'You are our pot of gold'

Canadian visitors have time and money to spend in the Flathead Valley, and they really like it here.

That's according to University of Lethbridge economics instructor Donna Townley, who talked about the Canadian business boom at Tuesday's monthly Kalispell Chamber of Commerce luncheon.

A specialist in Canadian shopping and travel patterns in the United States, Townley painted a detailed picture of the Canadians who are coming here in droves to shop and partake of the Flathead's diverse recreational amenities.

"We're a different breed ... you have something we want," Townley said, outlining the key reasons why more and more Canadians are traveling to the Flathead Valley. That "something" includes this area's trees, mountains and lakes.

"We've lived in Lethbridge 15 years and I can't grow a tree," she said, showing slides of austere Canadian landscape and Calgary's cityscape. "You are our pot of gold at the end of our week."

More than 1.6 million Canadians live within a five-hour traveling distance from the Flathead, and their high household income equates to lots of disposable income.

The average household income in Calgary is $91,570; in Lethbridge it's $73,387. With Canadian beer at $24.99 a 12-pack and retail prices generally 20 percent higher in Canada than in the U.S., it makes sense to cross the border to go shopping, she said.

But Canadian shoppers are very value-oriented and they "count pennies," Townley said.

"Canadians want to spend their extra income on luxury items. We save on groceries and gas," she said, noting that Canadians are drawn to box stores such as Costco and Walmart.

But when the Kalispell Boat Show rolls around, Canadians are willing to put their money down on the newest watercraft.

Canadians also are looking for good value when they eat at local restaurants. For Townsley and her family, who have a vacation home in Whitefish, HuHot Mongolian Grill in Kalispell is their restaurant of choice, and she has seen Canadian hockey teams eating there as well.

"If you provide good service, Canadians go home and tell everybody else," she said. "There's a tremendous amount of verbal publicity. Every hockey dad knows where Vann's is."

Canadian women tend to shop at department stores such as JC Penney and Herberger's, while their children prefer Target and Walmart for toys.

Smaller businesses can compete by finding a product niche to attract Canadians - something they can't get anywhere else - and offering coupons and sales to bring their northerly neighbors through the door, she said.

Canadians can take $400 worth of goods back with them tax-free if they stay in the U.S. for 48 hours. Passports are now scanned to clock the amount of time being spent here.

Canadians also have more time to shop than many of their American counterparts. They get three weeks of paid vacation after four years. School is released at 11:40 a.m. on Friday, allowing Canadians to use Friday as a travel day, Townley explained.

They get 10 statutory holidays annually, and most retailers in Canada - Costco included - are closed on those 10 holidays, she said.

Townley urged Kalispell and Whitefish business leaders to "become a united front" to tackle Great Falls' massive marketing campaign that has begun siphoning Canadians away from the Flathead.

"They're spending lots of money and they're trying to get your market share," she said.

She also urged Kalispell and Whitefish to work together to use their ice-rink facilities to lure bigger hockey tournaments to the Flathead. Whitefish alone doesn't have enough ice time to accommodate the larger venues, she said.

Challenges remain in accommodating Canadians who want to use debit cards for purchases, though NXGEN Payment Services' new Canada Certified initiative is making great strides in helping local business owners accept Canadian debit cards.

The integrated program enables businesses to accept Canadian Interac PIN debit cards, print out credit-card transactions in Canadian dollars and promote participating retailers to consumers in the key Canadian markets of Lethbridge and Cranbrook.

Debit cards are popular among Canadians. And in Canada debit cards don't require a sponsor such as MasterCard or Visa, which complicates their use in the U.S., she said.

"The Canadian mentality is they don't want to charge it and accrue debt," she said.

Townley encouraged local banks to better accommodate Canadians who want to cash bank drafts. A bank draft in Canada is considered cash because banks won't give out large amounts of cash, she said, adding that it's an insult when some American banks put a hold those drafts.

Above all else, roll out the welcome mat for Canadians, Townley encouraged. That can be as simple as flying the Canadian flag at local businesses and treating all customers equally.

"It's up to you to be ready for Canadian business," she advised.

Features editor Lynnette Hintze may be reached at 758-4421 or by email at lhintze@dailyinterlake.com.