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What is the importance of exchange rate for businesses such as hotels that rely on foreign tourists?
Wiki User
∙ 9y ago
Well, fluctuation in exchange rate might put both hotelier and the foreign tourists into problem, for which forward booking of currency,( though not feasible for short duration) is advisable when you plan for a longer stay.In all other cases, the hotelier charge the prevalent exchange rate for the particular day and the tourists is bound to accept and pay accordingly which may be income/loss for the either side.
Wiki User
∙ 9y ago
Wiki User
∙ 9y agoThe exchange rate allows the value of the domestic currency to be measured against foreign currencies. If the exchange rate of a country is low, the export prices of that country would also be lower. This allows the export prices of that country to be lower, hence increasing the price competitiveness of the firms in that nation.
A lower exchange rate in a country could benefit hotels operating in that nation. The lower exchange rate could attract tourists as travelling to that country should be cheaper for foreign tourists.
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