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Author
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Topic: How will the soaring loonie affect your timesharing?
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X-ring
TUG MemberPosts: 1204
From: Ottawa, Canada - Cancun (wks 7-8), Hapimag World-Visa, SA (2 white)
Registered: Jan 2002
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posted 10-10-2004 13:56
    
The loonie has been going gangbusters against virtually all currencies since June including the US dollar, the pound, the peso, the euro, the Swiss franc and the rand.While it touched $0.80 US this week, more appreciation is in store according to some economists; some are even calling for the loonie to trade at par with the US dollar by the end of 2005. I don't believe that this is a temporary phenomenon - the world increasingly needs our natural resources. This is great news for Canadians who travel and for paying maintenance fees due in these currencies. But is there a downside? For instance, will Americans now be less willing to buy Canadian timeshares, tend to sell the ones they have or even trade less into Canada, eventually reducing the trading power of Canadian resorts?
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martinus_scriblerus
TUG MemberPosts: 6
From: London, ON, Canada
Registered: Mar 2003
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posted 10-11-2004 08:45
If you can trade effectively into another country don't you just assume you'll be paying what the market is there and not worry too much about it. I mean consider how hard it is to trade into Paris, yet I doubt there are many cities that are much more expensive than there.And yes, it's a pleasure that our dollar is finally moving. After the Cretien goverment's policy of currency debasement, it is good to watch the USA following the same tack and maybe we'll benefit for a while instead of having to pay like usual. IP: Logged |
CarlK
TUG MemberPosts: 98
From: Kingston, Ontario, Canada
Registered: Aug 2003
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posted 10-12-2004 07:03
quote:
Originally posted by X-ring:
This is great news for Canadians who travel and for paying maintenance fees due in these currencies.
It is indeed! quote:
But is there a downside? For instance, will Americans now be less willing to buy Canadian timeshares, tend to sell the ones they have or even trade less into Canada, eventually reducing the trading power of Canadian resorts?
I don't think so. I think Canadian resorts can compete with resorts elsewhere--unless their marketing strategy has been primarily based on the $ advantage of the exchange rate. Carl
[This message has been edited by CarlK (edited 10-12-2004).] IP: Logged |
pwrshift
TUG MemberPosts: 2764
From: Toronto
Registered: Dec 2000
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posted 10-12-2004 07:15
Buy now! After the US election you may see the dollar value reverse. We live in a false economy right now, only while the US is in pain - that will change and we'll be back in the doldrums. Long term Canada can't compete due to our taxation and govt. restrictions to business development. A high dollar value means exports are going to suffer big time, and the govt. knows that can't continue. JMHOBrian ------------------
Those who dream most, do most. IP: Logged |
Harmina
TUG MemberPosts: 758
From: Ont. Canada
Registered: Dec 2000
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posted 10-12-2004 18:03
The new RCI exchange fee has gone back up to $196. Is this a reflection of a stronger $?? ------------------
Harmina IP: Logged |
Heron
TUG MemberPosts: 1472
From: Ont, Canada
Registered: Mar 2003
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posted 10-13-2004 05:13
Unfortunately those same economists were predicting it was going to go to $0.70 about two months ago.Personally, I'm buying US$'s right now and yes, it's making US denominated TS more attractive. I'm concerned with the impact the dollar is going to have on our exports and as a result the impact on our economy. The last time there was a run up they took a beating and we lost a number of Canadian companies that are dependent on the US. I think it's going to get bumpy again... time will tell. quote:
Originally posted by X-ring:
While it touched $0.80 US this week, more appreciation is in store according to some economists; some are even calling for the loonie to trade at par with the US dollar by the end of 2005. I don't believe that this is a temporary phenomenon - the world increasingly needs our natural resources.But is there a downside? For instance, will Americans now be less willing to buy Canadian timeshares, tend to sell the ones they have or even trade less into Canada, eventually reducing the trading power of Canadian resorts?
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Keitht
TUG MemberPosts: 1182
From: Gloucester, England, Own at Plas Talgarth Wales
Registered: Feb 2003
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posted 10-13-2004 07:21
From the UK, Canada has gone from being extremely good value for money to good value for money. The $C - £ exchange rate would have to drop a good deal further to stop me going back.------------------
Regards Keith IP: Logged |
X-ring
TUG MemberPosts: 1204
From: Ottawa, Canada - Cancun (wks 7-8), Hapimag World-Visa, SA (2 white)
Registered: Jan 2002
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posted 10-13-2004 14:30
quote:
Originally posted by Heron:
Unfortunately those same economists were predicting it was going to go to $0.70 about two months ago.
That wouldn't include Don Coxe, the economist on whom I have the most confidence. Those who listened to him over the last few years were into energy and resource stocks long before Bay Street caught on. BTW, he writes a column for Maclean's and is the chief economic strategist for BoM's subsidiary in the U.S. He has a weekly conference call at http://www.bmoharrisprivatebanking.com/webcast.asp Worth a listen! quote:
Personally, I'm buying US$'s right now and yes, it's making US denominated TS more attractive.
Canada has its economic house in order and is running a $9B surplus while the U.S. is running at a $500B/year deficit. Coxe predicts a devaluation of the U.S. dollar and the loonie trading at par within the next two years or so. If I were inclined to buy U.S. assets, I'd hold off as things may get considerably cheaper from a Canadian perspective.
quote:
I'm concerned with the impact the dollar is going to have on our exports and as a result the impact on our economy.
I'm with you on that one but its impact will vary on different segments of the economy. Our secondary industries (e.g. manufacturing, tourism) will be less price-competitive in the world but our primary industries (e.g. energy, mining) will be impacted to a lesser extent and continue to do very well, so long as the Asian economies continue to expand, of course.
[This message has been edited by X-ring (edited 10-13-2004).] IP: Logged |
X-ring
TUG MemberPosts: 1204
From: Ottawa, Canada - Cancun (wks 7-8), Hapimag World-Visa, SA (2 white)
Registered: Jan 2002
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posted 10-14-2004 10:53
quote:
Originally posted by X-ring:
some economists ... are even calling for the loonie to trade at par with the US dollar
On the front page of today's National Post. [This message has been edited by X-ring (edited 10-14-2004).] IP: Logged |
X-ring
TUG MemberPosts: 1204
From: Ottawa, Canada - Cancun (wks 7-8), Hapimag World-Visa, SA (2 white)
Registered: Jan 2002
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posted 10-15-2004 05:57
quote:
Originally posted by X-ring:
But is there a downside? For instance, will Americans now be less willing to buy Canadian timeshares, tend to sell the ones they have or even trade less into Canada, eventually reducing the trading power of Canadian resorts?
From today's Financial Post. Bev - the link is no longer restricted to subscribers.
[This message has been edited by X-ring (edited 10-15-2004).] IP: Logged |
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