As the pound plummets, Americans are choosing to travel to the UK

As the pound plummets, Americans are choosing to travel to the UK

With the pound plummeting, the British tourism industry is booming, and Americans who are preparing to travel have all set their destinations in the UK. However, British people who have travel plans are not so happy.

 

GBP/USD exchange rate plummets

 

On Friday, September 23, 2022, under the leadership of new Prime Minister Liz Truss, the British government announced a series of tax and fee reduction policies.

 

The pound slumped in response, hitting a record low of $1.0327 on Monday morning before stabilizing at around $1.07.

 

This means that American tourists can now exchange less dollars for the equivalent amount of pounds. According to xe.com, as of September 26, 2022, 1 US dollar can be exchanged for 0.95 pounds, which is a significant change compared to 0.85 pounds a month ago or 0.73 pounds a year ago.

 

The fall in the value of the pound is good for American tourists because it increases their purchasing power in the UK. While there are many places Americans want to travel to, this exchange rate is very tempting for American tourists and could drive a wave of tourism to the UK.

 

UK is top destination for US tourists

 

Thanks to a stronger dollar, Britain has become more attractive to American tourists.

 

Even without considering the appeal of the UK’s history, culture, cuisine and natural environment, the rapid depreciation of the pound, coupled with the surge in the US dollar, means that now is the best time for American tourists to visit the UK. According to GlobalData, the number of people traveling from the US to the UK is expected to increase by 140.7% compared to last year.

 

One of the key policies proposed by the chancellor was the decision to reintroduce a tax-free shopping scheme for international tourists, with shopping centres across the UK now able to compete head-on with those in Paris, Milan and Madrid.

 

A weaker pound could help make up for business lost from a lack of domestic tourists, who were one of the main sources of growth in retail tourism and luxury goods sales in Britain before the outbreak.

 

British families hit hard

 

As a tourist destination, the UK stands to benefit, but for British households already struggling with soaring energy bills and inflation, it is undoubtedly a cause for anxiety.

 

According to a GlobalData consumer survey, 93% of British respondents said they were very concerned about the impact of inflation on their household budgets. They may also soon face higher costs for imported goods and services, including fuel, cars and food.

 

As for travel, there are several possibilities: British holidaymakers may choose not to travel, or choose domestic travel, or they may lower their budgets, for example, by staying in budget hotels instead of star hotels.

 

Ultimately, the British will be the total losers, while American tourists will be the biggest beneficiaries.


GBP

Depreciation

travel

<<:  The trend of international shopping in the United States is accelerating! Consumers value these two points most

>>:  The US B2C e-commerce market is expected to grow by 11.8% in 2022

Recommend

Gearbest US orders moved to Italy? Fake!

In September, it was revealed that the Gearbest w...

Indonesian e-wallet ShopeePay launches themed version as Ramadan approaches

ShopeePay, Shopee’s official built-in digital wal...

Fake reviews continue to plague Amazon products, with “review merger”

Foreign countries have always strictly regulated ...

What is Amzpecty

Amzpecty is an affordable Amazon product selectio...

What is ShipSaving? ShipSaving Review, Features

Founded in 2018 and headquartered in Los Angeles,...

Is Amazon also asking for reviews for its own stores?

In 2021, many sellers are still haunted by the Am...

What is Lightspeed POS? Lightspeed POS Review, Features

Lightspeed POS is a POS payment solution provider ...

What is Everything Grows? Everything Grows Review, Features

Wanwu Zhangsheng (Ningbo Wanwu Zhangsheng Supply ...

What is 4SELLERS? 4SELLERS Review, Features

Founded in 1999, 4SELLERS is an integrated system ...