It could be said that while some countries have struggled and scraped by, others have in fact being able to flourish and tourism opportunities have opened up for some European countries.
Whenever there is mention of the Eurozone debt crisis, everyone assumes it is steeped in negativity. However, the delicate balance of the globe means that where one country begins to falter, another begins to flourish. The same can be said for the Eurozone and Europe, especially considering the tumultuous decade that has followed the recession and debt crisis. Indeed, it could be said that while some countries have struggled and scraped by, others have in fact being able to flourish and tourism opportunities have opened up for some European countries.
A favourable EUR USD trading pair can positively impact tourism
The Eurozone saw inbound tourism increase to European countries from places such as Brazil, China and Russia (the BRIC nations) by 2011. Meanwhile, a report from 2012 indicated that Americans also increased their patronage of Europe, as their currency meant it would stretch further against the weakened Euro. As tourism from the USA to Europe increased post-recession, it seemed that good conversion of currency was a factor in their travel plans.
The EUR USD forecast allows tourists to analyse whether they will save money travelling to the region, or should look elsewhere. Economists and tourists alike have long been able to use online resources to predict how each economy will fare in comparison to the other, as major changes occur. A boost in tourism industries can feed back into the economy: tourism around weak economies can increase and, in turn, help the economy rise slightly as more money is pumped into businesses.
However, the Eurozone crisis pattern documented by DailyFX indicates arguably indicates the negative impacts on the economies of Eurozone countries. For instance, November 2018 saw the Italian budget rejected by the EU. This could spell trouble as Italy’s debt of 131% of their national output is second only to bailed-out Greece. Could Italy require a bail-out as Greece did? If so, would this further damage its own and, consequently, the surrounding Eurozone economy?
Tourism might save the day again – but take that with a pinch of salt
Not necessarily: The Guardian referred to tourism as Greece's “lifejacket” in 2017, a year that saw Greek tourism increase by 2.4% (which amounts to £20 million). Some areas even saw occupancy rates of 70%, a significant boost to the economy. A slowing economy made travel to the country more affordable, drawing in tourism which in turn helped boost the economy.
Tumultuous situations for both the UK and USA may, however, cause ebbs and flows in both countries' tourism to the rest of Europe and the Eurozone, regardless of the reduced cost of such trips. Tightening of finances will see tourists looking to travel within their own countries, which will absorb the benefits away from countries such as Greece.
The Eurozone debt crisis is still a volatile topic and one that looks like it could possibly rear its ugly head again. Some countries have continued flying the flag for tourism and the resulting increase in visitors has helped boost their economies but, while Greece has shown that encouraging those from abroad to come and spend can be beneficial, instability across the globe seems to have dampened that effect. The Eurozone crisis has done much to open up tourism, but weakening economies globally may have done more to counteract that.
