Many industries are negatively affected by rising fuel prices, which has happened recently because of the uncertain geopolitical problems in the Middle East. Holidays, for example, become a lot more expensive. Unfortunately changes in the price of jet fuel are tracked by airline companies in such a way that the customer foots the bill. For example, long haul flights with Air New Zealand have recently been bumped up by 17 percent to recover losses from fuel prices.
Depending on where you are travelling to, this can only be the start of the bad news. If you are holidaying within the Euro zone, for example, the rise in oil prices can make your whole holiday that bit more expensive. Countries in the Euro zone are incredibly dependent on imported oil, and so the rise in fuel prices has a negative overall effect on their economies, decreasing the GDP, increasing inflation and therefore increasing the cost of your stay.
This is not to mention the cost of driving, which is an alternative way to get to your destination, or a way to get around once you are there. A popular holiday for the English is to drive up to Scotland, but this can be expensive if fuel prices are high, especially when the cost of living day to day is going up too. Cold winters and the increased price of heating make even the prospect of saving for a holiday distant dream for many.
The problems mentioned so far can be multiplied if where you are planning to go has a stronger economy than your hometown. Hiring a car can be an even more distant possibility if your exchange rate is poor.
Though they are hit in the short term, it is not just the tourists that suffer from this. There are businesses that rely heavily on tourism and these are in trouble too. Some areas could be severely affected, because they might not be able to afford a year without business.
Depending on where you are travelling to, this can only be the start of the bad news. If you are holidaying within the Euro zone, for example, the rise in oil prices can make your whole holiday that bit more expensive. Countries in the Euro zone are incredibly dependent on imported oil, and so the rise in fuel prices has a negative overall effect on their economies, decreasing the GDP, increasing inflation and therefore increasing the cost of your stay.
This is not to mention the cost of driving, which is an alternative way to get to your destination, or a way to get around once you are there. A popular holiday for the English is to drive up to Scotland, but this can be expensive if fuel prices are high, especially when the cost of living day to day is going up too. Cold winters and the increased price of heating make even the prospect of saving for a holiday distant dream for many.
The problems mentioned so far can be multiplied if where you are planning to go has a stronger economy than your hometown. Hiring a car can be an even more distant possibility if your exchange rate is poor.
Though they are hit in the short term, it is not just the tourists that suffer from this. There are businesses that rely heavily on tourism and these are in trouble too. Some areas could be severely affected, because they might not be able to afford a year without business.
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