Monday, December 05, 2005
Euro's Negative Impact on Tenerife
A study carried out by Joe Kanada at Stanford University concludes that since Spain adopted the euro, tourism in the Spanish island of Tenerife has been affected negatively. In the last two years Tenerife has lost more than 125,000 tourists as it has become more expensive than its competitors. The study shows the euro having a positive effective on mainland Spain, where tourism constituted a small part of the national economy, and a negative effect on Tenerife where three-fourths of the economy depends on incoming tourists. The higher prices caused by the adoption of the euro outweighed the other beneficial effects of the euro.
Source: MaltaToday Closed minds, open questions
You can download Joe Kanada's thesis here, Inside and Outside the Boundaries of the European Union: The Impacts of a Monetary Union on Tourism in Spain (pdf)
