The worldwide financial crisis is a story that just keeps getting gloomier as Europe, America and a swathe of other countries and regions struggle with banking fiascos, soaring national debts and plummeting currencies. For holidaymakers, the crisis is a double edged sword.
Shop around and bargain hard – you can literally shave hundreds of euros off holiday accommodation at the moment- Helen Raine
On one hand, there might be some good bargains to be had in cash strapped countries. On the other, the risks are higher that your travel provider might go bankrupt or the exchange rate might bite back. With a bit of research, though, you can make the crisis work for you.
Keep an eye on the exchange rates
Unfortunately, for Iceland, it’s the poster child of how an economic crisis can result in a very favourable exchange rate for travellers. For many years, the reputation of the country for extraordinarily high food and accommodation prices was enough to keep all but the most fervent (or rich) tourists away.
It is still not dirt cheap, but you are getting much more for your money now and hotels are going for as little as €35 per night in Reykjavik.
That means that now really is the time to go because as the land of ice and volcanoes recovers, it might never prove to be quite so reasonably priced again. Highlights include a Blue Lagoon radically different from the one we know and love in Comino; this one is a geothermal pool of hot mineral water whose banks are dusted with snow.
You can also warm up in Rejkavik’s famous nightclubs, hit a bar made entirely of ice or admire icebergs floating in the Jökulsár Lagoon followed by a trek over a glacier. It’s all too good to miss, in a rather wintery kind of way.
Alternatively, since the pound also remains relatively weak against the euro, this could be a good time to visit Blighty. Try to avoid the UK school holidays though; a weak jobs market and ongoing recession mean that many British families are also choosing to holiday at home so tourist hotspots in peak season are busy and booked up well in advance.
Outside these times, your euro will go a long way against the pound and businesses might well be prepared to negotiate on prices.
Go to the Pigs
Unless you have been in a bunker for the past few years, you’ll be aware that Portugal, Ireland, Greece and Spain (collectively known by the rather unflattering acronym of Pigs) are having a spot of economic trouble and Italy is not far behind them.
All these nations rely heavily on their tourism income (in Greece, one in five jobs is connected to tourism) so their respective governments are doing what they can to entice you and more importantly your wallet to visit; bargains abound.
However, there are a couple of drawbacks. Greece in particular is suffering from regular strikes which can cancel or delay flights and lead to hassles with transportation when you finally get there, such as missed ferry connections or cancelled buses.
It’s probably worth finding out when and where key protests are likely to be happening during your stay so that you can avoid them (unless you like to smell of tear gas in the morning) but Athens is the main focus of clashes, while other major tourist centres remain largely unaffected.
Keep in mind that the shaky state of the economy in these countries means that businesses are more liable to go bust.
If you have paid in advance, this is not likely to make for a happy holiday but the usual advice applies to ensure you are fully protected; book through a reputable tour operator who will guarantee your booking through the ATOL or ABTA scheme and purchase some travel insurance to cover unexpected hotel closures or flight cancellations.
One other issue is that a fall in tourist numbers can lead to businesses closing either permanently, or earlier than usual in the seaso
Tourist numbers might not be down overall across the countries in the most economic turmoil (in Greece, they are in fact reaching record numbers), but they might be more concentrated into particular areas by tour operator deals, so the smaller resorts may still be suffering.
Some tourists report a rather depressing atmosphere in formerly vibrant tourist towns.
Bargain hard
While the eurozone is not doing terribly well, the US is also in crisis with a collapsing housing market and spiralling debt and unemployment. That has had a knock on effect worldwide; as people tighten their belts, holidays are one of the first luxuries to go.
If you are travelling independently, you will find that private owners in particular would rather get a booking for a villa or guesthouse at a lower price than have the room stay empty. So shop around and bargain hard. You can literally shave hundreds of euros off holiday accommodation at the moment.
Make the most of the peace and quiet
If you hate crowded beaches, queuing for a table at dinner and driving round and round looking for a parking space, then the worldwide recession might prove to be good for you.
Destinations in New Zealand, Hawaii, North Africa, Antarctica and many more across Europe are reporting falls in visitor numbers so to enjoy your destination without rubbing shoulders with thousands of other visitors trying to do the same, pack your bags now.