When Economic Downturns Are a Boon for Travelers

Follow the money, a certain anonymous source told Watergate reporter Bob Woodward about 25 years ago, and that advice often serves consumers well too. But if you’re a traveler looking for bargains abroad, you’re better off doing the opposite: Follow the enfeebled economies.

Mostly, that means checking out nations whose currency buys substantially fewer dollars than it did a year or two ago--such as the nations of Southeast Asia, but also often-overlooked destinations like Australia, Canada and New Zealand.

Unfortunately, the relationship between exchange-rate fluctuations and bargains for travelers isn’t constant. If it were, Russia would be a prime target for bargain-hunters (it isn’t) and Hong Kong wouldn’t be worth a second look (but it is).

Here’s a quick look at several countries. Note that the figures here are based on the exchange rates that banks use in multimillion-dollar transactions.

Australia: In the past 12 months the Aussie dollar’s worth fell 20% against the U.S. dollar, and since the beginning of 1997, the fall has been closer to 25%. The result: A ticket to the Sydney Opera House runs about $18 today, versus $24 in January 1997. In a recent survey, the Australian Tourist Commission reported these prices in American dollars: a day cruise to the outer Great Barrier Reef, $77; a daylong camel safari at Alice Springs, $46; a night at the Coconut Beach Rainforest Resort, $125. Aside from the exchange rate dip, the sudden shortage of Asian travelers (as they stay home to lick their financial wounds) has made Australia especially eager to lure Americans. Tourist commission studies show American tourism in Australia in the first half of 1998 was up 16% over the same period in 1997. More information: Aussie Helpline, telephone (805) 775-2000, Internet https://www.australia.com.

Canada: The Canadian dollar has fallen 9% against U.S. dollar in the last year. But that fluctuation is only part of a larger landscape: Not only is Canada’s currency at its weakest point against the U.S. dollar in decades; Canada also is suffering mightily from the absence of Asian visitors. In the first half of this year, the number of Asian visitors in Canada fell 23% compared to the previous year. Over the same time, the number of U.S. tourists has jumped more than 9%. More information: Canadian Tourism Commission, tel. (213) 346-2700, Internet https://206.191.33.50/tourism/Canada/index.html.

New Zealand: The Kiwi dollar has fallen 22% against the U.S. dollar in the last year. The result: A bungee jump at Kawarau (the foremost such spot in the country) can be had for about $52; a daylong tour of Milford Sound goes for about $81, and a three-course dinner (without wine) at Gantley’s restaurant in Queenstown fetches about $22. More information: New Zealand Tourism Board, tel. (800) 388-5494 or (310) 395-7480, Internet https://www.nztb.govt.nz.

Hong Kong: The Hong Kong dollar, long tied to the U.S. dollar, stood at 7.75 per U.S. dollar on Sept. 11, virtually the same rate as it had one year before. But since Hong Kong reverted to Chinese control last year and Japan’s economy went sour, tourism has dropped dramatically, retail prices have tumbled as well and tour operators, hotels and airlines have been scrambling to entice Americans. From Nov. 16 through March 15, San Diego-based Japan & Orient Tours offers a seven-day, five-night package, including air fare and lodging, starting at $868 per person, double occupancy--or $300 to $400 less than the prices a year ago. Cathay Pacific, meanwhile, offers an All Asia Pass for $999 per person (excluding taxes), which gives you round-trip air fare between LAX and Hong Kong, as well as connections to any or all of 17 other cities (most of them in Southeast Asia, Japan and South Korea) over a period of 30 days. Travel must be completed by Dec. 15. More information: Hong Kong Tourist Assn., tel. (800) 282-4582 or (310) 208-4582, Internet https://www.hkta.org.

Indonesia, Singapore, Thailand: The Indonesian rupiah fell 300% against the dollar in the year ended Sept. 11. Though many savvy Bali hotels have protected themselves by setting their rates in dollars rather than rupiah, big bargains are nevertheless widespread. The Singapore dollar has fallen 14% against the U.S. dollar in the last year. The Thai baht has fallen 17% against the U.S. dollar over the last year. More information: Indonesia Consulate in Los Angeles, tel. (213) 383-5126, Ext. 11, 26 or 47. Singapore Tourism Board in Beverly Hills, tel. (213) 852-1901, Internet https://www.singapore-usa.com. Tourism Authority of Thailand in Los Angeles, tel. (213) 461-9814, Internet https://www.tourismthailand.org.

Mexico: Between mid-September 1997 and this month, the peso fell 36%. As is true in many other countries, foreigners are less likely to save when buying currency from global exchange chains, and more likely to save when buying from small, local businesses in Mexico. More information: Mexican Consulate in Los Angeles, tel. (213) 351-6800.

Russia: Russian rubles fell 96% against the dollar in the year ended Sept. 11. Two Russian tourism industry veterans warned that visitors may find many prices higher, not lower, because the Russian economy (especially restaurants) depends so heavily on imported goods.

Reynolds travels anonymously at the newspaper’s expense, accepting no special discounts or subsidized trips. He welcomes comments and suggestions, but cannot respond individually to letters and calls. Write Travel Insider, Los Angeles Times, Times Mirror Square, Los Angeles 90053 or e-mail chris.reynolds@latimes.com.