PROFILE OF

2007CANADIAN VISITORS

TO NEW HAMPSHIRE

Prepared for

The New Hampshire Division of

Travel and Tourism Development

by

Dr. Mark J. Okrant

The Institute for New Hampshire Studies

PlymouthState College

Plymouth, New Hampshire

03264

September, 2008

Institute for New Hampshire Studies

17 High Street, MSC #39

Plymouth, New HampshireUSA 03264

603.535.2364 603.535.2351 (fax) plymouth.edu/inhs

PROFILE OF

2007CANADIAN VISITORS TO NEW HAMPSHIRE

OBSERVATIONS

  • Visitation Characteristics.

Since 2004, particularly during the past two years (2006 and 2007) Canadians’ visits to the United Stateshave increasedmeasurably. Since 2003, the increase of overnight visitors to the U.S. has been an incredible 92 percent. This is, in large part, a response to currency exchange rates, as well as the increasing favorability of gasoline prices on the U.S. side of the border.

During 2007, New Hampshire hosted 461 thousand overnight visitors. The increase in overnight visits to New Hampshire (+28%) was substantially greater than visitation in the New England region (+16%). Moreover, 15.9 percent of all Canadians who stayed overnight in New England spent one or more nights in New Hampshire. This percentage was only exceeded during 2004 [note: INHS has been collecting Canadian travel data since 1988].

During 2007, per person expenditures increased by 9 percent compared to 2006 ($238 vs. $218), as the exchange rate for a Canadian dollar reached 93cents US.

Compared to its northern New England neighboring states, New Hampshireexperienced the highest rate of increase in overnight Canadian visitation, relative to 2006. Overnight visitation increased by 28 percent, compared to 19 percent by both Vermont and Maine. New Hampshire’s market share of Canadian visitors to New England was 18.7 percent during 2007, a very encouraging 30 percent increase relative to 2006 (14.4 % market share). Moreover, the state experienced the greatest increase in market share in northern New England, relative to 2006 figures (NH=+19%, VT=10%, ME=+9%).

  • Party Characteristics and Demographics

Holiday and vacation travel (59%) remained the principal purpose of Canadians’ trip occasions, while a substantial proportion reported that they traveled to New Hampshire in order to visit their friends and relatives (15%), and

to attend events and attractions (10%).

1

The primary sources of Canadian visitors during 2006 were residents of Quebec(48%) and Ontario(23%) provinces; Nova Scotia14%) and New Brunswick(11%) remained principal secondary markets. Only British Columbia and Manitoba sent fewer visitors to New Hampshire; most provinces engendered significant increases in visitation, with visitation from New Hampshire’s two leading markets increasing by nearly one-third (Quebec= +30%, Ontario= +32%).

Approximately three-of-fourovernight Canadian visitors traveled to New Hampshire by automobile. Holiday airplane travel exhibited a measurable decline in importance(-89%) as a conveyance to the state during 2007,while bus travel increased substantially (+159%); perhaps this is fall out from WHTI policies and discussion.

Hotels/motels continued to be the accommodations of choice of more than one-half (55%) of all pleasure/vacation travelers. Combinations of lodging facility types were used by 13 percent, while campgrounds were the third most popular form (11%).

The average travel party size of overnight Canadian travel parties was 2.4 persons, 2.6 for pleasure/holiday seekers.

More than two-fifths of travel parties were comprised of two adults, a 17 percent increase compared to 2006.Parties of three or more adults without children comprised another 33 percent of all visitors. Parties with children experienced a 6 percent decrease compared to 2006.

There was a substantial increase in the proportion of overnight pleasure/holiday trips that were 1 night (28%, +217%) and 2 nights (33%, +75%). The average length of an overnight stay decreased by 10 percent during 2007 (2.7 nights) compared to 2006 (3.0 nights).

Females comprised a small plurality of overnight visitors to New Hampshire (47 vs. 45%).

People in the 55-plus age groups represented nearly 30 percent of visitors to the U.S., an 18.5 percent increase vs. 2006.

  • Seasonality

Three-fifths(60%) of all Canadian overnight holiday/pleasure visits occurred during the summer season; spring visits were second(21%). The largest increase in total visitation relative to 2006 was during the fall season (+77%), while increases in total visitation occurred during spring (23%) and summer (19%). Total (-49%) and proportional (-58%) visitation decreased markedly during winter.

  • Spending

The average overnight pleasure/vacation traveler from Canada spent $242 US while visiting New Hampshire during 2007; this represents a 4 percent increase versus 2006($233 US).

87 percent of all parties expended in excess of $200 (CDN), compared to 83% during 2006.

1

THE DATA

Visits to the U.S.by Canadians increased by 10.5 percent during 2007 relative to 2006 [Table 1].

Table 1

All Canadian Visitors to the U.S. 1995-2007

One or More Nights

Visitors* % Change

1995 14,663 - 2.1

1996 15,127 + 3.2

199713,430 - 11.2

199814,116 + 5.1

199914,110 - 0.0

200014,666 + 3.9

200113,527 - 7.8

200213,025- 3.7

200312,666 - 2.8

200413,849+ 9.3

200514,862+ 7.3

200621,987+47.9

200724,297+10.5

* thousands of visits

Source: International Travel Survey: Canadian Residents, Statistics Canada (2007)

During 2007, New Hampshire hosted approximately 461 thousand overnight visitors from Canada, versus 260 thousand during 2006 Compared to 2006, visits to New Hampshire increased at a greater rate than in New England as a whole. Also, the state’s market share of Canadians visiting the region reached nearly 16 percent [Table 2].

Table 2

Overnight Visits to New England and New Hampshire by Canadians

1988-2007

Visitors %Change

YearNEng* NH* NEng NH NH as % of NEng

19882,647 324 - - 12.2%

19892,890 374 9.2%15.4%12.9%

19903,145 415 8.8%11.0%13.2%

19914,062 599 29.2%44.4%14.5%

19923,611 541 -11.1% - 9.7% 15.0%

19933,203 449 -11.3% -17.1%14.0%

19942,623 345 -18.1% -23.2%13.1%

19952,679 418 2.1% 21.2%15.6%

19962,700 405 0.8% - 3.1% 15.0%

19972,659 313 - 1.5% -22.7% 11.8%

19981,753 256 -34.1% -18.2% 14.6%

19992,136 306 +21.8% +19.5% 14.3%

20001,968 299 - 7.9% - 2.3% 15.1%

20012,128 294 + 8.1% - 1.7% 13.8%

20022,066 239 - 2.9% -18.7% 11.6%

20032,068 311 + 0.1% +30.1% 15.0%

20041,930 329 - 6.7% + 5.8% 17.0%

20052,390 329 +23.8% + 0.1% 13.8%

20062,503 360 + 4.7% + 9.4%14.4%

20072,896 461 +15.7% +28.1% 15.9%

*thousands of visits

Source: International Travel Survey: Canadian Residents, Statistics Canada (2007)

Compared to 2006, total visits to New Hampshireby Canadians increased in 2007, by 19.2 percent; overnight visitation increased by 28.1 percent during the same period [Table 3].

Table 3
Canadian Visitors to New Hampshire

Total and One or More Nights 2007

TOTAL ONE OR MORE NIGHTS

Visits*% ChangeVisits* % Chg % of US Total

2000 811 - 14.5% 299 -26.2% 2.0%

2004 794 - 2.1% 329 +10.0% 2.4%

2005 875 +10.2% 329 + 0.1% 2.2%

2006 852 - 2.6% 360 + 9.4% 1.6%

20071,016 +19.2% 461 +28.1% 1.9%

*thousands of visits

Source: International Travel Survey: Canadian Residents, Statistics Canada (2007)

During 2007, overnight expenditures by Canadian visitors to New Hampshireincreased by 33 percent (from $89 million CDN to $118 million CDN), compared to 2006. The average expenditure by Canadians who stayed overnight in the state increased by approximately $20 (US), from $218to $238(US) per person per visit [Table 4].

Table 4

Canadian Overnight Visitors to New Hampshire

and Expenditures Made--1993-2000, 2004- 2007

Overnight Expenditures Ave. Expend. Exchange Ave.

Visitors (000s) ($ Millions CDN) Per Person (CDN) Rate Per Person (US)

1993 449 $75 $167 .755 $126

1994 345 $52 $151 .731 $110

1995 417 $72 $173 .737 $128

1996 405 $63 $156 .739 $115

1997313$52 $168 .710 $119

1998256$43 $169 .648 $110

1999306$58 $190 .676 $128

2000299$54 $183 .647 $132

2004329$70 $212 .768 $163

2005 329 $66 $201 .829 $167

2006360$89 $248 .879 $218

2007461$118 $255 .932 $238

* revised per person expenditure data

Source: International Travel Survey: Canadian Residents, Statistics Canada (2007)

Increased spending was in response to a further 4 percent increase in the relative value of the Canadian dollar [Table 5] and the greater relative cost of a gallon of gasoline within Canada, both of which increased the value of traveling within the U.S. [Table 6].

Table 5

Average Annual Exchange Rate

(value of Canadian $ in U.S. currency)

1993 .7551998.6482003.716

1994 .7311999 .676 2004 .768

1995 .7372000 .647 2005 .829

1996 .7392001.6472006 .879

1997 .7102002.6362007 .932

Table 6

Relative Cost of Gasoline

Summer 2005-2008

Ave cost/literTranslated into Cost gas in Canada

Year Ave. $/gal. NH in $Canada------ per gallon US$ cost vs.U.S.

2005 $2.25 $0.91 $2.84 +0.59US

2006 $2.98 $1.08 $3.32 +0.34US

2007 $2.95 $1.06 $3.76 +0.81US

2008 $3.65 $1.40 $4.93 +1.28US

Compared to its northern New England neighboring states, New Hampshire experienced the highest rate of increase in overnight Canadian visitation, relative to 2006. New Hampshire’s market share remained slightly below 2 percent (1.9); however, the state experienced the greatest increase in market share in northern New England, relative to 2006 [see Table 7].

Table 7

Canadian Overnight Visitors—Comparative Data 2006 and 2007

New Hampshire – Maine – Vermont

NH ME VT

2006 2007 %chg. 2006 2007 %chg. 2006 2007 %chg.

Overnight Visits* 360 461 +28.1% 746 887 +18.9% 642 765 +19.2%

Market Share 1.6% 1.9% +18.8% 3.4% 3.7% +8.8% 2.9% 3.2% +10.3%

*Visits in 000’s

Source: International Travel Survey: Canadian Residents, Statistics Canada (2006 and 2007)

During 2007, 59.4 percent of all overnight trips to New Hampshire by Canadians was for holidays/pleasure. There was a 142 percent increase in respondents who reported shopping as a purpose for visiting the state[Table 8].

Table 8

Purposes for Travel to New Hampshire

by CanadianVisitors—2007

Canada

Holiday/vacation59.4%

Visit friends/relatives14.9

Attend events/attractions10.1

Transit to/from Canada 5.4

Shopping 2.9

Meetings 1.6

Personal (medical, wedding) 1.6

Conv./conf./seminar 0.7

Visit 2nd home/condo 0.6

Others 3.8

Source: International Travel Survey: Canadian Residents, Statistics Canada (2007)

New Hampshire’s 2007market share of Canadian visitors to New England was 18.7 percent during 2007, a very encouraging 30 percent increase relative to 2006 (14.4 % market share). Among the five leading provincial markets, New Hampshire attracts its largest proportion of Canadians visiting New England from Nova Scotia (33%) and Ontario (19%). The state’s market share of Quebecois (17%) is slightly below the state’s overall market share of Canadian visitors to the New England region (19%) [Table 9].

Table 9

Sources of

Canadian Overnight Visitors to New Hampshire—2007

Total Visitors % of NH’s Market Share

From to NH NH Total NEng Total of New Eng. Visitors

CANADA461,200 100.0 2,461,800 +18.7%

Quebec219,100 47.5 1,292,200 +17.0%

Ontario106.900 23.2 577,800+18.5%

Nova Scotia 62,300 13.5 188,100+33.1%

New Brunswick 41,800 11.6 269,100+15.5%

British Columbia 8,000 1.7 47,000+17.0%

Pr. Edward Island 4,000 0.8 21,100+19.0%

Alberta 6,000 1.3 40,200+14.9%

Newfoundland 3,300 0.7 8,800+37.5%

Manitoba 300 0.1 7,200+ 4.2%

Saskatchewan 2,200 0.4 7,100+31.0%

Source: International Travel Survey: Canadian Residents, Statistics Canada (2007)

Approximately 76 percent of all overnight Canadian visitors and 75 percent of holiday visitors traveled to New Hampshire by means of automobile during 2007.The proportion of holiday travelers arriving by airplane dropped from 12.7 percent in 2006 to 1.4 percent in 2007. 5.7 percent of all 2007 travelers traveled to New Hampshire by bus, compared to 2.2 percent during 2006 [Table 10]. This appears to be in response to the WHTI initiatives, a greater issue in air travel.

Table 10

Transportation Modes to New Hampshire

by Canadian Overnight Visitors—2007

TotalHolidays

Automobile76.3% 74.9%

Airplane 3.6 1.4

Bus 4.8 5.7

Source: International Travel Survey: Canadian Residents, Statistics Canada (2007)

More than 50 percent of Canadian overnight pleasure/holiday visitors stayed in hotels or motels while traveling in New Hampshire during 2007. People staying in combinations of accommodations increased markedly [Table 11].

Table 11

Accommodation Types

All Overnight Trips to New Hampshire by Canadians

2006 vs. 2007

Total Holidays

2006 20072006 2007

Hotel/Motel53.1% 52.0%56.3% 54.7%

Home of fr/rel 9.4 9.0 2.3 1.6

Campground 8.8 8.311.6 11.1

Combinations 9.1 11.6 7.9 12.8

Cottage/cabin 1.6 1.2 1.9 1.4

No type reported 11.2 11.912.2 12.0

Source: International Travel Survey: Canadian Residents, Statistics Canada (2006 and 2007)

The average travel party size of overnight Canadian travel parties was 2.4 persons, 2.6 among holiday travelers.Two person travel parties exhibited the greatest increase in 2007.Parties comprised of couples and three or more adults comprised the vast majority of visitors.

Table 12

Travel Party Size

Overnight Trips to New Hampshire by Canadians

2006 vs. 2007

Total Holidays

2006 20072006 2007

One 7.3% 7.3% 4.5% 4.9%

Two40.6 44.536.2 42.4

Three10.0 9.7 9.8 9.0

Four26.021.528.7 23.6

Five or more 16.117.020.8 20.2

Ave. Party Size 2.5 2.4 2.8 2.6

Source: International Travel Survey: Canadian Residents, Statistics Canada (2007)

Table 13

Composition of Traveling Party

Overnight Trips to New Hampshire by Canadians—2007

TotalHolidays

Travel Alone 5.7% 3.6%

2 Adults 40.6 37.9

3+ Adults 25.7 27.3

2 Adults w/Child(ren) 10.2 13.1

3+ Adults w/Child(ren) 11.110.7

Source: International Travel Survey: Canadian Residents, Statistics Canada (2007)

During 2007, approximately 60 percent of all overnight trips were of 1 or 2 nights duration. The average length of an overnight visit decreased by 10 percent (2.7 vs. 3.0 nights) compared to 2006 [Table 14].

Table 14

Length of Visit for Pleasure/Holiday

Overnight Trips to New Hampshire—2007

Canada

1 night27.6%

2 nights32.5

3 nights22.6

4-6 nights10.3

7-9 nights 4.7

10+ nights 2.3

Mean overnight 2.7

visit nights

Source: International Travel Survey: Canadian Residents, Statistics Canada (2007)

Females continued to comprisea larger proportion of overnight Canadian visitors to New Hampshire during 2007 [Table 15].

Table 15

Sex of Traveler

All Overnight Trips to New Hampshire by Canadians

2007

Total Holidays

Male44.4% 45.4%

Female49.1 47.1

N.R 6.5 7.5

Source: International Travel Survey: Canadian Residents, Statistics Canada (2007)

The age pyramid of Canadian visitors continued to be increasingly top-heavy. People in the 55-plus age groups represented nearly 30 percent of pleasure/holiday visitors to the U.S., an 18.5 percent increase vs. 2006 [Table 16].

Table 16

Age of Travelers

All Overnight Trips to New Hampshire by Canadians

2007

Total Pleasure/Holidays

N.R. 6.5% 7.5%

<2 years 0.9 1.0

2 -11 years 5.1 6.3

12-19 years 4.6 4.4

20-24 years 2.8 3.0

25-34 years 7.9 8.6

35-44 years16.0 18.8

45-54 years20.7 21.1

55-64 years19.5 17.4

65 + years 16.1 12.0

Source: International Travel Survey: Canadian Residents, Statistics Canada (2007)

The largest percentage of overnight travel by Canadians occurred during the summer months (56.1%), which was a4 percentdecrease in the relative importance of this market compared to 2006. Spring remained the second leading period for travel,while winter experienced substantial decline [Table 17].

Table 17

Quarter of Visit for Total Overnight Trips to New Hampshire—2007 vs. 2006

20062007 % chg 07vs.06

Third (Jul-Sep)58.3% 56.1% - 3.8%

Second (Apr-Jun)20.6 21.2 + 2.9

Fourth (Oct-Dec)14.5 20.1 +38.6

First (Jan-Mar) 6.6 2.6 - 60.6

Source: International Travel Survey: Canadian Residents, Statistics Canada (2006 and 2007)

Among pleasure/holiday travelers, fall exhibited the greatest increase in its relative share of visitors, and winter the greatest decrease [Table 18].

Table 18

Quarter of Visit for Overnight Pleasure/Holiday Trips to New Hampshire—2007

20062007 % chg 07vs.06

Third (Jul-Sep)62.2% 60.1% - 3.3%

Second (Apr-Jun)21.3 21.2 - 0.4

Fourth (Oct-Dec)11.7 16.7 +42.7

First (Jan-Mar) 5.0 2.1 -58.0

Source: International Travel Survey: Canadian Residents, Statistics Canada (2007)

Pleasure/Holiday travel to New Hampshire by Canadians increased by 23 percent compared to 2007. Greatest growth occurred during the summer season.There was a substantial decrease in the number of visitors during thefirst three months of 2007 [Table 19].

Table 19

Total Pleasure/Holiday Visits by Quarter

2006 vs. 2007

20062007 % chg 07vs.06

Total (Jan-Dec)262.6323.1 + 23.0

Third (Jul-Sep)163.2194.1 + 18.9

Second (Apr-Jun) 55.8 68.4 + 22.6

Fourth (Oct-Dec) 30.6 54.0 + 76.5

First (Jan-Mar) 13.0 6.7 -48.5

visits in thousands

Source: International Travel Survey: Canadian Residents, Statistics Canada (2006 and 2007)

Spending by Canadians traveling overnight in New Hampshire was $109.6 million (US) during 2007, an increase of 40 percent compared with 2006.Per personexpendituresin New Hampshire by overnight holiday/vacation travelersfrom Canada reached $242 (U.S.), a 4 percent increase compared to 2006[Tables 20 and21].

Table 20

Spending on

All Overnight Trips to New Hampshire

by Canadian Visitors—2006* vs. 2007*

Total Holidays

2006200720062007

$78.4M US$109.6M US$61.2M US$39.1M US

Per Person Per Person

2006200720062007

$218 US$238 US $233 US$242 US

* 2006 ave. value of $1.00 CDN = $ 0.879 US

* 2007 ave. value of $1.00 CDN = $ 0.932 US

Source: International Travel Survey: Canadian Residents, Statistics Canada (2006 and 2007)

DTTD Annual Travel Barometers (2006 and 2007)

Table 21

Spending Distribution in Canadian Dollars

All Overnight Trips to New Hampshire

2006 vs. 2007

TotalPleasure/Holidays

2006 2007 2006 2007

No $ spent 0.4% 0.6% 0.5% 0.5%

< $50 2.3 1.8 0.1 0.3

$50 - 19919.614.616.3 12.0

$200-49932.0 33.729.1 30.7

$500-99917.2 23.720.2 27.0

$1000+28.5 25.633.9 29.6

Source: International Travel Survey: Canadian Residents, Statistics Canada (2006 and 2007)

Conclusions

For the past several years,New Hampshirehassuccessfully lured increasing numbers and proportions of Canadian visitors to stay overnight inside the state’s boundaries.Canada has solidified its position as a significant secondary source of New Hampshire’s visitors. A beneficial exchange rate as well ascomparativelyfavorable gasoline prices within the United States, have made cross-border travel increasingly popular on the part of Canadians. No one can be certain what the impact of variable economic balance, uncertain fuel supplies, and WHTI will be on Canadians’ future decisions to travel. Therefore, for this state to continue to increase its market share of visitors to the region will necessitate a two-pronged marketing-traveler education effort.Through this approach, New Hampshirecan sustain itspresent momentum.

1