Tuesday, March 17, 2009

Strengthening dollar good for travelers
Who would have thought it? While Wall Street plunges, the U.S. dollar surges. And that wholly unexpected rise in the value of the dollar is the biggest news in travel. It has more of an impact on your vacation choices than any other single factor.

The extent of the rise is startling. While most of us are aware that the dollar has risen against the euro and the British pound by 20 to 30 percent, the dollar is up against other currencies by 40 to 50 percent. And it is in countries whose currencies have fallen by startling percentages that a vacation trip has become most affordable for U.S. travelers.

Mexico leads the list. A year or so ago, you received 10 pesos for one U.S. dollar. Today, you receive more than 15 pesos for a dollar. Drug-related violence in Mexico is mostly confined to cities along the U.S. border, leaving the tourist areas (Cancun, the Mayan Riviera, Acapulco, Puerto Vallarta, Mazatlan, Cabo San Lucas) largely untroubled, so Mexico should receive an increasing number of U.S. vacationers.

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