Wednesday, 10 December 2008

Sell sterling, buy into Bed and Breakfast

Can't get to sleep at night because of fears about the Pound falling to 1.13 Euros? Worry not fellow Highlanders, at least those involved in the tourist trade. The(only) silver lining on this afternoon's news that sterling is under sustained attack from speculators determined to send the pound to its lowest level ever against the Euro is that the domestic tourism market ought to benefit.

Past recessions have shown the Scottish tourist trade bucking the trend as more and more people opt to stay in Britain for their summer holidays. If the pound falls any more against the Euro these domestic tourists will be joined by continental hordes who usually find the UK, with its ridiculous per head per bed rates, an expensive outing.

Fears that the UK will suffer "the worst recession in the developed world" (thanks, Commerzbank analysts) and that the economy will shrink by 2% in 2009 - double what the chancellor has forecast - has prompted heavy selling on the pound that could see it achieve parity with the Euro in a few months time.

At the Commons Scottish Affairs Select Committee today, where MPs were looking at the effect of the economic crisis, Professor David Bell of Stirling University said that the Caledonian economy was going downhill at the same rate as the rest of the UK. Some studies have said that Scotland would fare better in the recession, others that it will do worse.

I'm telling you, get the B&B brochures ready now. You couldn't do better than my friend CA's classy Scandic cabin in Achmore.

No comments:

Post a Comment