May 3, 2008 4:34 pm US/Eastern
Weak Dollar Means Changes For Those Taking Trips
BALTIMORE (WJZ) ―
Vacationers have already done their math, and they're choosing China and India over Europe.
Dennis Edwards reports 25 million Americans will leave the country for vacations this year. That's roughly a 2.6 percent increase over last year.
Marylanders are expected to follow the national trend with almost a half million people traveling to Canada, Mexico, Europe, China and India.
"More and more it seems that Americans are actually applying travel into their budgets and making it happen," said one analyst.
But taking a trip oversees will cost Americans, especially in Europe. The exchange rate is $1.75 per euro. That means you'll spend $175 to get 100 euros.
But for now, Norman Rogers believes the experience is worth the additional cost.
"In the long run, it would be because you're taking your kids with you or bringing something back to your kids. It's an experience something we didn't get, I didn't get growing up," said Rogers.
When you compare the dollar to the euro and then to the Chinese and Indian currency, you see why China and India are more popular this year.
Those countries are an exchange rate bargain since it takes 17 cents of American money to purchase a Chinese Yuan.
In India, the exchange rate is 28 cents for each rupee. That's why travel to China is expected to go up almost 13-and-a-half percent.
Trips to India could jump 13 percent, but ultimately travelers fear the dollar's poor performance internationally will force people to think twice.
"I think in the long run, once they reevaluate it, they're still gonna want to travel cause the benefits outweigh the costs," said Rogers.
Even with the higher exchange rates, travel to Europe will go up this summer where Americans are expected to pay just under six percent more for anything they purchase.
(© MMX, CBS Broadcasting Inc. All Rights Reserved.)
Winter Storm Hits Maryland, Part 3
Click to enlarge
Stumble It!
Comments