The strong Canadian dollar has brought flocks of Canadians and their pastel-hued currency south of the border and into Hi-Line retailers like Cyr's Big Sky Images art studio at the Havre Holiday Village Mall. The Canadians love shopping in Havre because their money has gained so much purchasing power in the United States.
For the first time since Jimmy Carter was in the White House, the Canadian dollar, commonly known as the "loonie," is worth roughly the same as a U.S. dollar. The loonie, nicknamed for the common loon pictured on the face of the Canadian dollar coin, exceeded the greenback's value for the first time in late September. It has been trading at or near par ever since then. The loonie's rise represents a stunning turnaround from just five years ago, when it was worth as little as 60 cents.
"It's been a real boost," Cyr said. "I mean, talking to other merchants in the mall, they're tickled pink."
At the Havre Sears store, manager Kemi Velk said one Canadian shopper recently bought two riding lawnmowers, declaring that they were half the price of what he would have paid in Canada.
"We sell a lot of appliances to Canadians. The shoppers say if you pay $800 for a stove here, it's $1,600 in Canada," Velk said.
She didn't know whether the exchange rate was the only reason for the price differential or whether other factors, such as the Canadian Goods and Services Tax or provincial sales taxes, factored into the higher prices in Canada.
"But the Canadians are certainly wondering why things are so much cheaper here," Velk said.
Conversely, Americans who travel to Canada are finding that their money doesn't go as far as it once did. During a recent moose hunt to British Columbia, Cyr and a hunting partner stopped for lunch and McDonald's. They were shocked when their bill for a fast-food lunch set them back $20.
Experts say rising prices for commodities tend to lift the currencies of commodity-producing countries such as Canada, which is the top exporter of crude oil to the United States. Likewise, the value of the U.S. dollar has fallen in the wake of trouble in the housing sector, said Carey Hester, senior international trade officer from the Montana Department of Commerce.
Conversely, the loonie's rise and the greenback's fall benefits U.S. manufacturers who export to Canada, Hester said.
Montana exports have been trending upward as the loonie's value has risen. In August, Montana exports to Canada totaled $358 million compared to $288 million in August 2006, a 24 percent increase, Hester said. Some of Montana's biggest exports to Canada include refined oils, cement, chemicals and other building materials.
Mike Baugh, president of Darcova Inc., a Billings-based manufacturer of gaskets and seals used in the oil industry, said sales to Canada have been strong. But he wasn't sure to what extent the exchange rate has affected sales.
"The price of oil has gone up, so we've seen an increase in business overall," Baugh said. He said sales to Canada represent about 15 percent of Darcova's business.
As snow begins to dust the mountains in northwestern Montana, Donnie Clapp, marketing director for Whitefish Mountain Resort, expects to see plenty of Canadians rolling through town this winter for skiing.
"Whitefish Mountain and the town itself have always been really popular with Canadians," Clapp said. "They're really nice people and it's fun to hang out with them. They seem to add to the fun, and they like the laidback atmosphere of Whitefish."
Downhill Riders Ski Tour Co. of Edmonton, Alberta, has booked a trip to Whitefish Mountain over the New Year's holiday. It's the tour group's first visit to Whitefish since 2001. Tammy DuChene, general manager of Downhill Riders, said the exchange rate was one of several reasons for the decline in visits to the U.S. several years ago.
"The currency was definitely a factor," DuChene said. "When the Canadian dollar was lower we couldn't compete on price."
But concerns over national security also put a damper on border crossings, she said.
"We stopped going to Whitefish a few years ago because after 9/11 it got so hard to cross the border," Duchene said. This year, everybody who boards the Downhill Riders bus for Whitefish must carry a passport, she said.
Doug Wales, marketing director for Bridger Bowl Ski Area near Bozeman, also expects to see more Canadians this winter.
"No doubt the par rate will make for much better traffic from that region," Wales said.
During the early '90s, Bridger Bowl hosted many skiers from Saskatchewan and Alberta, Wales said. But Canadian visits fell to a trickle during the early part of the 21st century as the Canadian dollar weakened. Today, most of Bridger Bowl's out-of-state visitors come from North Dakota and Minnesota, he said. But the winter of 2007 could be the beginning of a new trend, he said.
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