Table 10. Arrivals and Departures of Residents of Oversea Countries Admitted to the United States as Temporary Visitors, 1938-39—Continued

For various reasons, the aggregates do not agree with the total numbers of alien visitors departing for and arriving from overseas given in table 11, which shows total passenger traffic between the United States and Oversea countries.

Source: Immigration and Naturalization Service, Department of Labor.

Table 11.-Total Passenger Traffic (Excluding Cruises) Between the United States and Oversea Countries, by Class of Traveler, 1938-39 1

Data on departures of United States residents for oversea destinations, including cruise travel, are given by geographic areas in table 3.

For various reasons, the total numbers of alien visitors departing for and arriving from overseas, as given, differ from the totals in table 10, which shows residents of individual oversea countries admitted to the United States as temporary visitors.

Source: Based upon records of Immigration and Naturalization Service, Department of Labor.

Table 12.-Passengers Carried Between the United States and Oversea Countries, by Class of Traveler and by Registry of Carrier, 1938-39 1

1 Since registry does not necessarily indicate the domicile of beneficial owners, the data do not provide an exact measure of the proportion of passenger revenues arising from travel between the United States and oversea countries which goes to individual foreign countries. The estimates given below, which cover fare payments by United States residents only to foreign-flag vessels (see table 13), are regarded as reasonably accurate in the case of trans-Atlantic travel but as rough approximations in the case of travel to other areas and cruise travel:

Table 13.-Gross Revenues of United States and Foreign Vessels From Passenger Traffic Between the United States and Oversea Countries, by Geographic Areas and by Class of Traveler, 1938-39

IV. UNITED STATES-CANADIAN TRAVEL ACCOUNT

The expenditures of United States travelers in Canada and of Canadian travelers in the United States regularly comprise one-half, or more, of combined international receipts and payments for travel between the United States and the rest of the world. In 1939 these aggregate international expenditures for travel between the two largest North American countries (expenditures which exceed by far those involved in the interchange of tourist accommodations between any other two countries of the world) were $349,000,000, of which $256,000,000 represented outlays by United States travelers in Canada and $93,000,000 the expendi1 Prepared by Allen H. Lester, of the Finance Division.

tures of Canadians in this country. (See table 14 and fig. 6.) The $349,000,000 represented 55 percent of the $639,000,000 combined payments and receipts for travel between the United States and the rest of the world in 1939. The corresponding proportion during 1938 was 53 percent. This $349,000,000 was also equivalent to the value of 42 percent of aggregate merchandise trade between the United States and Canada during the year. United States-Canadian travel expenditures during 1938 equaled half of the value of merchandise trade between the two countries during that year.

Table 14.-United States-Canadian Travel Account, 1938-39 1
[In millions of U. S. dollars]

1 Data for previous years, although in various ways not comparable, will be found in The Balance of International Payments of the United States in 1938, p. 37, and in earlier issues.

2 Expenditures by many "local" motorists are unavoidably included in the account of "other travelers" for 1938, but 1939 expenditures by "other travelers" include expenditures by many local motorists through June only. This is a necessary result of shifts in the classification of volume-of-travel data at their source. It should be possible to make reasonably comparable estimates within the "motorist" and "other traveler' accounts for these years after the new series has been continued for a period in its present form. Since the change involves only a shift in the account to which a portion of the total volume of travel is assigned, the data on volume of travel upon which the entire United States-Canadian travel account is based are not, as a result, incomparable as a whole for the two years.

3 Rough exchange adjustments from Canadian currency figures, to give a total of $93,000,000 United States money spent by Canadians in the United States during 1939, are reflected in the United States dollar amounts shown in the Canadian motorist and rail accounts.

The long frontier between the United States and Canada, the proximity to the border of centers of population, the cooperation of both countries in keeping border formalities at a minimum, and, in the case of motor travel, the excellence of highways in both countries are factors which have contributed to the importance of traffic across the northern land border of the United States. Motorists' expenditures for travel between the two countries overshadow those of travelers who cross this border by any other type of transportation.

The decrease during 1939 of expenditures in Canada by United States residents, and of expenditures in the United States by Canadian residents, was in neither case a reflection of the trend of industrial activity, which in both countries was at a higher level throughout the year than during 1938. It can be surmised that the same factors which during 1939 considerably reduced travel expenditures between the United States and Europe and the Mediterranean area were connected, to a somewhat smaller degree, with the less marked decline in United States-Canadian travel expenditures.

For the 8 months through August 1939 the number of cars recorded as entering Canada from the United States on 48-hour permits was only 2.8 percent less than for the corresponding months of 1938. The remaining months of 1939, during which Canada was at war, showed a decline of 8.2 percent in the number of cars entering Canada on 48-hour permits, however, as compared with the 4 final months of 1938. Cars entering Canada on 60-day or 6-month permits during the first 8 months of the year were 2.6 percent more than in 1938, but during the last 4 months of 1939, 5.2 percent less. The actual outbreak of war appears to have had less deterring effect upon travel to Canada than upon travel to Europe, and the same may be said regarding the fear of war-which, despite its realization, did not prevent a small increase for the entire year in the number of 60-day

and 6-month cars entering Canada from the United States. The more significant influence, however, upon total expenditures of motorists—the most important type of traveler to Canada in effect upon expenditures—was a decline in their average expenditures, as mentioned below.

Canadian travelers' expenditures in the United States during 1939 $93,000,000— were down 8 percent from a revised estimate of $101,000,000 for the previous year. This percentage decline was much less than that shown in expenditures overseas of Canadian travelers as reported by the Dominion Bureau of Statistics,2 which fell off during 1939 by one-quarter of corresponding expenditures in 1938. Expenditures overseas by United States residents similarly decreased by onequarter, as shown in table IV; but travel payments accruing to the United States from visitors from overseas, on the other hand, increased by practically onequarter. The result of these various trends was an increase during 1939 in the proportion which travel moneys interchanged by residents of the United States and Canada represented of moneys paid and received by residents of these two nations for interchange of travel with all foreign countries.

Considering travel between Canada and the United States according to method of transportation, it will be noted from table 14 that the automobile-travel account was the chief one which brought expenditures down for both Canada and the United States. Declines in average expenditures of United States motorists, both on long and on short stays, contributed largely to this drop in expenditures by motorists. There was recorded a trifling increase in the number of cars in the important group for which permits for stays in Canada of more than 48 hours were issued. This group regularly provides the largest part of automobile travelers' outlays. The number of cars not covered by such permits (a group numerically larger but of less importance in effect upon total expenditures) declined by under 5 percent from the corresponding figure for 1938.

The volume of rail and of boat travel to Canada in 1939 rose slightly above that of 1938, with expenditures of rail travelers edging up to $56,000,000 from $55,000,000 and with expenditures of boat travelers remaining at $14,000,000 for 1939, the same as the revised estimate for 1938.

The number of United States travelers to Canada by methods of transportation other than those discussed above was estimated to have increased slightly during 1939 as compared with 1938. Expenditures by this group were placed at $21,000,000 and $20,000,000, respectively, for these years.

Estimated expenditures in the United States by Canadian motorists dropped from $49,000,000 in 1938 to $43,000,000 in 1939. Because of certain changes in the mechanics of recording travel, this figure of $43,000,000 includes some expenditures the counterpart of which for 1938 appears in the account of "other" travelers, so that the decline in expenditures by Canadian motorists is only partly depicted in the automobile account proper. Expenditures of boat travelers from Canada were put at $4,000,000, as against $3,000,000 in 1938. A decrease from $25,000,000, estimated spent by other types of Canadian travelers in the United States during 1938, to $21,000,000 in 1939 was due at least in part to improvement in the volume-of-travel data which effected during 1939 the inclusion in the automobile classification-rather than in the group of "other" travel-of some short-stay automobile travel, as just mentioned.

A description of the manner of estimating the United States-Canadian travel account, as well as other detail, follows.

The method used in estimating expenditures for travel between the United States and Canada consists, in general, of applying estimates of average expenditures by various types of travelers to the number of travelers in the groups to which the expenditure averages pertain. Statistics of volume of travel between the United States and Canada are thus the framework about which it has been necessary to build a system for making estimates. Since the residence of a given traveler determines the country to which his expenditures should be directly attributed, various series compiled by the Dominion Bureau of Statistics which afford this type of information have been found best adapted to the specialized requirements involved in making estimates of outlays by United States residents for travel in Canada, and vice versa. Questionnaires are employed in obtaining average expenditures, in the case of both United States and Canadian travelers, by automobile, train, and boat. During 1939 practically all 1938 averages have been recompiled in order to effect comparability with the averages used in obtaining estimates of expenditures during 1939.

Canada's Tourist Trade, 1939. Canada, Department of Trade and Commerce, Dominion Bureau of Statistics, Ottawa. 1940.