Exchange Rate Slows Tourism to Spain

  • 15 years ago
  • Uncategorized
The drop of the British pound against the euro is resulting in less Britons visiting Spain, one of the most popular holiday and second home destinations for UK citizens. According to recent valuations, the pound has dropped some 22 percent versus the euro over the past year.
In March, 2008, one euro was worth £0.77, while it is now listed at £0.93. That means that it takes more pounds to buy the same amount of goods sold in euros, be it travel fares, accommodations, food, or other items in Spain, France and the rest of the Euro Zone. Add the falling pound to the recession, and this year some are predicting a drop as much as 25 percent in some popular regions of Spain, such as the Costa Blanca.
The Costa Blanca News reports that Benidorm, a well-known resort area for Brits, will see as many as 500,000 less British tourists this year. In one sign of the times, the weather in recent weeks has been very warm, yet the number of tourists is noticeably less than it would otherwise be.
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