How does a weak domestic currency affect tourism?

How does a weak domestic currency affect tourism?

• A. It reduces the number of foreign visitors.
• B. It attracts foreign tourists as their money goes further in that country.
• C. It makes tourism more expensive for travelers.
• D. It doubles tourism revenue automatically.

Answer: (B)

A weak domestic currency makes the country cheaper for visitors with stronger currencies, so their money goes further. That jump in purchasing power lowers the real cost of hotels, meals, transport, and attractions for international travelers, which tends to attract more foreign visitors and boost inbound tourism. It doesn't reduce foreign visitors, nor does it make travel more expensive for them; and tourism revenue isn’t automatically doubled—income depends on how much visitors spend and other market factors.

A weak domestic currency makes the country cheaper for visitors with stronger currencies, so their money goes further. That jump in purchasing power lowers the real cost of hotels, meals, transport, and attractions for international travelers, which tends to attract more foreign visitors and boost inbound tourism. It doesn't reduce foreign visitors, nor does it make travel more expensive for them; and tourism revenue isn’t automatically doubled—income depends on how much visitors spend and other market factors.