As Prices Increase, We Americans Start Spending
Tourism Between The U.S. and Europe’s Affluent To Escalate Despite Out Weak Dollar
For Americans visiting Europe this summer, the steep decline of the dollar against the euro and the British pound has made eye-popping prices a lamentable part of the traveler’s tale. By now, five summers after the dollar began its long swoon against the euro and the pound, American travelers are used to $5 cups of coffee and triple-digit dinner checks in Europe’s great capitals. But the dollar’s latest plunge — to $2.05 to the pound and to a record of $1.38 to the euro — has turned mere sticker shock into a form of suspended disbelief for many tourists. The tourism statistics in France, Germany, Spain and other countries, which show that the number of Americans visiting Europe has increased this year, even as the value of the dollar has eroded. Travel experts say this speaks both to the resilience and rising affluence of American tourists, as well as to the perennial appeal of Europe as a destination. Imagine if Europeans made an “American Vacation” movie (as opposed to Chevy Chase’s “European Vacation“).
“Americans who visit Europe tend to be more educated, with higher incomes, so they are less affected by the exchange rate,” said Joachim Scholz, a researcher at the German National Tourist Board. “Even backpackers have more money than they used to, if you look at the price of hostels.” Americans spent $3.8 billion on travel-related services in Europe in the first quarter of this year, a 5.5% increase from the quarter a year ago, according to the Bureau of Economic Analysis. They spent $22.8 billion in 2006, nearly 10% more than in 2002.
Across the Atlantic, the weaker dollar has encouraged a European travel boom to the United States. The currency squeeze is toughest on Americans who live in Europe and are paid in dollars. They suffer from erosion in their real income that, in many cases, is not fully compensated by their employers.
