A new report by Statistics Canada shows that Canadians spent a record $5.8 billion abroad on travel, education and health care in the first quarter of 2006.

Surprising? Not really.

In the first quarter of 2006, the Canadian dollar averaged 86.5 cents US. During 2005, it averaged 82.5 cents US. As recently as 2002, it was a staggering 63.6 cents US.

No wonder Canadians are flexing their newfound muscle by spending their commodity-steroid-enhanced dollars abroad. It's been a long time coming.

The Stats Can report also indicates that the travel deficit with the US is its highest in 12 years. Not surprisingly, 12 years ago was 1994, the last time the Canadian dollar was even within hailing distance of its present levels. At that time it was 73.2 cents, though it was on a prolonged downslide that saw it start that year over 80 cents. Canadians do love their trips to warm sunny climes in the winter!

The travel deficit is made up of two elements - foreigners spending in Canada, and Canadians spending abroad. The other side of the Canadian spending equation is foreigner spending in Canada. With the Canadian dollar now that much more expensive than the US dollar (even compared to a year ago!) Americans are a little more reluctant to come to Canada to spend their money.

Businesses dependent on tourism may have a little more difficult time of it this summer (and next winter) as fewer Canadians leave home to travel the world, and fewer foreigners come to visit. No wonder there are television ads geared towards Canadians pushing hard on the excitement of a Canadian vacation this summer!mortgage calculator