Canadian exchange: 'You be ready, because we're coming'

The Flathead Valley has been restored as a prime destination for recreation- and bargain-seeking Canadians, and local businesses can and should do more to ensure the trend will last, according to a panel of speakers at a seminar Friday in Kalispell.

The Building Bridges to Canada seminar filled the main hall in the Flathead Valley Community College’s Arts and Technology Building with business people interested in the dynamics of Canadian visitation.

In August 2001, the Canadian dollar was worth just 62 cents, and around that time, there was a noticeable decline in Canadian visitation.

But the Canadian dollar has rallied, the resource-rich provinces of Alberta and British Columbia have maintained healthy economies, and there has been an obvious increase in Canadian visitors to the valley.

Dan Graves, the president and chief executive of Winter Sports Inc., recently told a Flathead Valley group that Canadians make up 25 to 28 percent of  Whitefish Mountain Resort visitors.

Donna Townley, an economics professor from the University of Lethbridge, led off the forum Friday, explaining why Canadians tend to gravitate to the Flathead Valley.

“You have things that we want here,” she said, referring to recreation and destination attractions that stand out over other parts of the state.

“I fell in love with the valley in 2000 and I’ve been coming back ever since,” said Townley, who added that her family travels to the valley nearly every weekend from April through October.

On her best trips, Townley said she can get to the Flathead from Alberta in a few hours.

“We are closer than you think,” she said, later adding “and there’s a lot of us who come.”

Besides the Flathead Valley’s attractions, the main driver behind the Canadian surge is sheer economics.

Townley said the Canadian dollar basically is on par with the dollar, average household incomes are higher in the Canadian provinces, and prices for goods and services are markedly less expensive in Montana.

“We love to shop,” said Townley, adding that Canadians pay on average 20 percent higher retail costs.

For some items, the savings can be much greater in Montana.

She cited a dishwasher that cost $1,299 in Canada and just $599 in Montana. A case of beer in Canada for $24.99 can be found in Montana for $12.99. Canadians save about $20 in filling up a gas tank in Montana.

And Canadians can bring home $400 per person, tax free, after a stay of at least 48 hours on the south side of the border.

“They are coming all the way from Saskatchewan because of the prices,” she said.

With rising gas prices in Canada, it’s likely Canadian travelers will prefer closer destinations such as Montana this summer.

“You be ready, because we’re coming,” she said. “We don’t want to spend our money on gas.”

Kim Morisaki of Montana West Economic Development mentioned that Flathead Valley hospitals and medical providers are seeing growing numbers of Canadians coming for elective procedures and treatment.

She described the valley as a “destination for medical tourism.”

Businesses should not be reluctant to take Canadian bills, said Jim Ness of Glacier Bank, the seminar’s lead sponsor.

“Even if it looks a little different, it still has value ... you shouldn’t be afraid of that Canadian $100 bill,” Ness said.

At the current exchange rate, that bill would currently convert to anywhere from $96.72 to $112.90 depending on a variety of factors.

It depends on different exchange vendors used by banks, constantly changing currency markets and the timing of exchange rates being established.

Townley contended that the Canadian dollar will remain relatively stable or stronger because it is a commodity currency and is driven by commodity prices. When the price of oil goes up, for example, so does the value of the Canadian dollar.

Canadian coins, however, are not worth much for local exchange. For a variety of reasons, the loonie and other coins can be discounted as much 65 percent in Montana, Ness said.

Local businesses should consider upgrading their card swipe technology to be compatible with Canadian debit cards, said Guiseppe Caltabiano, president of NXGen Payment Services of Whitefish.

He explained “dynamic currency conversion” technology and networks that make card swipe systems compatible with Canadian debit cards and other currencies.

The seminar concluded with presentations on new media marketing and leveraging advertising dollars in Canada.

Reporter Jim Mann may be reached at 758-4407 or by email at jmann@dailyinterlake.com.