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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 Tillväxtverket.
By Scancomark.com Team

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