NOTE
Policy Department
Structural and Cohesion Policies
THE EXCHANGE RATES OF THE EURO
VS OTHER MAIN CURRENCIES
AND THEIR IMPACT ON EU TOURISM
TRANSPORT AND TOURISM
June 2007
EN
Directorate General Internal Policies of the Union
Policy Department Structural and Cohesion Policies
TRANSPORT AND TOURISM
THE EXCHANGE RATES OF THE EURO
VS OTHER MAIN CURRENCIES
AND THEIR IMPACT ON EU TOURISM
NOTE
Content:
This note examines exchange rate changes between the Euro and five other key
currencies: the US dollar, Japanese yen, Chinese yuan, Russian rouble, and British
pound. It is analysed if exchange rates have had a measurable impact on the flow of
tourists from each of the five key currency counties to Europe (in particular the Euro
area).
IP/B/TRAN/IC/2007-007
PE 379.231
18/06/2007
EN
This note was requested by the European Parliament's Committee on Transport and Tourism.
This paper is published in the following language:
- Original: EN.
Author:
Kevin MILLINGTON
Acorn Consulting Partnership Ltd
Responsible Official:
Nils DANKLEFSEN
Policy Department Structural and Cohesion Policies
European Parliament
B-1047 Brussels
E-mail: ipoldepb@europarl.europa.eu
Manuscript completed in June, 2007.
This note is available on the Internet at:
http://www.europarl.europa.eu/activities/expert/eStudies.do?language=EN
Brussels, European Parliament, 2007.
The opinions expressed in this document are the sole responsibility of the author and do not necessarily
represent the official position of the European Parliament.
Reproduction and translation for non-commercial purposes are authorized, provided the source is
acknowledged and the publisher is given prior notice and sent a copy.
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
Executive Summary
1. For the purposes of this briefing paper, the exchange rates of the following five currencies have
been chosen for analysis against the euro: the US dollar, Japanese yen, Chinese yuan, Russian
rouble, and British pound.
2. Although there have been fluctuations in the exchange rate between the euro and the five
currencies identified for analysis, generally speaking the euro has strengthened against all five
over the period 2001-2005. This means that residents of the United States, Japan, China, Russia
and the United Kingdom need to spend more of their own currency to buy one euro.
3. With the exception of the British pound, the strengthening of the euro against the other four
currencies was similar – that is between 23% and 28% when comparing the exchange rate in
January 2001 and December 2005. By comparison the euro only strengthened by around 8%
against the pound.
4. Tourist arrivals in the euro area from the United States and Japan declined over the period 20012005, whilst arrivals from China, Russia and the UK increased. Growth in the China market was
substantial, largely due to a considerable number of European destinations acquiring an
Approved Destination Status (ADS) from the Chinese government over the period, thus opening
up their countries to Chinese travellers.
5. Analysis of the exchange rates between the euro and the five currencies, and the corresponding
tourist flows between the source destinations and Europe (but particularly the euro area),
indicates that there is no conclusive evidence that the increasing strength of the euro over the
period 2001-2005 has had a negative impact on inbound tourism.
6. A large number of studies undertaken over the last 30 years indicate that exchange rates do affect
the flows of tourists between countries, however their influence is usually smaller than other
factors such as the cost of living at the destination, the cost of transport to the destination, and
non-monetary factors such as safety. Also, the volume of trips is not always affected by
exchange rates, but instead the behaviour of tourists at their destination – most commonly
displayed by a shorter length of stay and/or lower average daily expenditure.
7. As a consequence of the relatively minor influence of exchange rates, it is likely that only in
situations where all other factors that affect tourist flows remain equal, would exchange rates
have a measurable impact on the destination choice of tourists.
8. There do not appear to be any examples of national or regional tourism administrations
developing or implementing policies or action plans to respond to adverse or positive changes to
exchange rates. However, it is common for the tourism trade (such as tour operators) to establish
their contracts (for example with hotels) with fixed exchange rates.
iii
PE 379.231
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
9. National and regional tourism administrations can benefit from fluctuating exchange rates, in
particular minimise the effects of a strong euro, by targeting those markets that are less sensitive
to exchange rates (such as business travellers and higher spending tourists), increasing marketing
activities in destinations whilst exchange rates are favourable (and therefore less expensive), by
ensuring they do not rely too heavily on one market, and developing a unique product that
ensures tourists do not have a viable alternative. Alternatively, a weak euro could offer the
opportunity for destinations to attract border crossers and day-trippers, as these are known to be
most likely to respond to currency fluctuations.
PE 379.231
iv
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
List of figures
Figure 1.
Exchange Rates 2001-2005: Euro vs US Dollar ...............................................................3
Figure 2.
Exchange Rates 2001-2005: Euro vs Japanese Yen..........................................................4
Figure 3.
Exchange Rates 2001-2005: Euro vs Chinese Yuan.........................................................6
Figure 4.
Exchange Rates 2001-2005: Euro vs Russian Rouble ......................................................7
Figure 5.
Exchange Rates 2001-2005: Euro vs British Pound .........................................................9
Figure 6.
US: Percentage Change in Exchange Rate and Arrivals.................................................12
Figure 7.
Japan: Percentage Change in Exchange Rate and Arrivals.............................................14
Figure 8.
China: Percentage Change in Exchange Rate and Arrivals ............................................15
Figure 9.
Russia: Percentage Change in Exchange Rate and Arrivals ...........................................17
Figure 10. UK: Percentage Change in Exchange Rate and Arrivals ................................................18
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
List of tables
Table 1. US Tourist Arrivals in All Types of Accommodation ......................................................11
Table 2. Japanese Tourist Arrivals in All Types of Accommodation .............................................13
Table 3. Chinese Tourist Arrivals in All Types of Accommodation...............................................15
Table 4. Russian Tourist Arrivals in All Types of Accommodation...............................................16
Table 5. UK Tourist Arrivals at International Borders....................................................................18
PE 379.231
vi
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
TABLE OF CONTENTS
Page
Executive Summary ......................................................................................................................... iii
List of figures ......................................................................................................................................v
List of tables...................................................................................................................................... vi
1.
Introduction ................................................................................................................................1
2.
Exchange Rate Fluctuations: 2001-2005 ..................................................................................2
2.1. Overview ..............................................................................................................................2
2.2. The US Dollar ......................................................................................................................2
2.3. The Japanese Yen.................................................................................................................2
2.4. The Chinese Yuan ................................................................................................................2
2.5. The Russian Rouble .............................................................................................................2
2.6. The British Pound ..............................................................................................................10
3.
Tourist Flows to Europe ..........................................................................................................10
3.1. Introduction ........................................................................................................................10
3.2. Arrivals from the United States..........................................................................................11
3.3. Arrivals from Japan............................................................................................................12
3.4. Arrivals from China ...........................................................................................................14
3.5. Arrivals from Russia ..........................................................................................................16
3.6. Arrivals from the UK .........................................................................................................17
4.
Effects of Currency Changes on Travel Patterns..................................................................19
4.1. Introduction ........................................................................................................................19
4.2. Key Determinants of Tourist Flows...................................................................................20
4.3. Key Exchange Rate Impacts ..............................................................................................20
4.4. Impacts of Currency Changes in Europe ...........................................................................21
4.5. Policies and Actions to Respond to Exchange Rate Fluctuations......................................21
5.
Recommendations ....................................................................................................................22
Bibliography .....................................................................................................................................23
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
PE 379.231
viii
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
1.
Introduction
There have been numerous studies undertaken over the years regarding the impact of exchange
rates on tourism flows between countries. These studies all have very different outcomes, and there
do not appear to be any common conclusions. However, in general it is widely accepted that
changes in exchange rates do have an impact on visitor flows to various extents.
The value of one currency against another is known as the exchange rate, and discussions about
exchange rate movements can involve a number of different terms that in fact refer to the same
thing. For example, the statements “the dollar is depreciating against the euro” and “the euro is
strengthening against the dollar” mean the same thing, but have opposite implications for
Americans and those Europeans living in the euro area.
An exchange rate quotation is given by stating the number of units of a price currency can be
bought in terms of a unit currency. For example, in a quotation that says the Euro-US Dollar
exchange rate is 1.2 dollars per euro, the price currency is the dollar and the unit currency is the
euro. The usual unit currency varies by geographic location. For example, British newspapers quote
exchange rates with British pounds as the unit currency.
For the tourist, if their currency is strengthening against another currency, it enables them more to
buy more of that currency with one unit of their own currency. Therefore, if a unit currency is
strengthening (or appreciating) - i.e. if the currency is becoming more valuable - then the exchange
rate number increases. Conversely if the price currency is strengthening, the exchange rate number
decreases and the unit currency is depreciating.
This study examines exchange rate changes between the euro and five other key currencies: the US
dollar, Japanese yen, Chinese yuan, Russian rouble, and British pound, over the five year period
2001-2005. The British pound was chosen in addition to the four currencies identified in the brief
due to the importance of the outbound market from the UK. The period 2001-2005 has been
selected due to statistics related to tourism flows only being currently available up to the end of
2005.
The 12 countries that have been within the euro area during the period 2001-2005 have been
selected for specific analysis within this Briefing Paper, these are: Austria, Belgium, Finland,
France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain. Only
Denmark, Sweden and the UK have been included as those countries outside the euro area, as they
have been members of the European Union since 2001.
During the period of analysis covered by this Briefing Paper (2001-2005) there has been a
considerable strengthening of the euro against all five of the currencies of the source markets
selected for analysis, thereby, in theory, making euro area countries more expensive to visit for
Americans, Japanese, Chinese, Russians and the British. If a strong euro does indeed discourage
tourists visiting the euro area, then it is important to address this issue.
1
PE 379.231
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
2.
Exchange Rate Fluctuations: 2001-2005
2.1.
Overview
Although there have been fluctuations over the period 2001-2005, generally speaking the Euro has
strengthened against all five currencies being analysed (the US dollar, Japanese yen, Chinese yuan,
Russian rouble and British pound). This means that for residents in these five countries, they will
need to spend more of their own currency to buy a euro. This would appear to indicate, therefore,
that travelling to any country in the euro area has become more expensive for these residents. This
is usually, although not necessarily, true as will be discussed later.
2.2.
The US Dollar
The average exchange rate of the US dollar to the euro in January 2001 was 0.94 (that is, USD 0.94
bought EUR 1.00). By December 2005, the average exchange rate of the US dollar to the euro was
1.19 (that is, USD 1.19 bought EUR 1.00), a rise of 26.6%. During this period, the euro peaked in
December 2004 when the exchange rate hit an average of USD 1.34 to EUR 1.00, a rise of 42.6%.
The fluctuating exchange rates between the US dollar and the euro are shown in Figure 1.
2.3.
The Japanese Yen
There has been a steady strengthening of the euro against the yen over the period 2001-2005. In
2001, JPY 109.39 bought EUR 1.00, however by December 2005, the euro had strengthened
considerably, with JPY 140.38 buying EUR 1.00 – an increase of 28.3%. The fluctuating exchange
rates between the yen and the euro are shown in Figure 2.
2.4.
The Chinese Yuan
Until 21st July 2005, the Chinese Yuan was pegged to the US dollar. Since then, China has fixed its
exchange rate based on a basket of currencies. However, this means that for the period 2001-2005,
the exchange rate of the yuan and the euro largely reflects that between the US dollar and the euro,
as can be seen in Figure 3. This means that there has been a gradual strengthening of the euro
against the yuan, which peaked in December 2004. In January 2001, CNY 7.76 bought EUR 1.00,
whilst by December 2005, CNY 9.58 bought EUR 1.00, an increase of 23.5%. This peaked in
December 2004 when CNY 11.10 bought EUR 1.00, an increase of 46%.
2.5.
The Russian Rouble
Similar to the US dollar and Chinese yuan, the Russian rouble was at its weakest against the euro in
December 2004. As with all the other currencies, there has been a general strengthening of the euro
against the rouble over the period 2001-2005, starting out at RUB 26.65 for EUR 1.00 in January
2001 and reaching RUB 34.17 in December 2005, an increase of 28.2%. However in December
2004 it reached RUB 37.37, an all time high for the period, corresponding to an increase of 40.2%
on the January 2001 exchange rate. The fluctuating exchange rates between the rouble and the euro
are shown in Figure 4.
PE 379.231
2
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
Figure 1.
Exchange Rates 2001-2005: Euro vs US Dollar
Average Rate: US Dollars to buy 1 Euro
Number of US Dollars required to buy 1 Euro
2001
2002
2003
2004
2005
1.40
Jan
0.94
0.88
1.06
1.26
1.31
1.20
Feb
0.92
0.87
1.08
1.26
1.30
Mar
0.91
0.88
1.08
1.23
1.32
Apr
0.89
0.89
1.09
1.20
1.29
May
0.88
0.92
1.16
1.20
1.27
Jun
0.85
0.96
1.17
1.21
1.22
Jul
0.86
0.99
1.14
1.23
1.20
Aug
0.90
0.98
1.12
1.22
1.23
Sep
0.91
0.98
1.13
1.22
1.22
Oct
0.90
0.98
1.17
1.25
1.20
Nov
0.89
1.00
1.17
1.30
1.18
Dec
0.89
1.02
1.23
1.34
1.19
0.89
0.95
Ave
Source: www.x-rates.com.
1.13
1.24
1.24
1.00
0.80
0.60
0.40
0.20
0.00
2001
2002
2003
US Dollars to buy 1 Euro (2001)
0.96
0.94
0.92
0.90
0.88
0.86
0.84
0.82
0.80
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Oct
Nov
Dec
Oct
Nov
Dec
US Dollars to buy 1 Euro (2002)
1.05
1.00
0.95
0.90
0.85
0.80
0.75
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
US Dollars to buy 1 Euro (2003)
1.25
1.20
1.15
1.10
1.05
1.00
0.95
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
2004
2005
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
US Dollars to buy 1 Euro (2004)
1.40
1.35
1.30
1.25
1.20
1.15
1.10
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Oct
Nov
Dec
US Dollars to buy 1 Euro (2005)
1.35
1.30
1.25
1.20
1.15
1.10
Jan
Figure 2.
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Exchange Rates 2001-2005: Euro vs Japanese Yen
Average Rate: Japanese Yen to buy 1 Euro
Number of Japanese Yen required to buy 1 Euro
2001
2002
2003
2004
2005
160.00
Jan
109.39
117.15
126.20
134.30
135.61
140.00
Feb
106.99
116.36
128.70
134.87
136.56
120.00
Mar
110.33
114.89
128.13
133.06
138.76
100.00
Apr
110.47
115.92
130.23
129.05
138.70
May
106.60
115.86
135.62
134.62
135.34
Jun
104.37
117.85
138.14
132.92
132.18
Jul
107.25
117.12
134.90
134.29
134.74
Aug
109.37
116.38
132.39
134.39
136.00
Sep
108.24
118.73
129.30
134.58
136.14
Oct
109.85
121.57
128.21
136.03
138.09
Nov
108.66
121.72
127.70
136.13
139.61
Dec
113.70
124.23
132.48
139.17
140.38
Ave
108.77
118.16
131.05
134.43
136.85
80.00
60.00
40.00
20.00
0.00
2001
2002
2003
2004
Source: www.x-rates.com
Japanese Yen to buy 1 Euro (2001)
116.00
114.00
112.00
110.00
108.00
106.00
104.00
102.00
100.00
98.00
Feb
PE 379.231
Mar
Apr
May
Jun
Jul
4
Aug
Sep
Oct
Nov
Dec
Ave
2005
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
Japanese Yen to buy 1 Euro (2002)
126.00
124.00
122.00
120.00
118.00
116.00
114.00
112.00
110.00
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Ave
Oct
Nov
Dec
Oct
Nov
Dec
Oct
Nov
Dec
Japanese Yen to buy 1 Euro (2003)
140.00
138.00
136.00
134.00
132.00
130.00
128.00
126.00
124.00
122.00
120.00
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Japanese Yen to buy 1 Euro (2004)
140.00
138.00
136.00
134.00
132.00
130.00
128.00
126.00
124.00
122.00
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Japanese Yen to buy 1 Euro (2005)
142.00
140.00
138.00
136.00
134.00
132.00
130.00
128.00
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
Figure 3.
Exchange Rates 2001-2005: Euro vs Chinese Yuan
Average Rate: Chinese Yuan to buy 1 Euro
Number of Chinese Yuan required to buy 1 Euro
2001
2002
2003
2004
2005
12.00
Jan
7.76
7.31
8.80
10.46
10.86
10.00
Feb
7.62
7.21
8.93
10.46
10.77
Mar
7.52
7.26
8.99
10.15
10.91
Apr
7.39
7.34
8.99
9.92
10.71
May
7.24
7.59
9.56
9.93
10.50
Jun
7.06
7.91
9.66
10.05
10.06
2.00
Jul
7.13
8.27
9.41
10.15
9.90
0.00
Aug
7.46
8.10
9.23
10.09
10.00
Sep
7.53
8.12
9.33
10.12
9.91
Oct
7.49
8.12
9.69
10.35
9.72
Nov
7.35
8.29
9.68
10.75
9.53
Dec
7.38
8.44
10.18
11.10
9.58
7.41
7.84
Ave
Source: www.x-rates.com.
9.38
10.29
10.19
8.00
6.00
4.00
2001
2002
2003
2004
Chinese Yuan to buy 1 Euro (2001)
8.00
7.80
7.60
7.40
7.20
7.00
6.80
6.60
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Oct
Nov
Dec
Oct
Nov
Dec
Chinese Yuan to buy 1 Euro (2002)
8.60
8.40
8.20
8.00
7.80
7.60
7.40
7.20
7.00
6.80
6.60
6.40
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Chinese Yuan to buy 1 Euro (2003)
10.50
10.00
9.50
9.00
8.50
8.00
Jan
PE 379.231
Feb
Mar
Apr
May
Jun
6
Jul
Aug
Sep
2005
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
Chinese Yuan to buy 1 Euro (2004)
11.20
11.00
10.80
10.60
10.40
10.20
10.00
9.80
9.60
9.40
9.20
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Oct
Nov
Dec
Chinese Yuan to buy 1 Euro (2005)
11.50
11.00
10.50
10.00
9.50
9.00
8.50
Jan
Figure 4.
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Exchange Rates 2001-2005: Euro vs Russian Rouble
Number of Russian Roubles required to buy
1 Euro
Average Rate: Russian Rouble to buy 1 Euro
40.00
2001
2002
2003
2004
2005
Jan
26.65
27.00
33.83
36.40
36.65
Feb
26.36
26.84
34.16
36.06
36.40
Mar
21.11
27.25
33.96
34.99
36.44
20.00
Apr
25.76
27.62
33.89
34.99
35.97
15.00
May
25.45
28.65
35.72
34.79
35.49
10.00
Jun
24.87
30.01
35.58
35.26
34.67
5.00
Jul
25.17
31.32
34.50
35.67
34.55
Aug
26.46
30.87
33.87
35.63
35.02
Sep
26.86
31.05
34.48
35.69
34.74
Oct
26.77
31.13
35.27
36.34
34.33
Nov
26.50
31.89
34.87
37.13
33.92
Dec
26.89
32.44
36.18
37.37
34.17
25.71
29.70
Ave
Source: www.x-rates.com.
34.70
35.85
35.17
35.00
30.00
25.00
0.00
2001
2002
2003
2004
Russian Rouble to buy 1 Euro (2001)
30.00
25.00
20.00
15.00
10.00
5.00
0.00
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2005
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
Russian Rouble to buy 1 Euro (2002)
35.00
30.00
25.00
20.00
15.00
10.00
5.00
0.00
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Oct
Nov
Dec
Oct
Nov
Dec
Oct
Nov
Dec
Russian Rouble to buy 1 Euro (2003)
36.50
36.00
35.50
35.00
34.50
34.00
33.50
33.00
32.50
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Russian Rouble to buy 1 Euro (2004)
38.00
37.50
37.00
36.50
36.00
35.50
35.00
34.50
34.00
33.50
33.00
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Russian Rouble to buy 1 Euro (2005)
37.00
36.50
36.00
35.50
35.00
34.50
34.00
33.50
33.00
32.50
Jan
PE 379.231
Feb
Mar
Apr
May
Jun
8
Jul
Aug
Sep
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
Figure 5.
Exchange Rates 2001-2005: Euro vs British Pound
Average Rate: UK Pound to buy 1 Euro
Number of British Pounds required to buy 1 Euro
2001
2002
2003
2004
2005
0.70
Jan
0.63
0.62
0.66
0.69
0.70
0.68
Feb
0.63
0.61
0.67
0.68
0.69
Mar
0.63
0.62
0.68
0.67
0.69
Apr
0.62
0.61
0.69
0.66
0.68
May
0.61
0.63
0.71
0.67
0.68
0.62
Jun
0.61
0.64
0.70
0.66
0.67
0.60
Jul
0.61
0.64
0.70
0.67
0.69
0.58
Aug
0.63
0.64
0.70
0.67
0.69
Sep
0.62
0.63
0.70
0.68
0.68
Oct
0.62
0.63
0.70
0.69
0.68
Nov
0.62
0.64
0.69
0.70
0.68
Dec
0.62
0.64
0.70
0.70
0.68
Ave
0.62
0.63
0.69
0.68
0.68
0.66
0.64
2001
2002
2003
2004
Source: www.x-rates.com
UK Pound to buy 1 Euro (2001)
0.635
0.630
0.625
0.620
0.615
0.610
0.605
0.600
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Oct
Nov
Dec
Oct
Nov
Dec
UK Pound to buy 1 Euro (2002)
0.645
0.640
0.635
0.630
0.625
0.620
0.615
0.610
0.605
0.600
0.595
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
UK Pound to buy 1 Euro (2003)
0.720
0.710
0.700
0.690
0.680
0.670
0.660
0.650
0.640
0.630
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
2005
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
UK Pound to buy 1 Euro (2004)
0.710
0.700
0.690
0.680
0.670
0.660
0.650
0.640
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Oct
Nov
Dec
UK Pound to buy 1 Euro (2005)
0.705
0.700
0.695
0.690
0.685
0.680
0.675
0.670
0.665
0.660
0.655
Jan
2.6.
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
The British Pound
The strengthening of the euro against the pound over the period 2001-2005 has not been as extreme
as amongst the other currencies. In January 2001, GBP 0.63 exchanged for EUR 1.00, and by
December 2005 the euro had strengthened to GBP 0.68, an increase of 7.9%. The Euro was
strongest in May 2003 when GBP 0.71 exchanged for EUR 1.00. The fluctuating exchange rates
between the pound and the euro are shown in Figure 5.
3.
Tourist Flows to Europe
3.1.
Introduction
In order to assess whether the strengthening of the euro has had an effect on the flow of tourists to
Europe, and in particular countries in the euro area, tourist flows from each of the five key-currency
countries have been analysed: that is the United States, Japan, China, Russia and the United
Kingdom. There are several inherent difficulties when undertaking such a task, most if which lie in
the different ways countries (in particular those in Europe) measure tourist arrivals. There are four
main units of measure being used:
•
•
•
•
Arrivals at international frontiers of the country.
Arrivals at hotels and similar accommodation establishments in the country.
Arrivals at all types of accommodation in the country
Number of nights spent in all types of accommodation in the country
Although the different units of measurement allow changes in tourist activity to be assessed from
one year to the next, they prevent aggregation except amongst countries using the same unit.
PE 379.231
10
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
3.2.
Arrivals from the United States
Arrivals at all types of accommodation, from the United States, to the euro area countries
(excluding Ireland and France which measure arrivals differently) declined from 10.1 million in
2001 to 8.7 million in 2003 – a decrease of 14.5%. Arrivals then started to grow again and reached
10.5 million in 2005, as shown in Table 1. Arrivals in France declined considerably over the period
2001-2005, and therefore when including this significant market, even though the base is different
(arrivals are only measured at hotels and similar establishments) there was a reduction of around
one million tourists between 2001 and 2005. Arrivals in the non-euro area countries also suffered a
dip during the period 2001-2005, which was most extreme in 2003, although the decline was less
severe.
Outbound tourist statistics from the United States over the period 2001-2005 are heavily influenced
by the terrorist attacks of 11th September 2001, the Gulf War in 2003, and to a lesser extend the
outbreak of Severe Acute Respiratory Syndrome (SARS), also in 2003. Such major global events
make it very difficult to identify more subtle influences of travel behaviour such as those generated
by exchange rates.
However, Figure 6 (below) shows percentage changes (year on year) for the exchange rate between
the US dollar and the Euro (a negative indicates a strengthening of the euro – that is, one euro costs
more US dollars), as well as changes in the number of tourist arrivals at euro area destinations
(where these can be aggregated) and at non-euro area destinations. If there is a close correlation
between euro exchange rate changes and tourist flows to the euro area, then the blue and red bars on
the chart should point in the same direction. In Figure 6, there appears to be a correlation between
the exchange rate and euro area tourist arrivals in 2002 and 2003, however in 2004, although the
exchange rate improves only slightly for those in the US, there is a significant improvement in
tourist arrivals, with the actual number of arrivals growing for the first time since before September
11th.
Table 1.
US Tourist Arrivals in All Types of Accommodation
Euro area
Austria
Belgium
Finland
France (2)
Germany
Greece
Ireland (1)
Italy
Luxembourg
Netherlands
Portugal
Spain
Euro area total
Not inc Ireland/France
2001
2002
2003
2004
2005
639,271
325,971
101,035
4,501,448
1,923,916
490,084
829,000
3,719,477
26,135
993,000
265,183
1,645,897
15,460,417
10,129,969
512,384
301,280
90,272
3,517,740
1,768,275
365,067
759,000
3,470,134
24,356
886,000
244,622
1,472,392
13,411,522
9,134,782
484,651
274,906
82,822
2,602,455
1,681,350
318,251
809,000
3,289,349
20,587
830,000
216,171
1,458,359
12,067,901
8,656,446
545,945
288,709
93,484
2,895,490
1,925,626
373,143
867,000
4,072,949
22,056
905,000
220,242
1,442,152
13,651,796
9,889,306
548,376
292,050
87,054
3,159,417
1,949,825
581,095
854,000
4,334,644
23,113
971,000
226,732
1,455,436
14,482,742
10,469,325
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
Non-Euro area
Denmark
UK
Sweden (3)
Non-Euro area
(Ex Sweden)
73,861
3,580,000
423,716
65,582
3,611,000
391,795
66,014
3,346,000
364,779
110,464
3,616,000
383,202
122,892
3,438,000
420,944
3,653,861
3,676,582
3,412,014
3,726,464
3,560,892
Notes:
(1) Arrivals at national borders.
(2) Arrivals at hotels and other similar establishments.
(3) Overnight stays in all types of accommodation establishments.
Source: UNWTO.
Figure 6.
US: Percentage Change in Exchange Rate and Arrivals
20.00
15.00
10.00
% change
5.00
0.00
-5.00
2002
2003
2004
2005
-10.00
-15.00
-20.00
Exchange Rate
Eurozone Arrivals
Non-Eurozone Arrivals
Therefore, for the United States, the link between the exchange rate and tourist arrivals in the euro
area does not appear to be strong, although the rather extreme global events over the period 20012003 are likely to have masked any obvious effects the strengthening euro may have otherwise had.
3.3.
Arrivals from Japan
Over the period 2001-2005, tourist arrivals in euro area countries (with the exception of Ireland and
France which measure arrivals differently) declined by an average of 3.9% per annum, although
there was year-on-year growth in arrivals in 2002 and 2004 (if France and Ireland are included the
trend is similar – declining by 2.8% per annum). Arrivals in non-euro area destinations also show
almost alternating years of growth and decline.
PE 379.231
12
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
Table 2.
Japanese Tourist Arrivals in All Types of Accommodation
Euro area
Austria
Belgium
Finland
France (2)
Germany
Greece
Ireland (1)
Italy
Luxembourg
Netherlands
Portugal
Spain
Euro area total
Not inc Ireland/France
Non-Euro area
Denmark
UK
Sweden (3)
Non-Euro area
(Ex Sweden)
2001
2002
2003
2004
2005
255,162
140,057
82,317
1,475,345
779,150
118,515
22,000
1,543,477
n/a
183,000
70,881
576,771
5,246,675
3,749,330
240,146
154,138
74,173
1,521,790
762,471
106,593
22,000
1,815,520
n/a
187,000
95,561
596,382
5,575,774
4,031,984
222,275
114,452
69,063
1,253,753
646,778
94,443
22,000
1,603,479
n/a
139,000
79,726
545,653
4,790,622
3,514,869
256,541
126,523
70,694
1,398,020
715,209
96,208
31,000
1,656,214
n/a
164,000
117,428
578,777
5,210,614
3,781,594
278,686
111,985
70,434
1,459,097
730,232
91,212
19,000
1,657,688
n/a
158,000
98,185
n/a
4,674,519
3,196,422
27,299
289,000
130,350
29,585
320,000
137,598
28,317
273,000
109,557
39,631
242,000
118,177
39,963
269,000
114,935
316,299
349,585
301,317
281,631
308,963
Notes:
(1) Arrivals at national borders.
(2) Arrivals at hotels and other similar establishments.
(3) Overnight stays in all types of accommodation establishments.
Source: UNWTO.
Figure 7 (below) shows that in 2002, whilst the euro strengthens against the yen (meaning that it
costs more yen to buy one euro) there is an increase in arrivals from Japan to euro area countries of
over 7%. It is not absolutely apparent why this is, although following the events of September 11th,
several Japanese tourists might have switched destinations from America to Europe.
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
Figure 7.
Japan: Percentage Change in Exchange Rate and Arrivals
15
10
% change
5
0
2002
2003
2004
2005
-5
-10
-15
-20
Exchange Rate
Eurozone Arrivals
Non-Eurozone Arrivals
In 2003, the euro strengthens further, and this time there is a decline in Japanese tourists to both
euro area and non-euro area countries. The rate of strengthening of the euro against the yen slows
down in 2004 and 2005, although the growth in Japanese arrivals to euro area countries is short
lived (only in 2004), with a decline in numbers again in 2005.
There is clearly no obvious correlation between the euro-yen exchange rate and tourist arrivals in
euro area countries based on the data above, with the shrinking Japanese economy having a greater
effect on the fluctuating demand for outbound holidays.
3.4.
Arrivals from China
China is still very much an emerging market, and therefore the travel patterns observed are very
different to those of the more traditional markets such as the United States and Japan. The
Approved Destination Status (ADS) is a program developed by the Chinese government to establish
a well-managed, orderly and controlled system of travel abroad for its citizens. It is based on a
bilateral agreement whereby a foreign government allows Chinese tourists to travel to its territory.
Essentially, when a country achieves ADS, they can expect to experience an increase in the number
of Chinese visitors who travel for leisure purposes. Most countries in Europe were only awarded
ADS in 2004 (Austria, Belgium, Finland, France, Germany, Greece, Netherlands, Italy,
Luxembourg, Portugal, Spain, Sweden and the UK) and therefore Europe is experiencing a
significant increase in Chinese arrivals at present. Over the period 2001-2005 arrivals from China in
the euro area countries (excluding France) grew by an average of 37.3% per annum.
PE 379.231
14
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
Table 3.
Chinese Tourist Arrivals in All Types of Accommodation
2001
2002
2003
2004
2005
Euro area
Austria
Belgium
Finland
France (2)
Germany
Greece
Ireland (1)
Italy
Luxembourg
Netherlands
Portugal
Spain
Euro area total
Euro area not France
n/a
62,037
24,992
n/a
237,183
n/a
n/a
393,543
n/a
n/a
9,963
n/a
727,718
727,718
n/a
112,652
44,577
n/a
270,459
n/a
n/a
531,449
n/a
n/a
10,662
n/a
969,799
969,799
n/a
107,016
40,755
n/a
268,057
n/a
n/a
480,225
n/a
n/a
9,844
n/a
905,897
905,897
172,361
114,456
49,384
n/a
387,375
n/a
n/a
727,647
n/a
82,000
15,870
n/a
1,549,093
1,549,093
176,777
1,087,702
37,435
472,296
418,235
26,699
n/a
724,444
n/a
96,000
16,577
n/a
3,056,165
2,583,869
Non-Euro area
Denmark
UK
Sweden (3)
n/a
286,000
n/a
n/a
275,000
n/a
n/a
327,000
n/a
n/a
311,000
23,047
n/a
334,000
70,097
Notes:
(1) Arrivals at national borders.
(2) Arrivals at hotels and other similar establishments.
(3) Overnight stays in all types of accommodation establishments.
Source: UNWTO.
Figure 8.
China: Percentage Change in Exchange Rate and Arrivals
80
70
60
% change
50
40
30
20
10
0
-10
2002
2003
2004
2005
-20
-30
Exchange Rate
Eurozone Arrivals
Non-Eurozone Arrivals
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
China is too new a market to be able to assess in terms of the impact of the exchange rate of the
euro on the yuan with other variables such as ADS having a greater impact. Improved living
standards and prosperity is also enabling more Chinese to travel abroad. Figure 8 clearly shows that
despite a small decline in arrivals in 2003, growth has been considerable against the background of
a strengthening euro, although in 2005 the trend was reversed slightly.
3.5.
Arrivals from Russia
Arrivals to euro area countries (excluding France) from Russia have increased from 1.2 million in
2001 to 1.5 million in 2005, and average growth rate of 5.7% per annum (the inclusion of France
makes little difference, generating an average growth rate of 5.9%). This represents strong growth
over the years 2004-2005, as there was little or no growth during 2002 and 2003.
Table 4.
Russian Tourist Arrivals in All Types of Accommodation
Euro area
Austria
Belgium
Finland
France (2)
Germany
Greece
Ireland (1)
Italy
Luxembourg
Netherlands
Portugal
Spain
Euro area total
Euro area not France
Non-Euro area
Denmark
UK
Sweden (3)
2001
2002
2003
2004
2005
n/a
33,535
204,459
258,070
252,611
n/a
n/a
352,370
n/a
57,000
27,318
263,497
1,448,860
1,190,790
n/a
33,039
215,159
313,342
270,138
n/a
n/a
360,373
n/a
48,000
27,369
218,423
1,485,843
1,172,501
n/a
34,061
194,388
325,985
276,781
n/a
n/a
381,340
n/a
53,000
25,762
210,765
1,502,082
1,176,097
n/a
37,700
190,190
301,435
292,840
n/a
n/a
453,064
n/a
61,000
33,997
224,973
1,595,199
1,293,764
109,818
49,176
221,088
339,305
319,026
166,989
n/a
518,828
n/a
69,000
32,022
1,825,252
1,485,947
n/a
n/a
84,444
n/a
n/a
114,054
n/a
n/a
113,137
n/a
n/a
132,016
n/a
n/a
132,536
Notes:
(1) Arrivals at national borders.
(2) Arrivals at hotels and other similar establishments.
(3) Overnight stays in all types of accommodation establishments.
Source: UNWTO.
Over the period 2001-2002 and 2002-2003, the euro strengthened considerably against the rouble,
which means that Russians had to spend more roubles to buy one euro. During this period there was
little or no growth in arrivals of Russians in euro area countries, as shown in Figure 9.
PE 379.231
16
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
Figure 9.
Russia: Percentage Change in Exchange Rate and Arrivals
20
15
% change
10
5
0
-5
2002
2003
2004
2005
-10
-15
-20
Exchange Rate
Eurozone Arrivals
However, in 2004 the strengthening of the euro against the rouble slowed down and in 2005, it
weakened against the rouble. During these two years, arrivals to euro area countries increased
considerably. There is no proof that the exchange rate caused this fluctuation – it is more likely to
have been due to the rising levels of disposable income following strong growth in Russian
economy, together with growing confidence following the end of Saddam Hussein’s regime in Iraq,
or due to a number of domestic issues in Russia itself. However, there does appear to be a
reasonably logical correlation between the euro-rouble exchange rate and visitor arrivals in euro
area countries.
3.6.
Arrivals from the UK
Over the period 2001 to 2005, the number of UK tourists visiting the euro area countries has
increased from 41.8 million to 44.2 million, representing a modest average annual growth rate of
1.4%. Similarly, arrivals from the UK to countries in the non-euro area grew by an average annual
rate of 1%, as shown in Table 5.
The strengthening of the euro against the pound in 2002 and (in particular) in 2003, as shown in
Figure 10 appears to have had no effect on the growth of arrivals in euro area countries from the
UK over the same period, although it could be argued that the growth rate of around 3% would have
been significantly higher if the exchange rate had been more favourable.
In 2004, there was a weakening of the euro against the pound, however at the same time there was a
stagnation of the number of tourists travelling from the UK to euro area countries (i.e. no significant
change in numbers). In 2005, the euro strengthened slightly, and the number of tourists to euro area
countries also declined. These findings for the UK do not correlate to what might be expected, at
least for the period 2002-2004, thus indicating that either the exchange rate between the euro and
the pound has no or little impact on tourist flows from the UK to euro area countries, or that other
factors are obscuring any impacts that are occurring.
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
Table 5.
UK Tourist Arrivals at International Borders
Euro area
Austria
Belgium
Finland
France
Germany
Greece
Ireland
Italy
Luxembourg
Netherlands
Portugal
Spain
Euro area total
2001
(000)
2002
(000)
2003
(000)
2004
(000)
2005
(000)
569
1,738
167
11,959
2,242
3,215
3,930
2,471
69
2,095
1,598
11,790
41,843
725
1,784
146
12,112
2,275
2,958
3,965
2,650
74
2,149
1,779
12,525
43,142
619
1,964
174
11,957
2,140
2,857
3,913
2,905
88
2,145
1,891
13,763
44,416
781
1,799
183
11,602
2,336
2,709
4,125
2,974
95
2,165
1,804
13,833
44,406
769
1,733
146
11,094
2,493
2,435
4,221
3,374
110
2,174
1,855
13,837
44,241
309
413
722
302
379
681
292
381
673
356
375
731
337
414
751
Non-Euro area
Denmark
Sweden
Non-Euro area Total
Source: International Passenger Survey.
Figure 10.
UK: Percentage Change in Exchange Rate and Arrivals
10.00
8.00
6.00
% change
4.00
2.00
0.00
-2.00
2002
2003
2004
2005
-4.00
-6.00
-8.00
-10.00
Exchange Rate
PE 379.231
Eurozone Arrivals
18
Non-Eurozone Arrivals
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
4.
Effects of Currency Changes on Travel Patterns
4.1.
Introduction
A large number of studies have been attempted to determine the effect of exchange rates on tourist
demand, with varying results. In some studies, the demand for international tourism was found to be
highly exchange rate elastic (i.e. changes in the exchange rate between two countries triggered large
changes in tourist flows), yet other studies have demonstrated low elasticities. Further, the statistical
significance of exchange rates as a determinant of tourism demand has been found to be highly
variable.
Indeed, a study by the Economic Intelligence Unit (EIU) 1 on the impact of exchange rate
fluctuations on tourism concluded that “it is probably that it is only in a stable world where all
things remained equal from one year to the next, that changes in exchange rates would have a
measurable impact on tourist choice”.
Most of these studies have examined tourism between pairs of origin and destination countries over
time, although a smaller number have examined the pattern of demand across a range of countries
rather than time – the theory being that tourist flows are affected by more than just one exchange
rate between two currencies (that is, a tourist may choose country A over country B not because the
exchange rate with country B is particularly unfavourable, but because the exchange rate with
country A is exceptionally favourable).
Some studies have shown that different countries are affected to different degrees by exchange rate
fluctuations, i.e. we all react differently. For example a study by the Canadian Tourism Commission
(CTC) 2 showed that a 10% strengthening of the Canadian dollar against the US dollar generates a
16% increase in Canadians’ overnight travel to the United States. However, a 10% strengthening of
the US dollar against the Canadian dollar only increases Americans’ overnight travel to Canada by
4%.
A recent study on the effect of Economic and Monetary Union (EMU) 3 on tourism has concluded
that the elimination of the exchange rates between euro area countries has not been particularly
significant in changing the flow of tourists between these countries. This finding is consistent with
the findings of studies that have assessed the impact of exchange rate changes on other industries,
which have proved to be inconclusive. The EMU effect on tourism seems to be mainly focussed on
other factors such as the elimination of transaction costs arising from the need for exchanging
different currencies, the increase in market transparency, and the expansion of business tourism as a
consequence of the positive impact of the EMU on trade.
1
2
3
Economic Intelligence Unit (1975). Currency changes, exchange rates and their effects on tourism. International
Tourism Quarterly, Special Article No. 18, 4, 34-45.
http://www41.statcan.ca/4007/ceb4007_001_e.htm (accessed 01/04/07).
Review of International Economics (2007), The Effect of EMU on Tourism, Volume 15, Issue 2, 302-312.
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
4.2.
Key Determinants of Tourist Flows
It is important to remember that the factors that affect tourist flows are highly complex. Whilst
fluctuations in exchange rates affect the price of tourist trips, other important price factors include
the cost of living and cost of tourism services in the destination, and the cost of transportation
between the origin and destination. Many studies have tried to evaluate the separate effect of these
three components (exchange rate, cost of living/services, and price of transport) on the basis that
tourists might respond differently to each.
In particular, it has often been suggested that tourists are well informed on exchange rates but have
much less knowledge of price levels in the destination they are visiting. Tourists may base their
decisions prior to departure on knowledge of exchange rates, but might alter their intended length of
stay and level of spending on arrival as they adjust to local currency prices.
Other travel determinants, such as unexpected events, can cause substantial changes in the tourism
economy – and there are several key examples over the period 2001-2005. The events of September
11th had a significant impact on global tourism, as did the war in Iraq in 2003 and the SARS
outbreak in the same year. These events can have such a significant impact of tourist flows that they
obscure more subtle changes caused by shifting exchange rates.
4.3.
Key Exchange Rate Impacts
Previous studies have identified a number of impacts of unfavourable exchange rates. These
include:
•
Less travel abroad or to countries with a different currency.
•
Travel to different destinations: exchange rate fluctuations tend to have a greater effect on
short haul travel (and even more so on day trips) than long haul travel. Countries that attract
a high proportion of long haul tourists (such as Australia) have observed that the impact of
exchange rate fluctuations is limited. Whilst the exchange rate can have an impact on how
much money is spent at the destination, the actual travel decision, which is generally made
months in advance, tends not to be affected.
•
Tourists are more likely to reduce their length of stay or average daily expenditure rather
than decide not to visit a destination.
On the contrary, various reverse effects have been observed resulting from a favourable exchange
rate. These include:
•
Spending on additional goods and services.
•
A shift in travel and spending from other destinations.
•
Attraction of new tourists – that is people who would not have travelled otherwise.
•
Attraction of border shoppers (persons living close to another country travelling for the
purpose of shopping).
PE 379.231
20
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
4.4.
Impacts of Currency Changes in Europe
The analysis of the exchange rates and tourist flows over the period 2001-2005 in Section 3 of this
Briefing Paper shows that there is no conclusive evidence that the increasing strength of the euro
over the period had a negative impact on inbound tourism from the key source markets identified.
There are several reasons for this, the most prominent is the significance of other factors that
influenced tourism over this period: September 11th, the Gulf War and SARS. The impact of these
makes it almost impossible to identify any individual trends due to exchange rate fluctuations.
There are a number of national tourism administrations across Europe that have claimed the weak
US dollar (in particular) is costing the tourism sector a considerable amount of revenue. However,
most of these comments are anecdotal as it is difficult to strictly evaluate the impact that the
exchange rates have had whilst excluding all the other factors.
4.5.
Policies and Actions to Respond to Exchange Rate Fluctuations
There do not appear to have been any reactions to changing exchange rates between the euro and
other key global currencies at an institutional level. National and regional tourism administrations
in Europe have not set out any policies or action plans to respond to adverse or positive exchange
rates.
The reason for this could, in part, be the lack of conviction of the impact exchange rates have on
tourist flows. However it is almost certainly also due to the complex factors that determine tourist
demand, and that it is just one aspect amongst many of which the relevant administrations have
little control.
Nevertheless, it is common for the tourism trade (such as tour operators) to establish their contracts
with fixed exchange rates so that they are not at the mercy of constantly shifting rates. 4
4
A number of studies are referred to in this section. A good reference point for all the key studies undertaken up to
1975 can be found in Economic Intelligence Unit, Currency Changes: Exchange Rates and their Effects on Tourism;
International Tourism Quarterly, Special Article No. 18, 4, 34-45. More recent studies are referenced in Review of
International Economics (2007), The Effect of EMU on Tourism, Volume 15, Issue 2, 302-312.
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
5.
Recommendations
Whilst the national and regional tourism administrations may not be able to control exchange rates,
there are various policies and procedures they could put in place to minimise the effects of a strong
euro and maximise the effects of a weak one.
Minimise the effects of a strong euro:
•
Target those markets that are less sensitive to exchange rates. These are typically business
travellers, long haul holiday tourists, and those tourists buying high quality products (in
particular tailor-made trips and five star hotel seekers – these are less likely to be concerned
about the exchange rate).
•
Increase marketing activities whilst the exchange rate is favourable. Whilst a strong
currency means that inbound tourist may be discouraged from travelling, it does provide the
opportunity for both the national and regional tourism authorities of a country, as well as the
private sector, to buy more advertising space and other promotional activities in the markets
they are attempting to attract for an unchanged amount of euros (or alternatively buy an
unchanged amount of advertising space or promotional activities for fewer euros).
•
Do not rely on one key market. By developing a broad range of source markets for tourists,
the overall impact on the tourism industry due to an adverse exchange rate with one or two
other countries will be minimised.
•
Make your destination unique. A destination that is unique will be less affected by changes
to exchange rates than destinations that differ little from other alternatives.
Maximise the effects of a weak euro:
•
Attract border crossers and day-trippers (or the short break market) – essentially these will
be residents of non-euro area countries such as (at present) the UK and Switzerland –
through targeted marketing campaigns highlighting the benefits of shopping and leisure
trips.
PE 379.231
22
The exchange rates of the euro vs. other main currencies and their impact on EU tourism
Bibliography
Canadian Tourist Commission website:
http://www41.statcan.ca/4007/ceb4007_001_e.htm (accessed 01/04/07).
Economic Intelligence Unit (1975). Currency Changes, Exchange Rates and their Effects on
Tourism; International Tourism Quarterly, Special Article No. 18, 4, 34-45.
Foresight (2005), VisitBritain, Issue 15, January
International Passenger Survey website:
http://www.statistics.gov.uk/ssd/surveys/international_passenger_survey.asp
Review of International Economics (2007). The Effect of EMU on Tourism. Volume 15, Issue 2,
302-312.
Tourism Sector Monitor (2003), Special Focus: The Effect of Exchange Rate Movements on Cross
Border Travel, British Colombia Stats, September 2003.
The Journal of Tourism Studies (1993), Currency Exchange Rates and the Demand for
International Tourism, Geoffrey Crouch, Vol 4, No 2.
Tiago Stock Consulting website: http://www.x-rates.com/.
United Nations World Tourism Organization (UNWTO) statistics website:
http://caliban.wtoelibrary.org/vl=2135673/cl=21/nw=1/rpsv/home.htm.
Visit Scotland Research Bulletin (2006), Dollar Exchange Rate Impact on Inbound Tourism,
December.