We’re coming up on the third full year of a downward slalom in the value of the Canadian dollar (affectionately known as the "loonie" because the coin version carries the image of a loon on the reverse side) against the U.S. dollar.
"At the very least, the lower loonie will clip Canadian consumers’ buying power and points to a period of slower real consumer spending growth versus both the U.S. and the rest of the economy," Bank of Montreal Chief Economist Douglas Porter told the Financial Post. The weakness of the ‘loonie’ is blamed on softness in prices for Canadian oil, and although the rate of exchange is expected to stabilize later this year, it will hover around 80 cents to the U.S. dollar for some time to come. Good for U.S. travel to Canada, bad for Canadian tourism to the U.S. (Canadians who are of the habit of crossing the border to shop are expected to spend their dollars closer to home.)
But paradoxically, as the buying power of the Canadian dollar has slipped, Canadian’s primacy as Las Vegas’s number-one international feeder market has only grown. According to the Las Vegas Convention & Visitors Authority, we had 1,767,060 visiting Canadians in 2012. The following year, that number rose to 1,847,910. Last year it was 1,912,400. Of those, 555,000 flew in on WestJet, the number-one international air carrier into and out of Las Vegas. They generated an estimated economic impact of $1.3 billion, based on an average daily room rate of $129 a night and daily discretionary spending of $75.
If you’re looking to convert loonies into American dollars, Foreign Money Exchange (101 Convention Center Drive) has a long track record, going back 30 years, and doesn’t charge fees or commissions. Travelex Currency Services has a venue in Fashion Show Mall, which may be more convenient than the one in McCarran International Airport’s new Terminal 3, for a variety of reasons, including the fact that Travelex is in Terminal 3’s "Arrivals" sector – useful only if you want to swap out your loonies right upon landing in Las Vegas, plus the exchange rates offered at the airport outlet are generally significantly less favorable. Also note that Travelex charges fees -- a flat rate of $7.95 for loonies to U.S. dollars, $9.95 for the reverse, any any transaction under $500.
You can exchange Canadian for American currency at your nearest casino cage (less so for non-Canadian currencies), but be warned that rates vary from one casino to another. The last time that LVA visited this topic, back in March of this year, Bally’s Las Vegas was exchanging at a 0.76-to-1 ratio but El Cortez was offering 0.7-to-1, so it's worth checking with a few casino cages (you can ask the front desk to connect you) and shopping around. The one place you don’t to switch currency is at any of Las Vegas’ myriad check-cashing outlets. The last time we checked, they were taking a 10 percent "rake" off the top of however much money you cashed. Ouch.
