Travelnomics 2010

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TravelnomicsQuarterly Industry InsightQ1 2010

While the economic news has been brighter of late in many markets, we are all a long way from seeing the good times roll. And, for some markets, the good times are further away than for other markets. After all, even in a global recession, some areas are hit harder than others or have fewer resources for bouncing back. Recently, Forbes identified those hardest hit using data on gross domestic product, inflation rate and purchasing power from the International Monetary Fund. The bad news is that the 10 countries on this list all face combinations of declining tax revenues, rising unemployment, increased inflation and expanding budget gaps. However, the good news is that they are all also fascinating destinations that offer a mix of cultural and scenic attractions. So, while the IMF and the United Nations continue to do their bests to bolster the global economy, Cheapflights has a more direct solution for aiding the countries on the Forbes list: The Travelnomics Economic Stimulus Guide: A Report on the Destinations That Need Your Money the Most.

From Iceland to Venezuela, the destinations on our list are upping their profiles in an effort to attract new money and generate greater interest among travellers. The net result is a rare opportunity to explore new destinations and deals while also boosting local economies in these slow-to-recover destinations.

The Travelnomics Economic Stimulus Guide: A Report on the Destinations That Need Your Money the Most offers a snapshot of where to go and what to do to get the most of your travels to these 10 destinations. Whether you are seeking an island getaway, a sneak peek at exotic animals, a touch of history, the relaxation of a spa or just some of the best prices in years, these destinations have something for you - and it’s a given that your visit is exactly what they need.

Latvia Latvia watched its potential economic growth plummet 17% this year, and thanks to the global recession it’s even harder for Latvia to repay its debt. If you plan a trip to this EU country, make sure to take a visit to Riga’s Centrāltirgū, the Central Market, and the largest food and outdoor market in the Baltic region. Its indoor stalls are located in five old zeppelin hangars, which are an attraction in themselves. In the open-air markets you’ll find local farmers selling their produce and —other merchants selling unique, handcrafted wares. If you’re looking for a special souvenir, the Central Market is the place to go. Art enthusiasts will love Rundale Palace, the “Versailles of the Baltics.” The palace was designed by architect Francesco Bartolomeo Rastrelli (who went on to design some of the most recognisable palaces in St. Petersburg) and is open every day for guided tours. While the smaller rooms of Rundale Palace are still being renovated, the grand rooms and the ballrooms are open to visitors and display all the Baroque and Rococo splendour. Rundale Palace is about 70 kilometres south of Riga and there is a bus service from Riga International Bus Station.

Country Facts

Airports: Riga Airport (RIX), Liepaja International Airport (LPX)

Currency: Lat (LVL), which is divided into 100 santims

Language: Latvian is the official language, but English, Lithuanian, Russian and German are also spoken.

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TravelnomicsQuarterly Industry InsightQ1 2010

EstoniaEstonia saw massive economic growth when it joined the European Union in 2004, but just this year witnessed an economic downfall of more than 14%. According to reports from the European Union stats office, Estonia had the EU’s worst increase in unemployment from 2008-2009, but the country is slowly rebuilding its economic landscape.

One way to get into the spending habit in Estonia is to treat yourself to a little luxury. Visitors to Estonia will enjoy a trip to the Hotel Olümpia, where a unique sauna experience in its Club 26 gym and spa awaits. You can book a private sauna, complete with plunge pool, Jacuzzi, relaxation area – and a balcony. From there, you have a view over the Gulf of Finland while being tucked out of sign from everyone else.

After a day indoors at the spa, head outside to the Estonian Open Air Museum – an 18th century Estonian village with 72 buildings including farm houses, a church, a schoolhouse, an inn and several windmills. The village is best discovered on foot, but those who would rather not walk can hire a horse-drawn carriage or a sleigh in winter.

LithuaniaThere’s one good thing about Lithuania’s economic standing – it’s not as bad as its neighbours Latvia and Estonia. Inflation in Lithuania rose 5.6% this year (comparable to its Baltic neighbours), but it’s the country’s sacred stone that will hopefully help reclaim its lost gains. Amber is everywhere in Lithuania. It even has its own legend to explain where it came from. Whether or not you believe amber is made of the solidified tears of goddess Jurate is irrelevant – the bottom line is that amber is the most precious stone coming out of this county and you don’t want to leave Lithuania without some. Look for amber jewellery shops in Pilies Gatve, or head to the amber museum if you want to find out more about the material. Creative types who want to make their own jewellery can find raw amber at Beata at Antakalnio 60 or watch one of the craftsmen manufacture a piece after their design.

Feeling a bit bohemian? Then head to Nida on the Curonian Spit (which is a UNESCO World Heritage site) where German writer Thomas Mann built a summer holiday home in 1930. Between 1930 and 1932, he wrote some of the trilogy “Joseph and His Brothers” there. Today, the cottage houses a cultural centre and a small museum dedicated to the writer.

Grutas Park, also known as Stalin World, is an open-air exhibition of Soviet statues. These were brought to Grutas Park after Lithuania gained independence and the statues were taken down. The exhibition is the largest of its kind – with statues of Stalin, Lenin and Marx.

Country Facts

Airports: Tallinn (TLL), Kardla (KDL)

Currency: Kroon (EEK) and is broken down into 100 sents

Language: Estonian

Country Facts

Airports: Vilnius International Airport

Currency: Lithuanian litas (LTL), divided into 100 centai

Language: Lithuanian

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icELandIn the past, Iceland was considered one of the most expensive countries to visit but, following last year’s dramatic collapse of the Krona, it’s suddenly an affordable destination for travellers from both the US and Europe. Pre-October 2008 the prices would’ve shocked most visitors: a pint of beer for seven euros was historically high, compared to the two euros a pint averages today. Everything from car hire to hotel accommodation is now more affordable than ever; all good news for travellers. Flights to Iceland land in the capital Reykjavik, which provides a central base to

explore the surrounding natural wonders including geysers, glaciers and volcanic landscapes. A fun way to see the glaciers is by snowmobile and tours are available from a variety of operators. In autumn or early winter, one sight that can’t be missed is the stunning Northern Lights, when the sun doesn’t break above the horizon and there are 24 hours of darkness.

vEnEzuELaThe firebrand rhetoric of President Hugo Chavez may do little to

endear Western holidaymakers to this South American nation, but, with its economy in dire straits Venezuela is increasingly turning to tourism. Having binged on oil money for years, Venezuelans now find themselves saddled with a fiscal hangover that few expect to disappear any time in the near

future. Inflation hovered close to 30 percent throughout 2008, and

following a wave of nationalization under its populist leader, the economy is now almost entirely reliant on public funds. This places Venezuela in a vicious cycle which one economist recently described as a “slow-motion train wreck.” However, while the economic policies of the past few years have undoubtedly eroded the wealth and prosperity of ordinary Venezuelans, they have done nothing to damage the natural splendour of this vibrant South American gem.

As well as being home to Angel Falls, the world’s single highest waterfall, there are more than 40 national parks to be found within the country’s borders. Any thoughts of a global financial crisis will instantly evaporate as visitors traverse awe-inspiring sites such as El Avila National Park. Even the cable car journey to Avila Mountain is itself a worthy experience, invoking a powerful contrast between the natural majesty of the Caribbean Sea and the intoxicating commotion of sprawling capital city Caracas.

singaporEWhen the British first arrived in Singapore in 1819, the city-state’s founder, Sir Stamford Raffles, was quick to recognise its potential as a key trading hub for South East Asia. Under the auspices of the British East India Company, Singapore rapidly expanded to become one of the Empire’s most prosperous cities – though even its early colonisers could never have imagined the commercial prowess this tiny country would take on in the decades that followed. Today, Singapore is virtually synonymous with finance, modernity and wealth. And yet in the wake of the global recession, that reputation left its banking sector in tatters and ushered in its worst recession in an otherwise remarkably affluent 44-year history. While all this spelled disaster for the city-state’s legions of bankers, it largely failed to dent living standards, and so the culturally diverse inhabitants of Singapore still enjoy a GDP per capita well above that of neighbouring countries. What’s more, remaining true to their heritage, Singaporeans have retained an eye for spotting good business opportunities in the midst of difficult times – relying more than ever on tourism to prop up the ailing economy. Among some of the island’s most popular attractions are numerous wildlife sanctuaries, which is perhaps not surprising given that its name derives from the Malay for ‘Lion City’. To name just a few, there is the National Orchid Garden, Jurong Bird Park and the Singapore Zoo.

Country Facts

Airports: Keflavik International Airport (KEF)

Currency: Islensk Krona (ISK), plural kronur, divided into 100 aurar

Language: Icelandic, but English is widely spoken

Country Facts

Airports: Caracas (CCS)

Currency: Bolivar (VEB), which is divided into 100 centimos

Language: Spanish

Country Facts

Airports: Singapore Changi Airport (SIN)

Currency: Singapore Dollar (SGD), which is divided into 100 cents

Language: English, Mandarin, Malay and Tamil

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TravelnomicsQuarterly Industry InsightQ1 2010

JamaicaBlessed with a wealth of minerals and a climate ideally suited to

agriculture, the Caribbean island of Jamaica has never been short of natural resources. Though its post-independence history was wracked by instability, economists say the former British colony now has one of the rosiest outlooks of any West Indian nation. The sky-high inflation of the 1990s has finally been tamed, and many travellers are re-discovering

the appeal of this exhilarating tropical paradise. Of course, vacationers touching down in Jamaica for the first time will

instinctively seek out elements of the Rastafarian culture it is best known for. However, while these symbols undoubtedly form an integral part of the country’s rich cultural tapestry, they are little more than the icing on the cake for what has become one of the most diverse places in the Caribbean. Dotted throughout capital city Kingston is a wide array of theatres, museums, galleries and venues – often deploying Rastafarian culture as a springboard from which to craft modern and unique art-forms. Though still a firm favourite, reggae has in many ways been superseded by the likes of raga, dancehall, ska and dub, often incorporating elements of American rap music to create a hypnotic fusion of Western and African culture. Alongside its nightlife, Jamaica’s pristine beaches and idyllic waterfalls offer a perfect counterbalance to the fast-paced excitement of downtown Kingston. Jamaica’s economy is still underperforming, so few would dare to suggest it is out of the woods yet. But with its unique cultural identity and a slowly improving economy, travel experts say this island must surely be one to watch in 2010.

irELand Ireland, the small island on the western edge of Europe, has 4.5 million residents, but it’s a big hitter when it comes to music, literature, sport and the ability of the locals to find the craic in every situation. Ireland experienced a sharp economic plunge in the past two years, but thanks to its association with the European Union, Ireland is on the right track to reclaim its economic stability.

Buffeted by the Atlantic Ocean on the west coast and the calmer Irish Sea on the east, there is nowhere in Ireland that is more than 50 Kilometres from the ocean. The soft, rolling hills are made for walking, climbing, biking and horse-riding and the many golf courses are lush and, of course, green. The seas around the country give up plentiful and delicious seafood and it’s still largely family-run farms produce the meat and vegetables for its hearty cuisine.The Celtic Tiger may have roared through the country over the past two decades and brought unprecedented wealth - and immigrants - to its shores, but with the departure of this beast, the Irish are returning to the basics and appreciating what they have rather than mourning what they’ve lost. Ceol agus craic (music and fun) is the order of the day in the towns and cities of Ireland, and the hospitality industry is working hard to lure the tourist dollar with discounted rates and special offers.

Country Facts

Airports: Norman Manley International Airport (KIN), Sangster International Airport (MBJ)

Currency: Jamaican Dollar (JMD) is divided into 100 cents

Language: English and patois, a mixture of English, Spanish, and various African languages.

Country Facts

Airports: Dublin Airport (DUB), Cork International Airport (ORK)

Currency: Euro (EUR)

Language: English, Irish (Gaelic)

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ukrainEUkraine is a recent newcomer on many a Western traveller’s radar. Independence from the Soviet Union came in 1991, but the Orange Revolution in 2004 brought the country to the public’s attention once again. This country of 46 million people is the eighth-most visited one in the world, but it’s also currently touting the worst inflation rate in Europe. Its currency, the Hryvnia, was the second-worst performing currency in the world in 2008, according to Bloomberg. Eastern Europe’s harsh recession plunged Ukraine into stagflation but visitors will discover a wealth of attractions in Ukraine. Key to the country’s popularity is its long and stirring history. More than 500 cities in Ukraine were established more than 900 years ago and almost 5,000 of its villages are more than three centuries old. Kiev, the capital, is one of the oldest cities in Eastern Europe.

When towns such as Tira, Olviya, Chersonese and Panticapea were excavated, their origins were found to date back to the 5th century. Medieval, Italian-built fortresses dot the Crimea. There are more than 600 museums that exhibit and shine a light onto the different periods in Ukraine’s history.

sEychELLEsThe Seychelles is made up of 115 islands, all sun-bathed and basking in the Indian Ocean, about 1,500 Kilometres east of mainland Africa and northeast of Madagascar. The sun beats down - temperatures range between 75 and 90 degrees Fahrenheit, (24 and 32 degrees Celsius) year-round, the beaches are sugar soft and the waters are turquoise, clear and teeming with colourful marine life.

Mahé, Praslin and La Digue are the main islands - the ones most travellers visit. Other islands on the tourist trail include Bird Island, Cerf, Chauve Souris, Cousine, Denis Island, Silhouette and Ste. Anne.

The islands without accommodation, which include Anonyme, Aride, Conception and Moyenne, are popular for day trips, snorkelling, diving and wild-life watching.

The Seychelles boast the Vallée de Mai on Praslin, once thought to be the Garden of Eden, where the suggestively shaped Coco-de-mer nut grows, and Aldabra, the world’s largest raised coral atoll, home to the world’s largest population of giant tortoises.

Country Facts

Airports: Boryspil international airport (KBP)

Currency: Hryvnia, divided into 100 kopecks

Language: Ukrainian

Country Facts

Airports: Mahe Island (SEZ)

Currency: Rupee (SCR), divided into 100 cents

Language: Creole, English and French