Canadian shoppers may be heading south of the border to take advantage of a rising dollar, but exporters and the tourism industry are feeling the pinch.

As the loonie inches closer to parity, some Canadian companies are losing their competitive advantage, no longer able to sell their products to Americans looking for a good deal.

In Southern Ontario, wineries are afraid American tourists will stop visiting.

"At one point, years ago before 911, probably 40 per cent of our visitors were from the U.S.," Del Rollo, of the Jackson Triggs winery in the Niagara Falls region, told CTV News.

"I would say it's dropped as low as 12 to 14 per cent of our visitations."

In fact, overall tourism from Americans in the area is at an all-time low.

"The 42 per cent decline is the largest decline we've seen since we've been keeping records," said Niagara Falls Mayor Ted Salci.

Bank of Canada governor David Dodge has warned he may raise interest rates on July 10 to help fight inflation. If that happens, it could further boost the dollar, making it even harder for exporters and the tourism industry.

On Friday, the loonie closed at 93.49 cents US.

This week, finance ministers from Canada's provinces pushed Dodge for a lower dollar.  

"For every cent the dollar rises, it costs Alberta $123 million," in reduced revenues from oil and gas exports, said Alberta Finance Minister Lyle Oberg on Wednesday in Meech Lake, Que.

Ontario Finance Minister Greg Sorbara agreed.

"Certainly, we would like to see a lower dollar," he said.

"We understand, I think the governor understands, the pressure it puts on people making and selling things around the world."

He added Ontario has lost 140,000 manufacturing jobs in the last four years, and that his government and Ottawa had done their part to encourage manufacturing -- including ending lower taxes and write-offs for new equipment -- but the dollar's rise is crippling the sector.

With a report by CTV's Graham Richardson