Low loonie hurting Island cross-border tour operators

The low Canadian dollar is hurting some P.E.I. businesses that rely on cross-border shopping.

Companies that arrange tours to the U.S. say they have been suffering, and have been cancelling those trips.

"We've seen a big reduction in the amount of passengers that are going on those," said John Dunphy, co-owner of Target Tours in Morell.

"We've had to cancel a few of those trips this year because we just didn't have the numbers," he added. "Where we're seeing the difference is in these short trips, the shopping trips down to Maine and New Hampshire."

Dunphy says because of the low numbers he's renting fewer buses and hiring fewer staff, and his bookings for shopping tours are down 50 per cent.

"Being at par or $1.10 Canadian for an American dollar, I think they've seen that and they've said well we can, that's affordable to us and it's been a good deal," he said. "Now that it's at $1.35 seems to be questioning a lot more whether it's worth it."

Dunphy says all his other tours did very well.

The low dollar has been changing plans for other travellers as well.

Islanders have been booking trips in advance this season because of last year's harsh winter, but not necessarily to the U.S.

"They're looking at perhaps doing, say, the all-inclusive options instead, and putting off that U.S. trip until next year because it's hitting the pocket book really hard this year," said Andrea Carr-McNeill, director of agency support and marketing for The Travel Store.

"Snowbirds, it's certainly going to impact them this year because it's going to be a financial hit for them for sure," she said.

Some local companies said they are considering offering new trips within Canada, going to events such as big-name concerts.

Others believe the business will bounce back, once customers get used to the exchange rate.