Economic costs and benefits of the euro for tourism

Abstract

Most studies about the influence of the euro for tourism calculate the savings of transaction costs of ½‐3% and assume that these amount will increase tourism demand. This paper argues, that the influence of the euro on tourism is much smaller. The transaction costs would have been falling even without the euro due to technological developments (cash‐cards etc) and a part of the costs (of credit cards) will not be diminished. Also, the costs for the tourism industry of fluctuations of the exchange rates would become smaller in the future even without the euro. In addition, the costs of the introduction of the euro will have to be born lastly by the households and therefore by tourists.

Citation

Socher, K. (1999), "Economic costs and benefits of the euro for tourism", The Tourist Review, Vol. 54 No. 2, pp. 14-20. https://doi.org/10.1108/eb058299