HIGHS AND LOWS

By Jason Moore MAINLAND Europeans can obviously take some pride over the euro. It has been a success story and its present value against the major world currencies is a sure sign of its strength. But is the euro over-valued or are the other world currencies just underperforming? A strong currency for Spain is not good especially as its relies on tourism, part of whom comes from countries outside the euro zone. British tourists (lets face it the mainstay of tourism to Spain for decades) are now finding Spain even more expensive because of the weakness of the pound. The same can be said for tourists from the U.S. who may not come to these shores but flock to the mainland. So as long as the euro remains strong some tourists are going to go elsewhere. And it is not only going to be tourists from outside the euro zone. The Germans have been finding Majorca expensive for many years and could opt for cheaper holidays in non-euro countries. So while there is some cause for celebration there is an important downside. An ideal holiday location is somewhere which is cheaper than the place you call home. This is one of the reasons why Spain has to be so careful. Any increase in prices could easily tip the balance so prudence when it comes to cost is vital.