🗺The Real Reason My Country (And Continent) Is Suddenly Packed With Tourists. Hint: It’s More Than The Weather!

On the train I hear the buzz of American accents as my friends and I try and guess where in the States they’re from. But it’s not just England they’re visiting. It’s across the UK! Not to mention Europe at large. I got chatting with a Californian couple who were touring Windsor. I bet they were hoping they’d meet the Queen but I pointed to the flag not being lowered and saw the immediate disappointment on their faces. Anyway, they said they’ve wanted to visit the city for ages and thought they’d take the plunge now. Why – you’ll soon find out! 

When you take a vacation (something tells me we’re all long overdue one!) your first port of call is to figure out where you want to go. You want somewhere sunny perhaps with some tourist-y things to do in case you decide to leave your pool’s loving side. You probably also want a place with good food (right?!) and plenty of choice! Going abroad with one good eatery is bound to get messy. And packed. Oh, and if you’re anything like my friends and I, you’ll want some place that won’t break the bank.

Now that you’ve finally picked your spot the next thing you’ve gotta do is sort out accommodation and flights. Though my friends and I picked the cheapest flights (literally) and worked backwards. But if you’re wanting to spend some more of your dosh, you’re gonna wanna pick out your destination first. Then you can choose where to stay. And voilà, after all that you’re set to go. 

This matters to (the price of) your vacay more than you think! 

But if I told you to consider the strength (or not) of your country’s currency, you’d probably tell me to stop talking economics! What has that got to do with holidays and if you think it has anything to do with it, you’re probably thinking that what difference would a high/low currency make? Ha! All the difference in the world! And let me show you why.

Exchange rates are kinda crucial contraptions. They essentially tell you how much one unit of your currency can buy you in another currency. I’m from the UK, so £1 now gives me $1.21. Nothing to get too excited about cuz back in ’08, one pound would’ve given me more than $2! Oh the good ol’ days. 

When I travelled to NYC back then, my fam and I felt rich. Everything was essentially half price. Now as a Brit travelling to the US it’s become loads more expensive. Plane tickets (and taxes) have gone up while our currency has gone down against the dollar. Which means that each pound buys me less dollars. Blame it on Brexit, our falling-apart-government, economic growth (or lack of) and whatnot. Either way, the problemo is still here: the dollar is getting stronger while much else is falling by the waste side (the poor Yen! Look how weak that’s got).

1 = 1! For the first time in ages. 

Exchange rates are based on all sorts of things but the most important of all is a country’s economic prospects. And you don’t need me to tell you that right now, Europe’s prospects are in the bin (sorry – garbage can!). 

So it’s no surprise then that something crazy just happened. For the first time in 20 years, $1 = €1. This means that European and American currencies cost the same. The dollar is getting stronger and stronger (much to the dismay of literally everyone) while Euros are getting cheaper by the minute. 

A strong dollar is great for tourists because they get way more bang for their buck. Things are cheaper to buy in Euros and all in all, it feels like your money’s been given a pay rise. That makes one of us! So if you’ve always wanted to get your hands on a Louis Vuitton handbag, now’s your chance. Not that I’m advocating you splash thousands on designer swag but you know, only if you wanted to. 

A friend of mine has been wanting to visit Paris for as long as I’ve known her and this summer she finally did it! Her visit turned into a great reality all thanks to a cheaper Euro. 

So now you see how currency’s are super important and not something to ignore when choosing your vacay spot! 

On that note, if you happen to be a lucky American, holding all those precious dollars, enjoy the feeling of your money buying more, not less. Go and give inflation a real run for it’s money! 

So, American readers, indulge in the European sunshine (and cheap money) and explore all that it has to offer. This parity won’t be around forever. At least that’s what all us lot are hoping for.

And for my European readers, now might not be the time to be taking that American road trip of yours! Hang tight. In the meantime, it’s time we explore the beauties on our doorstep. 

Happy holidays! Wherever in the world you may be.

Disclaimer: This blog is not investment or financial advice. It is my opinion only. This blog is not a personal recommendation to buy/sell any security, or to adopt any such investment strategy. Always do your own research before you commit to any investment.