgroupings of the survey sample. Data have been weighted to reflect a representation of the gender, age and regional distribution in Canada.

Scotiabank is one of North America's premier financial institutions and Canada's most international bank. With more than 58,000 employees, Scotiabank Group and its affiliates serve approximately 12 million customers in some 50 countries around the world. Scotiabank offers a diverse range of products and services including personal, commercial, corporate and investment banking. With $412 billion in assets (as at April 30, 2007), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.