The rising Canadian dollar has helped to create a "perfect storm" of problems for Canada's tourism industry.

Canada already suffers a $4.4 billion annual deficit with the U.S. in tourist dollars. Confusion over regulatory changes to passport requirements for Americans traveling north, border delays, and high gas prices, have already been keeping more and more Americans away from Canada.

A spike in the loonie will likely make matters worse, Chris Jones of the Tourism Industry Association of Canada told CTV.ca.

The loonie reached 98.51 cents U.S. on Wednesday afternoon after climbing above the 99 cent mark earlier in the day. That's an "adverse development" for the tourist sector, says Jones.

"When the dollar moves toward parity, a certain category of tourist will not come to Canada or will spend less when they're here," he says.

Americans along the border who would normally visit for the day are increasingly staying home or watching their bottom-line once they're here. Overnight visitors and those who stay for several days or weeks are less likely to be affected by a rising loonie.

Jones says Canada's tourism industry needs to re-adjust its strategy and "re-brand" Canada to increase the flow of American tourists.

"We should be presenting a different image of Canada," he says. "We're not just a land of moose, mountains, and maple syrup."

Jones wants the sector to focus on letting Americans know that there are other reasons to visit Canada. He says the tourism industry needs to focus on areas such as adventure, sports, and culinary and wine tourism.

Jones adds that highlighting unique niche markets will cater to a new, younger generation of tourists that has not been as likely to visit Canada as older baby boomers. He says that could offset at least some of the negative effects of a strong Canadian currency on our tourism industry.