ECONOMIC ADVANTAGE FOR ALL

By LORI SHULL
TIMES STAFF WRITER
FRIDAY, APRIL 9, 2010
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Between Canada and the U.S., a dollar really is a dollar.

The two currencies reached a parity earlier this week, and are likely toremain there for the summer. The Canadian dollar is likely to become stronger as the summer goes on, though it will not reach 2007 levels, when it was 10 cents over par, according to Camilla C.B. Sutton, a currency strategist with Scotia Capital, one of Canada's leading banks

All that means good news for American businesses along the border, as more Canadians may be tempted to come across the St. Lawrence River to shop.

"They can do their grocery shopping here, they can do clothing shopping here, they can shop for big-ticket items here because their money is worth more over here than it is at home," said Patricia L. McKeown, director of the St. Lawrence County Chamber of Commerce. "Canadians like to shop here; we know this. We want people from all over to come here with fat wallets and leave with them empty."

Several times in recent years, Canadian loonies have approached par with American dollars, but they have never stayed there for very long. The Canadian dollar is called a loonie for the bird that appears on the coin. This time, it's likely the two will remain level for most of the summer.

"The outlook for the Canadian economy is a bit stronger than the outlook for the American economy," said Martin D. Heintzelman, economics and financial studies professor at Clarkson University, Potsdam, and director of its Center for Canadian Studies. "The Canadian economy is somewhat more resources-based, with oil-drilling in Alberta, so as the world economy in general picks up, the demand for oil goes up and the price goes up, which is good for the Canadian economy."

So far this year, traffic across the Thousand Islands Bridge at Collins Landing is on the rise. In March, passenger traffic was up about 7 percent, from 107,423 cars last year to 114,918 in 2010, according to the Thousand Islands Bridge Authority.

For the first week in April, passenger traffic is up 34 percent, from 25,911 last year to 34,608 this year. Authority officials said the dramatic increase likely is due to Easter weekend sales in the U.S. and the exchange rate.

The Ogdensburg-Prescott Bridge has not noticed any increases in traffic, according to Wade A. Davis, executive director of the Ogdensburg Bridge and Port Authority, although a change in the exchange rate likely will cause a spike in crossings.

The increases are something businesses should take advantage of, Ms. McKeown said. Though the St. Lawrence County Chamber of Commerce is not holding any promotions to attract more people to this side of the border, it is ready to offer advice to any businesses that may want to take advantage of the situation. She suggested raffling off iPads or other in-demand products.

The 1000 Islands Tourism Council, on the other hand, is actively promoting itself to Canadians.

"We're going to be rebalancing our advertising, particularly in Ottawa," said Gary S. DeYoung, director of tourism for the council. "We're going to be up there, doing more, getting our literature up there, advertising more and focusing on that."

Ottawa has one of the highest average income levels in the country, between $80,000 and $90,000 a year per family, according to Mr. DeYoung.

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PHOTOS
Lindsey M. Prashaw, Massena, an employee at Trombino's Restaurant, 181 Center St., Massena, places money in a register Thursday night. Trombino's accepts both Canadian and U.S. currency and many of its customers hail from across the border.
JASON HUNTER / WATERTOWN DAILY TIMES
Lindsey M. Prashaw, Massena, an employee at Trombino's Restaurant, 181 Center St., Massena, places money in a register Thursday night. Trombino's accepts both Canadian and U.S. currency and many of its customers hail from across the border.
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