Turkey is a country that has a unique culture at an important point in its history, facing questions of religious and regional identity. Although it has always been an exotic, beautiful, somewhat off-the-beaten-path alluring destination, this time of sweeping change makes Turkey an even more exciting place to be right now. The timing works out well in this case, as the lovely autumn climate and many deals on flights are currently rolling in. For example, Turkish Airlines is offering roundtrip nonstop flight between New York and Istanbul for just $564, between the dates of October 26-November 1 and November 7-30. Flights to other less visited (and therefore usually more expensive) cities in Turkey are also very reasonably priced next month, such as Izmir for $689, and Antalya or Kayseri for $729. Many of these rates apply for flights leaving from Chicago as well. Additionally, the favorable exchange rate allows the affordability to continue after you step off the plane. From cultural and historical adventures such as ancient ruins to breathtaking natural wonders like Cappadocia, a trip to Turkey is an enchanting (and inexpensive) way to ease yourself into the winter.
October 25, 2007 No Comments
For those thinking of traveling abroad this Labor Day weekend, the problems with subprime lending may serve to keep you grounded. The downturn in the US economy, mainly as a result of the housing recession will cause many people to change their minds about that vacation. But those that do venture abroad will find things a lot cheaper due to the recent appreciation in the US dollar.
The economic slump affects the prospective traveler in a number of ways (all negative). First, the housing recession has spread to other parts of the economy, depressing wages in a variety of sectors. If you are getting paid less, you have less money to spend on discretionary items like travel. Second, your purchasing power is tied to not only your income, but also your wealth. And the largest component of net worth for most Americans is the value of their home. What the subprime crisis (and the broader housing decline) has done is cause that value to depreciate, lowering your net worth and ability to spend money on foreign vacations.
Subprime problems will also prove detrimental to travel in more general ways. Going abroad on the Labor Day holiday is a luxury, and the ability to pay for that luxury requires certain things. We have discussed how American consumers have less real money to spend, but many times, vacation decisions are made on the basis of how we feel about our economic health. Consumer confidence in this country is at a multi-year low, partly due to so many people losing their homes in the subprime fiasco. And since consumer spending accounts for 2/3 of our economy, the low confidence is only likely to perpetuate itself, creating conditions where no one feels up to traveling.
Lastly, we have to consider that many people pay for vacations by borrowing money. The most direct effect of the subprime issue is the tightening of the credit market. Banks are so afraid to lose money on loans (or at least, some loans) that they have begun charging higher interest rates to cover their losses. Higher borrowing costs mean that last vacation before summer ends just got more expensive.
There is a silver lining to those that just have to show off those white clothes one last time. I said that banks have become gun-shy with loans; that feeling of fear is true with regard to investors and traders as well. Everyone wants to get out of risky investments in case everything blows up on them. And when fear pervades the marketplace, traders turn to the world’s safest investment: US Treasury bonds. People love buying the debt of the world’s largest economy because it is the world’s most liquid asset, and the US government will never (absolutely never) default on its debt obligation.
What does this mean for American travelers? Well, to buy US Treasury bonds, you need US dollars. As the demand for Treasuries increases, the value of the US dollar goes up. And that’s been the direction of the American currency for the past two weeks against all the other major currencies (Euro, Pound, Swiss Franc, etc.) except for the Japanese yen (a more complicated story). That means it’s cheaper to visit Europe, Australia or New Zealand than at any other time this summer. So if the housing slump hasn’t gotten you down, take advantage of the dollar strength while you still can and realize a discount on the last warm weather holiday of the year.
August 21, 2007 No Comments
A weak US Dollar does not have to stand between you and your best scuba dive vacations! If corals, fish, and ship wrecks are your summer must-see, you probably already know about some of the best diving spots out there. But which ones are the best and the most affordable with the current exchange rates?
With the US dollar a lot weaker than this time last year, choosing a location with a poor currency exchange rates may pull quite a few extra bucks from your wallet. When looking for your scuba vacation, consider traveling to a country with a currency that weaker than United States dollar can considerably cut down your travel expenses. While Heron Island in Australia’s Great Barrier Reef, just as the Vanuatu scuba dive in South East Asia, lures the divers with thousands of species of fish and remarkable natural treasures, these destinations are not necessarily the cheapest.
To turn your scuba diving vacations into the best deal possible, watch out for the exchange rates. Here are the world’s 8 best scuba diving destinations where a weaker US dollar will not affect your budget plans:
1. Belize
The warm Caribbean waters of Belize are one of the most acclaimed scuba diving destinations. Here, you can swim alongside nurse sharks and stingrays in Shark Ray Alley, take a look at the fascinatingly diverse marine life while gliding through the Barrier Reef, or explore Belize’s famous Blue Hole, a perfectly circular limestone sinkhole more than 400 feet deep. Belize Dollar is fixed to the US dollar, the average USD to BZD exchange rate being 1:1.96.
2. Grand Turk, Turks & Caicos
The islands of Turk’s and Caicos are a true divers’ paradise. Thanks to the government determination to protect its valuable natural environment, untouched reefs, dunes and drop-offs are awaiting under the water.
Although the US dollar being the Turks and Caicos currency saves you money on exchange rates, the cost of the diving tours skyrockets when the tourist season hits peak (mid-December to mid-April). Therefore, it’s best to plan your trip between April and July as the water gets unbearably hot afterwards.
3. Cayman Islands
Mid-December through mid-April is the peak tourist time in the Caymans, too. This spot often referred to as the best Caribbean diving site, is an ideal US-dollar destination thanks to its clear and warm waters.
4. Mozambique
Islands of Mozambique are totally undeveloped and a nature-lovers’ dream. Along with the reefs and clear waters, you can experience wonderful night diving and wreck explorations in the Marine National Park. The best months to visit are June, July and August. Mozambique’s currency being fixed to the US dollar, the USD to Mozambique’s Metical rate oscillates around 25544.1:1. Before you head to Mozambique’s irresistible waters though, check government travel advisories. Some places in the country are still affected by a long civil war and may suffer unrest.
5. Yap, Micronesia
Another place where you can benefit from avoiding exchange rate losses while planning your scuba dive vacations is Yap. This little island in Micronesia with the US dollar currency, but is certainly among the world’s brightest diving treasures. It is known for its incredibly diverse marine life, especially the mysterious and largest of all rays, the manta ray. It’s recommended to visit the island during the dry season between December and April.
6. Bonaire
The marine park of the Bonaire waters offers the divers a wonderful sight of an unspoiled underwater ecosystem. The best time to indulge into the diving pleasures in the Caribbean waters of Bonaire is between September and December, as the sea is the calmest at that time. Netherlands Antillean Gulden is fixed to the US dollar. Hence, exchange rate fluctuations will not affect your scuba dive vacations’ budget plans.
7. Hawaii
To avoid downsides of traveling while the US dollar is weak, staying within the country may be a reasonable strategy. Giant sea turtles, whales and sharks are redundant in the fertile volcanic ecosystem of the Hawaiian waters. Although not as clear as those of some sheltered islands, its waters offer a great scuba diving adventure thanks to the richness of Hawaii’s marine life.
8. Florida
Florida is the best scuba diving destination on the North American continent with countless scuba diving shops along the entire Gulf coast and Atlantic coast. While the Gulf coast usually outperforms the Atlantic Coast in visibility, the latter offers a wealth of reefs and shipwrecks. The convenience of and economy of Florida travel, alongside with the abundance of tropical fish, manatees, giant turtles and dolphins account for one of the best scuba diving vacations.
June 12, 2007 No Comments
We receive questions about currency and exchanging money quite often. Bob asked one very similar to questions many people ask:
I have plans to visit the UK in the near future, London to be exact. My concern is if i should convert some of my US dollars to pounds prior to arrival. I have been advised to use my credit card for as many purchases as i can. Should i convert at the airport when leaving the US, or at the airport in the UK? Would it be better to convert at a local bank? I dont think i will need more than 500.00 Pounds. I think that may mean I will be converting close to $1000.00 US dollars to get $500.00 Pounds. Can you advise? Thanks.
Answer:
Bob,
Avoid airports and banks as along with currency exchange booths, as they give you the worst rates. For 500 British pounds you are best off using your ATM card at a ATM in London. Depending on your bank, the charge is similar to using a credit card. Some credit cards are better than others. You may want to call them to compare their fees. A 3% markup with no extra fees is about normal. Mind you will pay an ATM fee too, but even with this fee, the total cost is still lower than exchange booths which charge close to 10%.
gocurrency.com
January 26, 2007 2 Comments
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