The announcement that the Euro was being adopted as standard currency in many parts of Europe created great confusion to tourists a few years back. After all, various European currencies offered different currency exchange rates that affected what travel destinations were most affordable for US tourists.
Over time, however, people have adjusted to this new currency and its effects have started to settle. Let’s look at how the Euro currency affects tourism.
With so much debt in the European economy, there has never been a better time for Americans to travel abroad. The strong US dollar has started to gain on the euro dollar, which is trading at around 20% less than just a couple of short years ago. This means that this is a great time for US citizens to travel to Europe and to purchase European goods and services.
This stronger dollar and the weakening of the Euro have created a major change in American travel habits, to be certain. Business has picked up considerably for travel agents who book to Europe, and Americans are finding better deals than ever on flights to Europe as well as accommodations. This is certainly good for tourism, and overall it may be good for Europe as a whole as they struggle to get out of debt and rebuild the value of the Euro.
One word of warning however – England did not adopt the Euro, and as such it is still powered by the stronger pound. In the last five years there was a point where one UK pound was worth two dollars, and even today if you travel to England from America you’ll find your money is worth up to a third less. Always check British exchange rates at your local bank, or check a good currency conversion site such as XE.com before you travel.
There is no certain way to predict the future of the Euro or how long the exchange rate will remain quite so favorable for US tourists. With that said, however, travel to Europe is certainly much more affordable right now. The Euro may well bounce back, but right now it is creating a prime opportunity for US tourism.