Now is the time to make travel plans. According to this article, "American travelers are set to save big money on trips across the pond following a sharp slide in European currencies." Two years ago it cost $1.40 to buy one euro and today it is traded at $1.09 and is expected it might drop further in the next few weeks. Similarly, the pound has fallen 8% against the dollar over just last year and is also predicted to continue declining. Other destinations such as Norway and Poland have also become cheaper for Americans; the Norwegian Crown has fallen 10% and Poland's zloty has fallen 6% against the dollar in the past 12 months. These drops are significant and now would definitely be the time to get a great bargain and start planning some journeys.
http://money.cnn.com/2016/03/04/pf/europe-currency-vacation-pound-euro/index.html?iid=SF_River
While it is certainly nice to have travel be cheaper, I am interested to see how more people traveling to Europe could impact the American economy. If more people travel across the pond, then more money will be spent in these countries instead. In addition, with falling prices of imports it is also more likely that the US GDP will fall due to decreased exports. If prices are cheaper elsewhere, consumers will opt to make their purchases from those sources.
ReplyDeleteIt is interesting to see how the loss of value in Europe's euro has been benefiting tourist Americans. It is also worrisome for Europe with the reintroduction of border controls hurting the economy overall. Hopefully due to the drop in cost for foreigners to vacation to Europe, increased tourism profits will help to somewhat ease Europe's economic issues.
ReplyDeleteI am very interested to see in how the weakening Euro and strengthening Dollar affects trade for the US as we continue to expand as an economy. We already know that China has been weakening its currency and has already affected our exports to such a large buyer so any changes to other large players in the global market could possibly hurt us.
ReplyDeleteThis will certainly boost tourism in Europe, as many countries rely heavily on tourism to supplement parts of their economy. Countries not doing so well can expect a summer filled with lots of tourism, especially with the Euros for soccer being held this summer tourism should be booming.
ReplyDeleteIndeed it is great for tourism in Europe, but I'm sure the Europeans aren't too happy about this decrease in their currency.
ReplyDeleteThis is definitely good for tourism in Europe. Americans should start to travel and spend more overseas. It would be interesting to know how and if this actually affects the American and European economies.
ReplyDeleteI am also very curious to see how this affects our trade with Europe, and if the cheapening of their goods will cause a shift from us buying some goods in Europe where we had bought them elsewhere before. Additionally as someone who is planning to go abroad in the next semester, I found this article applicable and positive to learn more about.
ReplyDeleteWith the amount of Americans who travel to Europe, this is beneficial for them. A close to equal exchange rate will make trips to Europe less expensive for Americans hopefully. It would be interesting to look further into what is happening in their economies and determine what factors have led to such a decline in the value of their currency.
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