Swedish Krona too strong that its pain already told is getting worse - tourism joins other exporters to feel the pain.
Tuesday, 05 February 2013, updated: Wednesday, 06 February 2013
The Swedish currency, the krona has been getting stronger against the
world's leading currencies in recent months that all indications show
that it will continue to hurt the Swedish economy. Another major area
to join the example is the tourism sector.
The krona has strengthened considerably in recent times, the price
Sweden has to pay for having a stronger and well-balanced economy with
an impressively well disciplined public finances. The gain has been
somewhat overshadowed by the euro, the currency the krona often
compared with which is also going strong. One euro cost at the moment,
around Skr8.55, compared with a rate below Skr8.20 at the end of the
summer last year.
This makes the Swedish Krona and the euro two of the world's 20
strongest currencies that have moved the most in the last three months,
according to reports. The krona has appreciated by 6.27 percent against
the dollar and the euro by 6.03 percent. The currency that has dropped
the most is the yen, which has weakened by 13.32 percent against the
dollar in the last three months.
The tourism sector is one of those sectors that have been growing for
Sweden in the past years and a sector currently feeling the effects of
a strong Krona. As the sector has been seen as an easy money-spinner,
Sweden has been banking on it to cover some of the weaker spots its
manufacturing an related industries had lost.
For the first time since 2003, the number of visiting tourists from
abroad in Sweden fell last year. This is according to new data released
by the Swedish Growth Board, or Tillväxtverket presented on Wednesday.
The value of Swedish tourism sector, is higher than passenger car
exports, the iron and steel exports, and employs directly and
indirectly some 160,000 people in Sweden today.
In 2012 there was a small surplus of 0.4 per cent in the number of
commercial overnight stays in Sweden. This includes all paid nights
around the country in everything from hotels, campsites, and youth
hostels to private leases, all included in the statistics.
The flow of tourists from abroad slumped by 0.6 percent, the first decline since 2003.
One reason for this is being attributed to the euro crisis. Top EU
countries such as Greece, Spain and Italy which used to see its people
visiting Sweden has recorded a lost almost every fifth tourist. There
is no coincidence here as most of these countries are in the thick of
the EU economic crisis.
However, long-distance tourists were have been reported to be on the
increase. Generally, from outside Europe, nearly 6 percent more
visitors than before came to Sweden as tourists according to
By Scancomark.com Team
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