Travel plans to SP being affected by world economic "recession"?

Hi---
Just curious if TT'ers are delaying or canceling or otherwise reducing travel plans to the SP (or other trips) due to the economic problems sweeping most countries?

Or, if you own/manage/work at a tourist accommodation in the SP, are you seeing advance bookings drop??

I'm not trying to start a debate on the world economic problems and/or its causes, just interested in how it is, if at all, affecting the SP.

Raro

Have 3 holidays booked and paid for.
Fiji (Castaway) next month, Fiji (Mana) in Feb and Hawaii in March.
Will go back to Fiji when we get back from Hawaii in July.
So far the only effect of the recession on us is to increase the value of our Hawaii apartment.
No doubt our interest income will reduce when our deposits roll over.

Hi Raro - I can tell you that I just booked two couples for a three week trip to the Cooks in mid-February. I will be down for 7 weeks in February and March. I have seen a drop off in sales of the Cook Island book, but with the new book coming out within a month they may just be waiting for the second edition. Sales of the Palau book are steady. Right now we are taking advantage of the favourable exchange rate on the US Dollar. Hopefully, for everyones sake the economics may have bottomed and things will recover. The potential of ANZ dropping the Los Angeles to Rarotonga route would seriously dicourage North American visitors, hopefully that all can be worked out.

Papa Mike
[http://www.mikehollywood.com]

We were in Fiji in July this year and have since then watched the AUD slump against the FJD. It was 20% higher in July. Why the AUD, which is the currency of an economivcally strong country should drop so much aganst a country that will surely be affected by world recession to that degree is beyond me (and I have a degree in Economics!)

I actually do have some theories, but theyre all irrelevant in these turbulent times.

Air Tahiti Nui and Air France are cutting flights to Tahiti, the Sheraton is laying off employees. They have had the least amount of visitors since immediately post 9/11. They are considering revising their marriage laws so that tourists can marry in Tahiti, currently one has to be a resident there for 30 days in order to do so.

However, the Euro has fallen significantly against the U$. Yesterday at Faaa airport the rate was 90.76 CFP to $1 in U$ Travelers checks. The dollar had been as low as 70, when I first went to Tahiti it was about 110.

Strange times, last December I made money because I exchanged too much U$ in Tonga, when I had to change it back I got more dollars than I had originally paid for the Pa'anga.

I chose to go to Palau this year not only because my dollar was worth a dollar there but because it was significantly cheaper for me to fly LAX - Tokyo than LAX - Papeete (the rest of the trip, the expensive Continental part, I did on frequent flyer miles which I was afraid were going to expire or get devalued).

"Why the AUD, which is the currency of an economivcally strong country should drop so much aganst a country that will surely be affected by world recession to that degree is beyond me (and I have a degree in Economics!)"

This is also the question in Canada... All the countries of the world with "resource-based currencies" are taking a huge hit. It isn't making any sense with the American economy teetering on the verge of collapse and depression, that the world's money gurus are lapping up the Yankee buck like whipped cream...
I cannot believe that the Samaon Tala is gaining on the Canuck buck... Same with most Asian currencies. In August, it was approx. 2.7 Tala to the CAN$.. Now down to 2.1.

When comparing resource based currencies against each other then it's not so bad... Maybe Canadians should think about heading to Oz, NZ or S.A. where the exchange has been stable or even favourable.

I am glad I purchased all my travel back in August.

We are still planning our trip to Palau and the Philippines for Feb/Mar 09. We can only do so as we have free tickets to Manila but are now finding that the rest of our costs have gone up by 30% due to the weak Canadian Dollar. But we had also planned a family trip to Newfoundland for Christmas and have now decided not to go. Being retired our RSSP fund is used to pay some of the costs of our travels - with the stock market decline we have to give up something this year and although Palau is going to cost more we feel it's now or maybe never! For us the weaker Canadian dollar is what hurts the most! We are glad we bought US dollars when we hit par and are hoping they last until the Cdn dollar rebounds,if ever!

Yes, I just read tonight that the austr and kiwi currencies are doing badly since investors abandon these "second-level" type currencies and put money into supposedly "safe" currencies like the US dollar and the yen.

Well, it's all a mystery to me.But if any Yanks were considering a trip to the Cooks, this is a good time to go! The NZ dollar has dropped from about .67 of a US dollar to about .55 of a US dollar! That's a few extra drinks each week at the Staircase. And nice places that might run US$100/night are down to about US$80 a night or so, if my math is correct.

Unfortunately Air New Zealand usually applies whichever currency is best for itself, so not many discounts as of yet on the airfares.

Now, if I could only invent a great computer currency trading program that can instantly trade between the US dollar, Tongan pa'anga, Samoan Tala, NZ dollar and back to the US dollar, I might make a few bucks. But then of course I'd still lose out after having to pay exchange rate fees to brokerages, arbitrageurs, etc.

The only answer I can supply is one that relates to buying some new clothes. I'm aiming to be the VP candidate for a major US party in 2012!

You're right, Raro, in your analysis... I think though, in the long run, that resource-based and industry-based currencies will do better than nations with service-based economies... The world needs oil, gas, iron ore, nickel, copper, bauxite, timber etc. and manufactured goods.

I really don't know what America has left to really base a stable currency on anymore... It was, up until now the the service economy ie banking, securities that was providing that stability, but now that seems to have gone south along with Pittsburgh's steel mills and Texas's oil and there does not seem to be alot left.

I do like your concept of extra drinks at the Staircase... Save a chair for me, please.

Yes IB, I always thught that countries with basic mineral resources like Australia would always have a good base for their economies. and good agricultural countires like NZ would also have a good, but probably lower, "safety net" level below which their currency wouldn't drop. Everyone does still need to eat (although maybe NZ butter will be replaced by other spreads).

So, I too am puzzled by it all, at least in the short run.

I have advised our president (is it Bush, or something like that, I never see him on TV anynmore??) to invade---oops, I meant to say "annex"---- Alberta, as it seems to have a lot of things we need. Nice lakes, mountains, streams--- and oh yeah, lots of oil and natural gas! We'd even put in a baseball team, free of charge! And we have some "hockey moms" we could throw in as well!

All right, this is getting too political, sorry for that, and we can just end it soon with maybe a few short and pithy comments and let it go until the next depression, er, I mean, "market re-alignment.".

I waxed and waned about making my trip to Ofu this year. Airfares are out of control. My fare to get from the Midwest US to Pago has lingered in the $1100-1300 range since 1994. In June of this year, just when I started thinking about a year end trip, the fare jumped to $1900-2200.

One day I stumbled upon a $1700 fare (kayak.com rules!) and bought it. I dipped into my savings and have been living frugally to make up for it, but I'm out of here on Christmas Eve and'll be on Ofu well in time to celebrate the New Year.

Next year . . . well, I'll have to see. I've stopped thinking that it's a given that I'll visit "my island" once or twice a year like I have since I first fell in love with the place.

--Terry
www.vaotolodge.com</a>

Terry, keep on with your yearly plan! Work a few extra hours of overtime, etc. (if appropriate), skip a few dinners at restaurants, etc. Sounds like missing Ofu is more than the offsetting hassles you'd have to go through to save that extra $500 or so each year. Just think of it as "psychological" rest. (But unfortunately I doubt the IRS will let you take the airfare as a medical deduction!).

Airfares to Solomon Islands are getting cheaper, but you need to book both flights and accommodation in advance. While I was there the first 2 weeks of this month, the Aussie dollar dropped compared with the SBD, but it is still about 5 to 1 = good value for North Americans.
Pacific Blue also starts flights in December.