US slowdown will affect Canadian business travel

Scotiabank, one of the biggest financial institutions in Canada, has warned that Canadian business travel can’t help but be influenced by the economic downturn in the United States. A Scotiabank senior economist said that the Canadian markets would continue to grow, but not at the rate expected before the financial slide in the United States.

“We have already seen some pressure from the high Canadian dollar, at least in terms of U.S. travel to Canada,” said economist Adrienne Warren. “In terms of the travel industry that probably means higher fuel costs, higher air fares. We saw some announcements today from Air Canada and WestJet, passing on higher prices. You can carry it for so long, but eventually these prices will begin to creep into restaurant prices, hotel prices.”

Canada is a big country, and different regions will react differently to what’s happening in the US. Ontario, with all its cross border trade will feel the hit more than would the western province of Alberta, which relies on its own rich commodities like oil to fuel its economy and has more ties with Asian countries across the Atlantic.