The thought of the Canadian dollar dropping to an all-time low – and expected to keep plunging – has bred some worrisome consumers and industries.
Now worth less than three Timbits at Tim Hortons – and soon maybe even less than two – it seems as though Canadians are expecting the next “Y2K.”
It’s easy to be bogged down with all of the negative consequences the falling loonie means for Canadian consumers, considering a cauliflower head goes for almost nine dollars, instead of the usual $3.50. For some, the skyrocketing prices of imported fruits and veggies means their New Year’s resolution to eat healthy, might be unattainable.
That being said, let’s not forget about some industries like, Ottawa’s tourism, which greatly benefits from the falling loonie. With Ottawa 2017 – a celebration of Canada’s 150th anniversary of Confederation – just around the corner, the city is in a great position to attract incoming flows of tourists for the next two years.
Surrounded by touristy hubs such as, Parliament Hill, the Rideau Canal, Sparks Street and museums like the Canadian Museum of Nature, Centretown is one of the many places in Ottawa that will benefit from the sinking dollar.
Earlier this month, Dick Brown, president of Ottawa Tourism, met with Ottawa Centre MP, Catherine McKenna, to discuss several ways the federal government can help improve the local tourism scene before Canada turns 150.
Recently, Brown has gone public in expressing his top priorities for the city to the media. Among his list of recommendations, he is quoted looking to shift the responsibilities of Winterlude and Canada Day from the Department of Canadian Heritage to the National Capital Commission. Brown is also quoted pushing to build an entertainment complex within the redevelopment of LeBreton Flats – which includes an arena.
Moving the Senators to LeBreton Flats could bring more business to the downtown core. The proposed location will provide better access for fans and more options for entertainment than the current Canadian Tire Centre in Kanata.
These plans sound promising as the loonie continues to drop. Canadians are expected to vacation at home instead of going abroad – or “stay-cation” as it’s known. The falling dollar is good news not only for Canadians but for potential American tourists as well, as many millions of them are only a stone’s throw away from the border. That means they can get a bigger bang for their buck when vacationing in the nation’s capital or other cities close to the Canada-U.S. boundary.
Though the rising costs of food might set some local eateries into panic mode, these costs are normally offset by the business generated from higher volumes of Canadians “stay-cationing” and visiting American tourists.
This is, of course, not an overnight phenomenon. Canadians who have already made vacation plans well in advance, will likely still go. But despite the anxieties of the dollar slipping below the 60 cents mark, the future of Ottawa’s tourism industry looks promising.