The weak greenback has spawned a slew of articles on its impact on tourism to and from the US with much of the (welcome) attention on the Euro. New York (and the hospitality industry) in particular has benefited handsomely from the Dollar’s steep drop. But currencies seldom move only in one direction and it is unlikely that the Euro will ascend along the continuum it established over the last year. Today’s FT (subscription required) notes that the Euro “fell to a one-week low against the dollar on Thursday after a survey showed German corporate sentiment deteriorated by more than expected in April”.
Whether that is a harbinger of more to come is, to a degree, a matter of speculation but inferences from the Euro-zone’s macro-economic situation point to a decline sooner than later. That is borne out, among other factors, from a 2008 survey of economic freedom by the Heritage Foundation where not a single member of the Eurozone makes the cut in the top 10. The US comes in at number 5 and the UK squeaks in at 10. Chances are this tourist boom fueled by a weak dollar is likely to go the way of some of the previous booms sooner than later.