china Travel to cost more with yuan rate change
It will cost Americans more to buy less in China when exchange rates change.
Recent weeks have seen important newspaper headlines that have a direct bearing on travel. Of most significance was an announcement by the central bank of China that it would reverse course and permit that nation’s currency – the yuan – to gradually increase in value. Although, a day later, it issued a supplementary statement that the increase would be modest and over a long period of time, it was nonetheless obvious that China was at last giving in to pressure from the world community to no longer maintain an artificially low exchange rate.
That rate – approximately 6.82 yuan to the dollar – is what enables Wal-Mart to sell Chinese-made clothing for low, low prices, and also permits companies like ChinaFocusTravel.com to sell 10-day all-inclusive tours (hotels, meals, drinks, transportation, escorted sightseeing, some evening entertainment) to five Chinese cities, including round-trip trans-Pacific airfare, for a total of $1,499 from San Francisco during the high season (and for less in late fall and winter).
Such a price, as I have written earlier, is the lowest in travel for a tour of such length and features to such a remote destination. It’s clear that only the artificially low value of the Chinese currency permits companies to sell China travel so cheaply.
And now this situation is about to change – which means that you should rush to take such a trip before the Chinese currency goes zooming upward.
Arthur Frommer
Sunday, July 4, 2010
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5 Jul 2010
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