PESTEL Commentary And Analysis Journals By Derrick Penner

Satisfactory Essays
PESTEL Commentary and Analysis Journals
Individual Assignment

The article I have chosen is from the Vancouver Sun and was published on July 08, 2016 by Derrick Penner. The article is about how exchange rates affect tourism levels in Canada and the effect those exchange rates have on American and Canadian travelers. The article is directly connected to the “E” (economic) dimension of the PESTEL analysis tool. Exchange rate is a key concept in economics and expresses a nations currency value in terms of other currencies. The article breaks down how the low Canadian dollar value is causing a surge of American tourists to travel north of the border. Also highlighted in the article is the fact that the number of Canadians traveling to the US has
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Canadians have become accustomed to great travel deals in the United States but those deals are no longer worth it with the low CAD, so instead of traveling south, Canadians are traveling locally at an increased rate. Canadians are getting the most out of their dollar by travelling across Canada, and Americans are getting the most out of the low CAD as well. The current exchange rate is $1.00 USD = $1.30 CAD so Canadians traveling south essentially pay 30% more for everything in the states. The Canadian hospitality industry is reaping the benefits of the low CAD, especially in western Canada, with the added business from locals and Americans seeking a deal. The Squamish Adventure Club, a British Columbian tourism hub for information and other attractions, has seen a 68% increase in American visitors over the first 6 months of 2016. There has also been an increase in Canadian tourists who don’t want to pay the automatic 30% mark-up across the border; the number of Canadians has almost doubled in the first half of 2016. The above average number of American tourists and local Canadians is expected to continue to rise throughout the peak tourism season and until the loonie rebounds and gains
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