PORTSMOUTH, N.H. (AP) – Canadians visiting New England this October can enjoy the crisp air, the vivid colors of the fall foliage, and the lure of factory-outlet shopping made more affordable now that the loonie is at par with the U.S. dollar.

The soaring loonie is leading a growing migration of Canadians to spend their travel budgets south of the border, and causing grief for Canadian tourism operators as more Americans decide to stay at home.

“When the exchange rate began getting closer to par we saw an increase in Canadian clients … and they’re coming throughout the year, instead of just off-season,” said Steve Gendall, owner of the Maple Leaf Motel in nearby North Conway, a scenic mountainous area known for its skiing and factory-outlet shopping.

“We began seeing more Canadians two years ago, and it has increased steadily ever since.”

In fact, the number of Canadians visiting New Hampshire for one night or more in 2006 increased by 9.5 per cent over the previous year.

“We expect it will be a double-digit increase for 2007 … with the dollar reaching parity,” said Chris Ryall, Canadian representative for the New Hampshire Division of Travel and Tourism Development.

“Having the loonie on par with the U.S. dollar really helps increase the spending,” he said. “It definitely attracts people to stay longer and spend more.”

A recent Investors Group survey found that 44 per cent of Canadians plan to take more vacations outside of Canada because of the increasing value of the Canadian dollar, while 41 per cent said they will be able to stay away for a longer time on vacations.

A scan of vehicle license plates in the parking lots of hotels and malls in Portsmouth and neighboring Kittery recently showed a large number of visitors from the Maritime provinces, Quebec and Ontario.

“The dollar is a dollar again,” said Archie Penny of Saint John, N.B., as he and his wife, Berlee, strolled between factory outlet stores in Kittery.

The couple was making their first shopping trip into the United States in about 15 years, and credited their decision to cross the border with the loonie hitting par with the American dollar.

“We’re going to head south in the spring, and we’re going to book early while the dollar’s at a good price,” he said.

Others, like Mindy McMinniman of Fredericton, said they’d been making regular treks into the United States even when the Canadian dollar was low.

She said the New England states offer a variety of goods and experiences she can’t get at home.

Louise and Gilles Lacoste from Montreal loaded parcels into their vehicle as they took a break from shopping near Portsmouth.

The couple has vacationed in the United States for the past 18 years, spending four months in Texas during the winter, and a pair of trips in the summer and fall to New Hampshire and Maine.

“So we were snowbirds when the dollar was no good at all,” Gilles said. “(The at-par dollar) just helps us increase our style of living in the U.S. … we spend maybe the same amount, but we get more for our money.”

The story is the same elsewhere along the border, with state tourism departments reporting an increase in visits by Canadians as the dollar inched towards par.

“It’s no longer, do shopping and go back across the border again, there are a lot of incentives for Canadians to spend more time and spend some overnights in Washington state,” said Betsy Gabel, manager of marketing for Washington State Tourism.

She said the department plans to step-up its marketing campaigns to attract more visitors from British Columbia.

States farther from the border are putting out the welcome mat as well.

“We were doing a little happy dance when we heard about the dollar being on par,” said Eileen Forrow, vice president of sales for Visit Florida, the state’s official marketing corporation.

“Traditionally we have increased our Canadian visitation over the last several years,” she said, adding that in 2006, 2.1 million Canadians visited the state.

That was a 3.2 per cent increase in the number of Canadian visitors to Florida from the previous year in 2005.

The state’s largest attraction – Walt Disney World – is banking on the number of Canadian visitors continuing to rise.

“We’ve seen a steady increase in the number of Canadians visiting Walt Disney World in the last few years, and with the dollar at parity, we are expecting to welcome even more this winter,” said Bruno Jauernig, vice-president marketing for Walt Disney World.

The company expects similar gains at its Disneyland park in California.

But it’s a much different story when you look at the flow of American tourists coming north.

Statistics Canada recently reported that the number of U.S. visits to Canada is at its lowest level since records started being kept in 1972.

“The U.S. market is down by 35 per cent in five years,” said Randy Williams, president of the Tourism Industry Association of Canada.

“That means one in three Americans who used to come here aren’t coming any more, and that’s a huge drop when U.S. travel represents 80 per cent of our inbound market.”

Williams said every time the dollar has increased, there has been a corresponding decrease in Americans visiting Canada.

“Our travel deficit five years ago was $1.5 billion … and today it’s about $7 billion,” said Williams. “That’s the difference between what Canadians spend abroad and what visitors spend in Canada.

“The next two or three years don’t look much better.”

Williams said the Canadian government and the tourism industry must develop new tourism products and increase advertising in the U.S. if they are to regain some of their lost market, but he’s concerned congestion at the border and confusion about passport requirements will offset those efforts.

Paul Hicks, who operates the Chalet in the Woods in Haliburton, Ont., said the number of Canadians visiting his bed and breakfast began dropping last year, but fell significantly this year.

“Very few Americans are now staying at our place and we see very few American license plates around town,” he said. “Tourism is down anyway, but particularly from the United States.”

Hicks said Americans have told him a trip to Canada isn’t a bargain anymore, and the difference in gas prices acts as a double-whammy.

“That’s a big whack to them when they drive up here in their SUVs and their Hummers,” Hicks said.

The number of U.S. visitors to Ontario is at a 30-year low and is expected to plummet further once passports are required at land border crossings.

Tourism experts predict once passports are required at land border crossings, U.S. trips north will nosedive by 14.1 million a year, leading to a revenue loss of $3.2 billion.

In June, U.S. officials issued a reprieve on passports for people entering at land and sea crossings until at least the summer of 2008. The new rules were supposed to go into effect in January.

But it’s not just businesses in the Canadian tourism industry that are worried about the new passport regulations. American tourism officials as far south as Florida are also concerned about the impact.

“Everybody is being cautiously optimistic and we realize there are negative things beyond our control, with the new passport regulations … and confusion about that,” Forrow said. “Hopefully the lure of the stronger dollar will overcome any perceived difficulties.”

AP-ES-10-04-07 1709EDT