Canada and Florida: An Economic Impact Study

Presentation to the Presentation to the Metro Orlando Economic Development CommissionMetro Orlando Economic Development Commission

March 11, 2009March 11, 2009

Canada is …

Two way trade partner valued at $8.6 billion and averaging 10.4% annual growth since 2003

Florida’s #1 source of in-bound tourism

The #2 destination for Florida’s exports after Brazil

A top foreign direct investor and foreign employer in Florida

A loyal purchaser of residential real estate, up 43% from 2004

Highlights

ECONOMIC IMPACT

KEY INDICATORS, US$ bill 2003 2007

Canadian Exports to Florida $2.8 $4.9

Floridian Exports to Canada $2.4 $3.7

Canadian Tourist Spending in Florida $1.4 $2.8

Canadian Affiliate Real Assets in Florida $5.1 $3.0

Canadian Residential Real Estate Purchases in Florida* $1.4 $2.0

*(2004; May 2007-May 2008) TOTAL $13.1 $16.4

Canada Remains Florida’s # 1 International Trading Partner

Merchandise Trade

Floridian exports to Canada jumped 23% in 2007 compared to a 16% average for all countries.

Florida imports more from Canada than any other country (4.9 B).

Ontario and Quebec are the provinces responsible for 70% of the trade relationship.

Canada should surpass Brazil this year as Florida’s top export market.

Canada-Florida Trade Growth Continues to Expand

CANADA-FLORIDA TRADE US$ millions

Merchandise Trade

Canada-Florida trade has averaged 10.4% annual growth since 2003.

Increasing “Integrated” industries indicate supply chain linkages, intra-company trade, and economic interdependence.

Eleven highly integrated industries comprised 28% of total trade, valuing $1.2 billion.

High tech and industrial industries hold the most potential for growth.

Specialized export industries, where comparative advantages exist, comprise around 30% of each partners exports.

Economic Integration Allows for Accelerated Growth

Top Integrated Industries

Motor Vehicles

Computer and Peripheral Equipment

Aerospace Products and Parts

Telecommunications Equipment

Engines, Turbines, Transmissions

Industrial Machinery

Electrical Equipment

Chemical Products

Investment

Canadians invested $ 2 billion in residential real estate in 2007.

Florida represented 1/3 of Canadian real estate purchases made in the US.

Canadians that own property in Florida range as high as 450,000.

The total value of Canadian residential property in Florida could approach $40 billion.

South Florida draws the most buyers, but Canadians play a stronger role than other foreign buyers in Florida’s emerging coastal real estate markets.

Over half of Canadians pay cash.

Canadians Own More Homes in Florida than Any Other Country.

HOME PURCHASES IN FLORIDA By Location, 2006

Source: National Association of Realtors

Investment

Canada owns an estimated 10% of foreign affiliate assets in Florida.

Canadian investment in Florida reported $3 billion in property assets.

Canadian companies are the third largest foreign employers in Florida(432,000 direct & indirect jobs).

Most companies are located in Southeast Florida (47%) and the Tampa Bay area (23%).

Investment clusters include the ICT, aerospace and defense, bio-energy, food products and construction sectors.

Canadian Companies in Florida Enjoy a Large Local Market

Tourism

Canadians spent $ 2.8 billion

Visitor rates have grown at an average of 10% annually since 2002.

Canadian visitor traffic rose 19% in 2007 and showed a 30% increase in the first half of 2008.

Canadian visitor spending has doubled since 2003, and is estimated at $3 billion in 2008.

Visitor origin is heavily concentrated in Ontario (61%) and Quebec (22%).

Canadians are Big Spenders

Tourism

Short-term leisure travelers staying 1-2 weeks comprise the majority of visitors

Business travelers account for about 10% of visitors.

Snowbirds, estimated to comprise 25% of travelers, spend over 30 nights.

Visits are highly concentrated in the first and coldest quarter of the year.

64% of Canadians arrive by air.

Rising Snowbird Populations Create a Pull South

Source: Statistics Canada

Looking ForwardStrong Fundamental Dynamics

Canada – Florida fundamentals are still strong

Canada to continue to be source of growth for Florida, including partnership on infrastructure

Tourism: Canadian travel to Florida in 2008 increased by 14%. Compared with 2.3% decline in total number of visitors.

Trade: Potential in clean-tech/environment sector: green building, bio-energy and alternative energy.

Investment: Canadian companies still poised for expansion and Florida provides double-value as Gateway to Americas