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Exchange Rate Crash Hits Britons 2009 Malta Holiday Plans
| A planned dream of a Disney vacation in Florida, a Caribbean cruise, or a holiday in many European countries has been put on hold for many British families who have seen Sterling - the British currency - slip badly against the American dollar and the Euro. And now countries like Malta who are heavily reliant on tourism from the UK are waiting anxiously to see how many bookings are made in January - traditionally the busiest month for holiday bookings - for next summer. Even low cost flights to Malta might not be enough to stop people revising their 2009 holiday plans. An exchange rate is simply the price of one country's currency expressed in another country's currency. The exchange rate is the rate at which currencies can be exchanged. A good example is that of the British pound and the US dollar. In August the pound bought 2 dollars - in November it was buying less than a dollar and a half - cutting spending money by a quarter for Brits taking a trip to Florida. Many factors help determine the exchange rate of one currency vs. another. Supply and demand is only one of the factors. Each country's government, interest rates and inflation, as well as the stock market are also contributing factors. The most trustworthy locations to exchange money are banks, exchange bureaus and ATMs. Credit cards are a viable way to spend money while travelling internationally because they offer a form of payment in nearly any currency. The dollar and sterling have both been steadily losing ground to the euro. Ever changing exchange rates are going to make international travel more expensive for 2009. Tourists are relying more and more on ATMs to exchange currencies while travelling. Most tourists say this form of exchange bypasses the exchange bureaus that often charge high commissions. Others argue that banks offer the better exchange rate without charging unreasonably high fees. To ensure you receive the best exchange rate at the time of your planned vacation, check with your bank, your credit card company and the exchange bureau. Some credit card companies have begun charging a flat fee for overseas purchases. This fee is charged in addition to foreign exchange fees the customers already pay. When booking your hotel internationally, if you live in the US look for dollar rate guarantees offered by many international hotels. This will help protect you from fluctuations in currency exchange rates. Hotels offering a dollar rate guarantee often book more quickly than those that do not. When possible, try to book your hotel several months in advance to lock in a good monetary exchange rate. Monetary conversions will definitely take their toll on holidaymakers this summer. Tourists will need to be more mindful of when to exchange their currency. As exchange rates change, the overall cost of the international holiday increases. An apartment that would have cost $100 per day six months ago now costs about $120 per day for Americans. Over the course of a 2-week vacation, this could determine the difference between international travel and changing plans entirely. Recent exchange rate changes in favor of the euro could also mean more international visitors to the U.S. and Europe from other areas of the world. If the dollar and sterling continue to fall, new doors could be opened for tourists wishing to visit the U.S. and Europe. Those looking to purchase property overseas will also feel the pinch. Property for sale in Malta for example that previously cost the U.K. purchaser £105,000 now cost £120,000 due to present exchange rates, and any drops in prices are being cancelled out because of exchange rate changes. |
About the Author
More details about Malta and flights to Malta are through yourmalta.com
The Malta travel guide also has holidays in Malta for 2009 as well as a Malta blog
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