Tourism promotion shift to US
This could be a good time for the region’s tourism operators to increase their promotions in the United States
On one hand, a cheap euro and a decline in the British pound, will make it hard for many Europeans to travel abroad.
At the same time, concerns over European security could be a factor in inducing Americans to plan holidays in Central America, Colombia or Mexico.
As far as exchange rates are concerned, the euro for the last month has been trading in the range of $1.10, down from an average of nearly $1.20 since the beginning of the year.
The British pound for its part has stayed close to a value of $1.30 since the Brexit vote last month, compared to around $1.45 during the first half of the year.
With regard to potential destinations for American travelers, it is too early to estimate the impact of recent incidents in Bavaria, Nice and Istambul.
On the other hand, the tourism sector was significantly affected by earlier incidents in Brussels and Paris, according to an announcement last March by U.K.-based Thomas Cook Group PLC.
Investors have for some time been selling shares of various travel and tourism related companies, including Air France-KLM, whose stock price yesterday closed at $5.90, down from $8.62 on March 18.
Shares of French hotel chain Accor were valued yesterday at E37.50, down from $47.50 a year ago.