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Bali: Bargain for Europeans

Surge in Euro's Value Against the Dollar Spells Savings for Smart Europeans.

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An increase in the Euro's value to virtual parity with the U.S. dollar means that Euro-earning visitors now enjoy more buying power in Bali. takes a look at the implications of the currency shift, its implications, and how smart European travelers can make their money go further in Paradise.

Bali - A Dollar Based Economy

Despite the widespread use of the Indonesian Rupiah for daily commerce, Bali's tourism economy is largely dollar-based. Because the Rupiah is technically a "non-exportable" currency, most hotels on the island post their published room prices in U.S. Dollars, with some even posting the cost of food and beverage and other services in dollars. Special "contract rates" extended to travel wholesalers and operators are generally also posted in U.S. Dollars.

Meanwhile, most restaurants and shops sell their goods in Rupiahs.

This means that European travelers converting their Euros into Dollars or Rupiahs now get almost 10-12% more than they did only a year ago. As a result, dining and hotels in Bali - already a bargain by any standard - have become even less expensive for European visitors.

Are You Paying Too Much For Your Bali Holiday?

European visitors to Bali utilizing the services of a major European wholesaler may be failing to reap the full benefit of their strengthening Euro against the Dollar.

Most European wholesalers negotiate their room rates in U.S. Dollars and then convert those rates into Euros in the process of constructing their package rates. Often forced to rely on brochures and prices printed only once a year - the hotel, local transportation, and other components of a Bali holiday marketed in Europe may have been costed when the Euro traded at a 10% to 12% disadvantage to the Dollar. Short of launching an interim promotion before their next brochure printing, prices on offer for Bali may not be reflecting the true level of savings currently available to Euro spending tourists.

How Europeans can Get the Best Deal in Bali

To avoid paying too much for their Bali holiday, European travelers should check and compare current real time prices with an established Bali travel website, such as Prices listed at that website are in U.S. Dollars and guaranteed to be the lowest available on the Internet, allowing European travelers to construct a complete Bali holiday secure in the knowledge that they're getting full value for their hard-earned Euros.

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