Why this summer it is better for you to go on vacation to Argentina than to Vietnam

If you have not yet decided on your summer destination at this point and are planning to leave Europe, take into account the effect of currencies: this year there are countries that have become more convenient than others compared to 2021 and others that will instead make us rise budget.

Thomas Osborne
Thomas Osborne
28 July 2022 Thursday 20:58
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Why this summer it is better for you to go on vacation to Argentina than to Vietnam

If you have not yet decided on your summer destination at this point and are planning to leave Europe, take into account the effect of currencies: this year there are countries that have become more convenient than others compared to 2021 and others that will instead make us rise budget.

Two examples: if you want to travel to Argentina, you should know that your purchasing power will have increased by almost 16% due to the collapse of the peso against the euro, while if you were thinking of taking your backpack and going to Vietnam, it will cost you 13% more expensive than last season.

According to the "Tourism and Foreign Exchange" report, prepared by Ebury, a global fintech specialized in international payments and currency exchange that was released today, one of the consequences of the fall of the euro in recent months will be that "more half of the most popular destinations among Spanish tourists during the summer will be more expensive this year".

This is the case of the United States or Mexico, but it also happens with Morocco, Thailand and Vietnam. In the last 365 days, the euro has depreciated against the currencies of these countries, so now these destinations will be less convenient because Europeans will have to spend proportionally more money (up to 13% more) to get the same goods and services (all this without counting the effect of inflation).

On the opposite side of the balance are the countries whose currencies have been devalued against the euro, making the common currency gain value and, therefore, this year they are destinations to be taken into account by the Spanish. These are countries like Argentina, where the euro has gained almost 16% in recent months (although the hyperinflation that the country is suffering may be an element that weighs adversely on the election).

Considering once again only the currency factor, destinations such as Egypt, Poland and Croatia would continue to maintain their attractiveness. The euro has gained about 4.19% against the Egyptian Lira; 3.97% in the crossing with the Polish Zloty and barely 0.1% against the Croatian Kuna between this summer and the previous one.

The other side of the coin (pun intended) is that Europe is becoming a more attractive destination for tourists from a certain group of countries, who will find the Old Continent cheaper when traveling. This is good news if you have, for example, a restaurant, a beach bar or a hotel and you are wondering where your customers could come from this season.

"Tourists who regularly visit Spain can find in the effect of the exchange rate an ally to save money on their vacations, due to the progressive loss of value of the common currency with respect to their local currencies", emphasizes Duarte Liban Monteiro, Ebury Regional Manager for Southern Europe.

In the case of the United States, which appears as one of the main countries of origin of tourists, its citizens will find this year an additional incentive to visit our country, while the euro has left 13.73 in the last year % against the US dollar, until reaching parity and even having fallen below it at some point. Likewise, our first historical “customers”, the British, will take advantage of the fact that the euro is trading 1.5% lower than a year ago against the pound.

Countries such as Switzerland, Mexico and Brazil, which have also traditionally been issuers of travelers to Spain, have seen how their currencies have appreciated against the euro in the last year. They will be able to enjoy a summer at our borders for less money.

Only Turkish tourists will see the bill for their trips to Spain increase, since the euro has appreciated by almost 80% against the Lira, a victim of the hyperinflation that Turkey is experiencing.