Economics Exchange Rate Systems Questions
Exchange rates can have a significant impact on tourism. When a country's currency depreciates, it becomes cheaper for foreign tourists to visit that country. This can lead to an increase in tourism as it becomes more affordable for travelers. On the other hand, when a country's currency appreciates, it becomes more expensive for foreign tourists to visit, which may result in a decrease in tourism. Exchange rate fluctuations can also affect the cost of travel-related expenses such as accommodation, transportation, and dining, further influencing tourism patterns.