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Money talks—and the Canadian dollar currently has one of the loudest voices in the global marketplace. Good—and bad. That currency strength is having a knock-on effect on the travel industry: Canada is expected to become a dearer destination for all of CTC’s key markets in the third quarter of 2010.

That’s one top-level finding from the latest US and Overseas Travel to Canada: Short-Term Competitive Outlook, Third Quarter 2010 report, published by the Research department of the Canadian Tourism Commission (CTC). The 26-page analysis points to significant year-over-year increases in travel prices.

Some other global indicators:

• That strong loonie makes it harder than ever to persuade Americans to head north. A typical four-night stay, including airfare, meals, accommodation and other items, will cost 18% more than a year ago, with average airfares predicted to rise by 7%.

• Some better data from Mexico: air capacity to Canada is scheduled to grow by 22% on Q3 ’09. However, once travellers get here, the competitive price analysis anticipates that the average cost of a seven-night stay will shoot up 17%, compared with a mere 1% rise to other destinations.

• There’s a level playing field in South Korea. Although accommodation and other items are expected to cost 8% to 12% more, that will be offset by a similar decline in average airfares, keeping the cost of a 10-night stay in Canada on par with the same period last year.

• Japan expects to have plenty more seats on planes to Canada in Q3 ’10: 10% to be more precise, including new non-stop services to Alberta. However, the competitive price index indicates the average cost of a 10-night stay in Canada in Q3 ’10 will leap 26%, with airfares rising 51%.

The Conference Board of Canada prepared the Short-Term Competitive Outlook, Third Quarter 2010 report for CTC.

CTC Research examines data from the competitive price index, calculated on a potential traveller’s expected spending on airfares, hotels, meals and other costs for travel to Canada compared with competing destinations. Other factors are air capacity to Canada and competitive destinations, and the Canadian exchange-rate index.

Read the full Q3 2010 report.