A Greek tragedy

Last time I wrote I mentioned that with the Olympics coming to town it is likely that during this summer UK holiday destinations are going to be affected, with some (those connected with the Olympic events) gaining and others losing out.   To overcome the potential slump it seems likely that those in the holiday industry that are likely to be affected will have to offer reduced rates to holiday makers.  The question was; will 2012 be the year that we see an increase in those enjoying a bargain holiday at home? 

Then (and not connected with their historical Olympic links) along came the Greeks.  As we all know, the Greek economy is in meltdown.  It is in a deadlock with regard to forming a new government and is reluctant to accept the austerity measures that have been agreed previously.  This is having a huge impact on the Eurozone, which has seen the value of one Euro drop to £0.80p.  This has a knock on effect on the UK’s economic recovery.  The Bank of England has now cut the UK’s growth forecast for the year from 1.2% to 0.8%.  It is clear that if Greece were to leave the Euro, then matters in the Eurozone would worsen even further, with an increased impact on Britain’s economic recovery.

Coming back to the above comment on the UK holiday industry, it is clear that with the weakening Euro a holiday in Europe will become more affordable.  Will a holiday at home be a bargain after all?