The devaluation of the pound sterling against the euro in the last six months has caused an estimated 20 per cent increase in the price of holidays for British tourists choosing the Costa Blanca as a holiday destination.
According to the hotel employer’s association Hosbec in Benidorm, the negative affect is thought to have been caused by the worldwide economic crisis that threatens the whole tourist infrastructure in Spain. They said the exchange rate is making other destinations away from the Mediterranean such as Turkey or Egypt, more viable options for cash-strapped Brits.
The euro was changing hands for 67 pence in June however; yesterday the same euro was costing 81 pence. The US dollar was static at 67 pence the same amount as the euro six months ago due to the pound being very strong against the euro.
In order to fight this negative downturn, the local Spanish companies demanded action from the National, Regional, Provincial and local tourist administration to invest a greater effort in marketing the Costa Blanca in general and Benidorm in particular in Great Britain. HOSBEC have also called for a ‘joined up and concerted effort’ by all businesses big and small to protect their investment.
The weakening of the pound and the economic crisis that is affecting the UK has already caused alarm in the tourist sector of the Costa Blanca that relies heavily on British tourism comprising around 54 per cent (2.5 million people) of the total. The reduction in the numbers is a reflection of deep cutbacks in expenditure by people in the United Kingdom. Thomas Cook announced at the end of September they anticipated a 15 per cent reduction in business during the summer of 2009.
The ‘knock-on’ effects of these economic cuts and losses have been reflected in the activities of the airline company Easyjet. This week they announced their annual profits for the fiscal year September to September were 98.3 million euros down on last year, a drop of 45 per cent! The airline attributed the reduction in profits to the scarcity and relatively high price of fuel, especially in the UK. the low cost airline Ryanair is also struggling. Both airlines connects more than 10 UK airports with resorts like Santiago de Compostela, Asturias, Bilbao, Gerona, Barcelona, Reus, Valencia, Alicante airport, Murcia, Almeria, Granada, Malaga airport, Mallorca airport and Ibiza on the Balearic Islands and Fuerteventura, Lanzarote, Gran Canaria and Tenerife on the Canaries.
Source: Roundtownnews.co.uk
