Strong Dollar – US Tourists are Welcomed in Everywhere

• 03.31.2015, 17:32
•  World

Since European Central Bank has employed its policy of quantity easing, the US dollar increased its value. The plan of Mario Draghi to reach growth in Eurozone is working out. Printed euros (60 billion euros each month) raised the value of euro and vice versa, dropped the value of dollar. It means that the goods and services are much cheaper in Europe now, than in the US markets. Export has increased; the European market is now more attractive for locals as well as for foreigners. As for US, the picture is quite the opposite. Strong dollar is the key to weaken the State economy. Less export, more import, less spending and less investment make the economy less attractive. Despite all these, tourism destination has changed its direction – from US to Europe, Africa and Asia, where the dollar worth much more and with the same amount of money the tourist can buy more quantity of goods and services.

US economy has losses, but US tourist has gains in "dollar – euro" game. One euro costs $1.09, while a year ago it was about $1.40. McDonald’s hamburgers are cheaper abroad than in the States; hotel costs and flight prices to Europe are much cheaper now for US tourist than a year ago. Flights from New York to Paris have decreased by 10% during the recent four weeks. It is possible to find package of trip from Yew York to Paris and back by $519. Some other destinations among Europe; Germany, Italy, Spain, Portugal, Belgium and Austria, are cheaper by 20% than a year ago.

Russia also became very attractive for the US people. One dollar was 35 rubble a year ago, now it is 57 rubbles. Flights from New York to Moscow have decreases by 37% on the year and hotels are cheaper by 45% than a year ago, CNN reports.

Brazil is also favorable destination for the US tourists. Flights from New York to Rio were $1170 last year in March, now it is $856. The Real (Brazil’s currency) has lost its value against the dollar by 30%. Hotel prices decreased by 12% within a year.

South Africa also became close to the US. Flights from New York to Capetown decreased by 24%. The South African’s currency has lost its value against dollar by 13%.

US tourists are happy now, but overall economy in the country will have less output in the long term.