March 10, 2006
HarryTho 3/10 Natalee Holloway CommentaryTopics: Natalee Holloway
This evening, I thought I would enlist the input from one of our readers from Curacao and explore the effectiveness of the boycott: A Discussion of the exchange rate between the US dollar and the Aruban Guilder seems like a good place to start:
Where Aruba's economy is linked to the American market, its constitution is linked to the Netherlands (since 1634). The Netherlands by constitution have the obligation to guarantee Aruba's well-being. (A guarantee laid down in the "Statuut" (click on Statuut):
Aruba's tourism market is mainly directed to the U.S., but there is a considerable flow of tourist coming from Europe, especially the Netherlands. There are three currencies involved. Aruba has its own currency: the Aruban Guilder or Aruban Florin. The exchange rate to the dollar is fixed: you can see this in the following graphic:
Dollar - Aruban Guilder last 12 months:
The Euro is up about 20% to the dollar. This means that for the Europeans, shopping in Aruba is about 20% more economical than in the Euro-zone. It's a cheap holiday destination right now.
Dollar- Euro last 12 months:
The Holloway case does get attention in Europe (not as many as in the US though) but attention is publicity. It's free publicity. And because it's a cheap destination for the Europeans; with their strong currency a few Europeans can make up for the loss of US-tourists.
Euro - Aruban Guilder last 12 months.
It seems strange, but the publicity surrounding the boycott actually improves the Aruban economy. Apparently, the Aruba Tourism and Hotel Association (ATAHA) should be pleased with the rantings of the Alabama Legislature ... they bring good fortune to Aruba. Maybe the Netherlands Antilles, whose tourism intake from Europe is over 50%, should offer the Alabama Legislature a commission for enacting such a bountiful advertisement campaign.
I will update over the weekend in the comment section. Our next HarryTho editorial will be Monday evening.
Posted for HarryTho
Posted by Richard at March 10, 2006 8:44 PM
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