The Effect of Currency Devaluation on Tourists Influx. Essay

533 WordsMay 30, 20143 Pages
The Effect of Currency Devaluation on Tourists Influx. The term currency devaluation or depression means that the significance of a country's currency value has lowered as compared to that of other countries. Depreciation is seen in almost all types of currencies. Any nation that participates in international trading, investment or finance needs to enjoy the foreign currency. The exchange rates have a powerful impact on cross-border financial transactions. Investments, finance, trade, migration and in fact tourism all are overpoweringly influenced by the international economic policies. Most of the under-developing and developing countries keep in hand certain alternatives to overcome the policies of the global economic policies. Today, where everything comes without guarantee, for most of the countries’ financial security is a major concern for an effective economic growth. Basically, there are two main strategies: the former involves the management of fiscal conditions in the domestic land to provoke stability and the latter is all about the promotion of the monetary stability with the help of their functions as the circuit breakers of banking systems. Over the years, exchange rate has been a hot topic among the researchers. It has been the most important factor that has played an imperative role after the financial crisis has been in the picture. As a result of the global financial crisis, the tourism and hospitality sector face many different challenges. Earlier because of the significant contraction, tourism industry rebounded strongly but when the conditions were better there was a significant increase in the number of tourists. The hospitality industry is still expecting a good amount of recovery. The global crisis showed a powerful impact on the developed nations as well. Few of them are still facing a major political crisis. No such definition

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