Sterling effort

STERLING rises against the euro and everyone is feeling more optimistic about the summer season. It was trading yesterday at almost 80 pence per euro and is on course to reach 77 pence according to dealers. It is quite incredible how a foreign currency is so important to Spain especially in these days of the single currency. But Spain relies on British tourism and if British holidaymakers have more money to spend then it is great news for the Spanish economy. In the days of the peseta, if the Spanish government was concerned about tourism, it would just devalue its currency and British tourists would come in even greater numbers. These days Spain is part of the euro zone and devaluation is no longer possible but the European debt problems could just give Spain a tourism edge this summer if sterling continues to be strong. Granted British tourists are feeling the pinch because of the economic climate in Britain but if they get a few more euros for their pounds then just might opt for a holiday abroad rather than staying at home. Another good point about British tourists is that when they are on holiday they ensure that they return home with little money left, because it has all been spent in resort.If you look back through recent history you will see that the Balearic tourist industry also boomed when the pound was strong against the peseta or the euro. Finally some good news, let us hope that it is not short lived and the pound bounces back.