The dollar is continuing to fall, with the Euro setting a new high against the greenback this week. That’s great news for Europeans coming to the US or Canada, but lousy news for anyone going the other way. What was already an expensive part of the world has become even pricier.
I’ve recommended before that bargain hunters sign up for Smarter Travel’s Newsletter. You not only find out what airfares have gone on sale from your own city, but you also benefit from the writings of dedicated travel bargain hunters who write regular columns.
One of them, Ed Perkins , is an expert on senior travel deals, but he’s also an all-around help for navigating the international travel scene. Before giving some advice on how to pinch pennies in Europe this summer, here’s how he summed up the exchange rate situation:
“Expect sticker shock when you get there. When I was last in Europe, about two years ago, I got one euro for about 90 cents U.S.; now it takes about $1.16. That’s a net decline of close to 25 percent in the purchasing power of the dollar. And it translates into a significant price hike, by just about anyone’s standards. The UK, always an expensive destination, will be a real challenge to budget travelers.”
So what do you do if you’ve always dreamed of seeing interesting architecture, coffee houses, great museums, and a sense of history? Head out of the EU. Until May 1, 2004, you can still change your dollars into local money in the Czech Republic and Hungary, two of the countries featured in The World’s Cheapest Destinations. Two of the others, Bulgaria and Turkey, don’t look likely to join anytime soon. True, these countries are tied to the EU economically, so your dollars still won’t be worth what they were a couple of years ago, but since they’re starting at such a low base of comparison, they’re still a screaming bargain.
Of course if you head to Latin America, where most economies are tied to the dollar, it won’t really matter what the Euro is trading at…
