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How will the recession effect travel?

Travel Forums General Talk How will the recession effect travel?

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11. Posted by Sam I Am (Admin 5588 posts) 8y Star this if you like it!

Norway's currency is now the cheapest it's ever been against the Euro and it's a full 25-30% against the dollar too. Hopefully that will mean some more tourists visiting this beautiful country again - they had a terrible summer this year I heard, mostly due to the really weak dollar.

12. Posted by truesound (Budding Member 11 posts) 8y Star this if you like it!

Hi Jacaranda

Im already travelling in India, Ive got Sri Lanka, Hong Kong, Thailand, Cambodia, Laos and Malaysia left which will mean i finish around march time. Already ive lost money, before we came travelling the Thai Bhat was at around 75thb to the 1pound, now its down to 55thb per pound!!! India isn't so bad, we we started travelling in August (just before the recession) it was around 80rs-85rs now its at 79rs to the pound. so we havent done to badly! No one knows if the recession will still be going on we you come to go travelling im hoping that it stops before we get to thailand if not im going to be very short of cash!

Id suggest getting a few travellers cheques in euro and dollars that way you've got some back up cash which will be at a better exchange rate then the pound is

other than that save up as much money as you can before you go!!!

13. Posted by wotthefiqh (Inactive 1447 posts) 8y Star this if you like it!

My wife and I were in Japan about this last last year and we were getting almost 100Y to the aussie dollar.
My wife was in the US from June - August this year and was getting something like 90+ US cents per aussie dollar.

On the national (ABC) news tonight the exchange rates were -

One AUD buys 58Y
One AUD buys 61.? US cents.
We were in Bali a few weeks ago and the xchange rate went from 7500 Rup per dollar when we arrived on Sept 20th to 6900 when we left on Oct 4th.
Just checked and it is currently at 6200 Rup per 1 AUD.

I could live with the AUD-Rup drop but losing almost 50% against the major currencies like the USD, Yen, Euro and GBP is a killer.
The US and Europe will probably be out of the question for any holiday till 2010+.
Looks like Bali and all points east (Lombok, Sumba, Sumbawa, Flores) are the go for us next year.

14. Posted by Erik85 (Respected Member 274 posts) 8y Star this if you like it!

I'm not a huge buff but I did some basic units in it and have a bit of an interest.

When most reports are on the recession affecting the travel industry, they mean it in terms of the savings/disposable income people are getting. For example, people's savings in shares decreasing by 40% or whatever = they might have to cancel holidays.
Assuming your savings are still safe and you are relatively employable and get get work for when you get back - you should be fine.

At the moment it's the financial markets in developed/globalised economies in trouble, which is currently flowing on to big corporations cutting jobs. There might be a flow on to the developing countries in future, as they provide many of the World's imports. But you aren't working or earning an income in these I don't think theres any cause for concern. Only perhaps in the long term and indirect case of poverty/crime/social unrest increasing, but us travellers don't tend to fear about that! (its often not directed at us anyway)

In a lot of cases it can even be better as those in the tourism industry will lower prices when theres less tourists around (if other travellers who have lost jobs/have mortgages etc cancel their holidays).
Slow economy = low inflation = cheaper prices in the general economy as well. Although in developing countries they tend to inflate the tourist prices anyway

In terms of the money markets, if countries decide to decrease interest rates (to act against the crisis and stimulate growth), then usually their dollar will go down (as foriegn investors take their money out of that country and put it elsewhere).
This is what has happened with Australian recently - we put our interest rates down a huge 1% so people/companies have put their investments elsewhere making the demend for AUD lower. My finance friend told me that those who have been borrowing yen, and putting it in Aussie accounts have pulled out of this, which explains the extreme case with AUD:Yen.

Anyway, this is all very broad scale stuff, and if your personal situation is fine and the exchange rate hasn't gone to shit then there's no reason to be concerned. The GBP has taken a bit of a beating but not as much as us.
Most of the countries you listed are not quite as exposed to the global markets (except iceland, maybe eastern europe/china/india for which the crisis may flow on to in future)

Hope I didn't crap on too much


[ Edit: Edited on Oct 27, 2008, at 10:21 PM by Erik85 ]

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