Options traders look at Greeks one way. Vacationers look at them another way. Here’s what you need to know about the Greeks for vacationers this year:
They are having trouble getting their economy going, especially to the satisfaction of European Union officials. Meanwhile, the Bank of England has been forced to confirm that it has been researching the effects of the UK leaving the EU. All of this is putting pressure on the euro, which is now near its historic bottom.
And this leads me to my favorite shopping and traveling tip: go where there are currency crises! In 2000, I did quite a bit of decorating and Christmas shopping online because the euro was worth about $0.85. Provencal fabric for kitchen curtains? Rugby shirts and wool sweaters? Bring them on!
We have planned family trips to such places as Iceland, Mexico, and Aruba based on a weak economy. It’s a little ghoulish, certainly, but that’s why people hate the financial types. We’ve been watching Europe for some time, and this summer, it’s it.
The irony is that if Greece had been on its own currency, the economy would not have had explosive growth. That would have prevented a bust. And, had Greece stayed on the drachma, the currency would have depreciated years ago, bringing tourists in as the economy weakened. Instead, the economy was weak but the currency stayed strong, keeping tourists away.
Tourism isn’t the basis for a strong long-term economy, and it can be exploitative. It has a lot of value, though, especially if done right. If people visit a place and have a great experience, they are more likely to come back. It brings in an influx of money and calls for upgraded local skills in language, construction, and skilled trades. It can lead to better infrastructure and warmer global relations. I live in a neighborhood that’s popular with visitors to Chicago, and it is weird sometimes, but it’s mostly nice.
We’ll be going to Spain this summer, and watching the euro to see where to go next year. Maybe Greece?
