The effects of the euro crisis on tourism: understand the consequences
The low dollar may have created a unique opportunity to visit Europe for very little money! Read this article to understand how the euro crisis affects tourism.
by José Gonçalo
Euro-dollar parity: is it good or bad for tourism?
Are you worried about the effects of the euro crisis on tourism in recent weeks? A curious fact has caught the attention of those who follow market indicators.
Thus, for the first time in 20 years, the price of the dollar has become equivalent to that of the euro. Indeed, this euro crisis has direct effects on sectors of the economy such as tourism.
However, this is the mark of the currency crisis that Europe’s most important currency has been suffering since the beginning of the year.
Euro has reached parity with the dollar for the first time in 20 years
The euro and the dollar are at parity value. Understand how to take advantage of this context and why it can be dangerous for the economy.
In recent days, the euro has not only equaled its value to the dollar, but it has also been lower. In the last week, the price of the euro has fluctuated around a level of $0.98.
This means that if you went to a currency exchange yesterday with $100 dollars, you would walk away with approximately €102. In fact, the difference may seem small.
However, it is enough to drastically affect sectors directly linked to the exchange rate and export/import of products/inputs. Among these, we highlight the tourism sector.
In fact, any change in the price of the dollar against the euro makes travelers wary.
However, this time we have good news for travelers? Indeed, is it time to pack your bags to enjoy the European summer?
Read this article and find out. However, before you start, a word of advice: dust off your passport!
What is the euro crisis and how has it affected the tourism market?
Indeed, to understand the effects of the euro crisis on tourism, it is important to understand the background of the world economy today.
As you all know, we have just gone through one of the most critical periods of the pandemic.
We were forced to stay indoors while bars, restaurants and shops were closed (some of them for good). Now that the economy is back up and running, there are still problems to be overcome.
In fact, many countries still face difficulties in re-establishing their supply chain. In fact, this is a common problem in both the eurozone and the US.
However, the difference is that Americans re-established their consumption pattern faster than Europe. Furthermore, the effects of the Russo-Ukrainian war were felt much more in Europe than in the rest of the world.
In this way, the uncertainties surrounding this conflict and the “ghost of recession” that haunts Europe have made people less confident in the euro.
Across the Atlantic Ocean, despite the problems, the US appears to be economically healthier.
As a result, investors began exchanging their euros for dollars, which caused the value of the euro to plummet.
In practice, for American tourists interested in going to Europe, this means that the American currency is appreciated.
Thus, American tourists can consume more on the old continent by paying fewer dollars.
However, life for European tourists in America gets more complicated. Now, those will need more euros to enjoy their holidays here.
How the Russia-Ukraine war can affect the Stock Market
The Russia-Ukraine conflict already affecting the international stock market. Click and learn how to manage your money in this scenario.
You will be redirected to another website
Is it a good time for Americans to travel?
Thus, the main effect of the euro crisis on tourism for Americans is the stimulus to travel to the European continent. Also, the good news for travelers is that this state will last for quite some time.
According to Robin Brooks, chief economist at the Institute of International Finance, the trend is for the euro to be below the dollar for years.
So, in terms of exchange rates, this is the best time of the century to travel to Europe.
However, the problem now is the price of air tickets and the reduction in the offer of flights due to the lack of professionals in the air sector. These factors can make your trip much more expensive.
To understand what is happening with airline ticket prices and when they will return to normal, check out our post below!
Why are airline prices so high right now: the underlying reasons
Have you ever wondered why are airline prices so high? We have the answer! Find out what's behind the rise in ticket prices.
The debt avalanche method: what it is and how to use it
Debt avalanche method is one of the best strategies to pay off debt. But do you really know how this thing works? Find out here!Keep Reading
Regions Life Visa® Credit Card: check out how to apply!
Want to apply for Regions Life Visa® Credit Card? Great. Read on and learn how to enjoy this product. Including 0% intro APR.Keep Reading
Mission Money™ debit card full review: should you get it?
The Mission Money™ is a great no-fee debit card. Find out how this card can save you money and provide you with many benefits!Keep Reading
You may also like
Apply for the VA Survivors Pension: find out how
Apply to VA Survivors Pension, which guarantees military veterans more quality of life and financial aid. Keep reading and learn more.Keep Reading
Capital One Quicksilver Secured Cash Rewards Card: check out how to apply!
Learn how to apply for the Capital One Quicksilver Secured Cash Rewards Card, the credit-building card that gives unlimited rewards.Keep Reading
Buy cheap American Airlines flights: easy step by step
Buy cheap tickets for flights on American Airlines, a company that allows you to book 24 hours while you search for cheaper flights!Keep Reading