During the past year, the Canadian dollar has fluctuated from between US$0.84 and US$1.09. The recent rise in the Canadian dollar against the U.S. greenback could have significant implications for the B.C. tourism industry, which traditionally relies on U.S. visitors. That's because Canada has recently gotten a lot more expensive for people who have to convert their American currency into Canadian dollars.

Dave Hobden, an economist with Credit Union Central of British Columbia, told the Georgia Straight that for every 15-percent increase in the Canadian dollar against the U.S. dollar, there is a drop in tourism of approximately one to two percent. He said that he would expect B.C. ski resorts to "take a hit" from the rising Canadian dollar, but added that the ski conditions are probably a more important factor.

Visits to ski areas in B.C. and Yukon were down in 2006-07 from the previous winter, according to the Canadian Ski Council, which tracked the numbers at 45 resorts. Last winter, there were 5,214,000 visits compared with 5,773,000 the year before. Part of the reason was the shorter skiing season in B.C., though the snow conditions were excellent during certain periods.

Michael Ballingall, senior vice-president of Big White and Silver Star resorts in the B.C. interior, told the Straight in a phone interview that snow conditions are easily the most important factor in determining attendance at B.C. resorts. "The person down in the United States, especially in the Washington state market, [is] hungry for our snow," he said. "It's emotional."

Ballingall added that many resorts offer incentives to American visitors. "For local pass holders down there, we give them 25 percent off their tickets," he said.

Ashley Tait, director of marketing with Tourism Sun Peaks, told the Straight in a phone interview that her resort is also trying to lure U.S. skiers with attractive packages. She noted that the average U.S. skier is in a "fairly high income bracket", which shields them somewhat from the effect of a declining U.S. greenback.

"People who are coming for a ski vacation in Canada are coming for some particular things you can only get in B.C.," Tait said. "The quality of the snow is certainly a big plus for us at Sun Peaks. Our snow is just amazing."

Tourism Whistler spokesperson Breton Murphy told the Straight in a phone interview that there has been a significant increase in the number of visitors to Whistler from Washington state during the past six months, compared to the same period a year ago.

He noted that this occurred even though the Canadian dollar was gaining strength against the U.S. dollar. He said that this trend might suggest that people from Washington state appreciate what Whistler has to offer.

"We don't take anything for granted," Murphy said.

He pointed out that Tourism Whistler has no control over "external factors" such as fluctuating currency values, the amount of snow, and gasoline prices.

"We need to monitor the exchange rate, and see how it might be impacting consumer behaviour, and then place that in the context with what we can influence," Murphy commented. "For us, what we've been working on in recent years–it's as important as ever now–is focusing on the value that Whistler is offering."

Hobden said that Export Development Canada, a federal Crown corporation, has forecast the Canadian dollar to fall below US$0.90 by the end of next year.

However, he said there is a possibility that the Canadian dollar will continue rising against its U.S. counterpart. One of the reasons, he noted, is that Canada is a net exporter of oil, whereas the U.S. is a net importer. "The price of oil has a strong impact on the currency-exchange rate," he said. "The latest thinking on the price of oil is it's probably going to remain high for the foreseeable future, given that demand is so strong and supplies are somewhat constrained. Inventories are declining. The fact of the matter is that existing wells are pumping out less."