Economics Exchange Rate Systems Questions
The impact of exchange rate changes on tourism revenue can be significant. When a country's currency depreciates, it becomes cheaper for foreign tourists to visit that country. This can lead to an increase in tourism revenue as more tourists are attracted to the destination due to the lower cost. On the other hand, if a country's currency appreciates, it becomes more expensive for foreign tourists to visit, which may result in a decrease in tourism revenue as fewer tourists are willing to pay the higher prices. Therefore, exchange rate changes can directly affect the competitiveness and attractiveness of a country as a tourist destination.