Will Spain react to UK Currency Crisis? - Spanish Real Estate forum - Spanish property

sanchia · 01-04-2009, 09:51 PM

With the pound weakening by the day, and the Euro now being worth 25% less than it did this time last year we have to ask how is it going to affect Spanish tourism!
Many British families are moving into 2009 with caution knowing that jobs in all industries carry uncertainty, although on a brighter note we are led to believe that the "Family Holiday" is the last luxury to fall by the wayside where possible in a Recession.
Whilst Spain is included in the "Global Economic decline" I wonder if it will recognise the need to reduce the holiday product price to encourage those who are currently considering non-euro destinations such as Turkey and Egypt, to put Spain back at the top of their holiday list!

Homefinder · 01-04-2009, 10:27 PM

Other points here -

1. Just right now Egypt (especially) and Turkey could be a big "don't go there" for Brits.
2. I agree that the family holiday will be the last thing to go but most will be looking to do it on the cheap. Perhaps they will stay in UK - and risk the weather?
Where is the cheapest place that is stable, friendly, cheap and offers guaranteed sunshine from May to October - apart from France?
3. I live in Moraira and talk to people. I can say for sure that restaurants, bars, supermarkets etc. are seriously "tightening their belts".
Spanish people don't moan and groan about the recession but they are cutting back on spending in a big, big way and the restaurants in particular are really feeling it.
For the first time in several years prices are going DOWN and thay know that the only thing that will save them is tourism.
4. If you really think about it a villa holiday is the only sensible option. If the holiday budget gets depleted half way through they can still shop at a supermarket and enjoy an evening barbecue around the pool.
Here's a good one: Toppers Chippy and Takaway in Moraira are planning part cooked BBQ packs - just take them away and finish them off on the barbecue. Ribs, chicken pieces, susages, potatoes etc. and a bowl of salad - around 4 Euros per person.
I really think it could be "business as usual" but lots will miss the early bargains by booking late.
Cheap flights are cheap, cheap, cheap right now even for August. Cheap flight only go one way and that's up - apart from tearing down the runway a bit first!

Hold your breath and watch this space!

Homefinder

Shareacar · 01-06-2009, 09:57 AM

the other thing that is concerning is the impact of the exchange rate on people still "earning" in sterling (and other poems). Not just the retired folks who must be really feeling the pinch, but the semi-retired and UK-Spain commuters are also starting to notice how far or how short their money goes (I'm one). Price of a beer in my local in Spain is now more than it was at heathrow airport 15 days ago. This has had an impact on my social spending in Spain and I am sure the same is true for many others. Only good thing is we can still have a smoke in the pub at the moment, but I am sure the Brussels brigade will be doing something about that in the not too distant future. If the local expats stop spending it will have a serious impact on the expat businesses.

Worried and skint, thats me!

Steve

Homefinder · 01-06-2009, 04:28 PM

Asking around in bars and restaurants in Moraira it looks like everyone has all ready cut down on spending, ex-pats and Spanish alike. I am told that Winter takings are down by around 50% on last year.
Everyone, everywhere in the world are changing their spending habits.
Quite simply a number of establishments and suppliers to those establishments in all types of commerce must close. This in turn creates unemployment, less money to spend all round and the downward spiral continues. Those that survive have to tighten their belts and get their act together.
The problem for bars and restaurants is that this is non-essential spending. Winter months are never very good for them so the big crunch will come during next Spring and Summer.

Homefinder