Best Affordable Travel Destinations Despite Weakened Norwegian Krone

Norwegian Krone Exchange Rate Makes Summer Travel More Expensive

In the past year, the Norwegian krone has weakened in relation to several important currencies, including the Swedish and Danish krone. This has resulted in increased expenses for Norwegians planning their summer holidays. The combination of significant price growth abroad and a weak krone exchange rate has made it more expensive for Norwegians to travel, according to Jan Ludvig Andreassen, chief economist at Eika Gruppen.

Despite the overall increase in travel costs, Andreassen suggests that neighboring Sweden is still a relatively affordable destination for Norwegians. Although prices have risen in Sweden due to the drop in the krone and the increase in food and drink prices, it remains one of the more favorable countries to travel to.

For those willing to venture further, Andreassen recommends considering Finland and Japan as travel destinations. Japan, in particular, offers a favorable exchange rate with the yen not rising as much as other currencies. Additionally, Japan’s low inflation has resulted in weak price growth in recent years, making it an attractive option for travelers. Andreassen also highlights the surprising affordability of stores like Hennes & Mauritz in Japan.

However, Andreassen emphasizes that it is more important to consider how you travel rather than where you travel. Norwegians can save money by adopting a more frugal approach, such as buying food from convenience stores instead of dining out.

Despite the weakened krone, Greece and Spain remain popular travel destinations for Norwegians, according to tourism group TUI. Communications advisor Anne Mørk-Løwengreen notes that Norwegians do not seem to be deterred by the krone exchange rate when booking their trips. Croatia, Turkey, and Bulgaria are recommended for those seeking more budget-friendly options, with luxury all-inclusive hotels being popular choices.

However, the increased expenses associated with summer holidays have raised concerns about credit card debt. Klaus-Anders Nysteen, CEO of Kredinor, warns that the exchange rate changes have made summer holidays significantly more expensive. Many Norwegians rely on credit cards to finance their trips, and Nysteen fears the consequences when the debt is repaid. The Norwegian Financial Supervisory Authority reported a NOK 1.4 billion increase in debt during the autumn of 2022, bringing the total debt collection to around NOK 116.6 billion at the start of 2023.

To mitigate the risk of financial problems, Nysteen advises customers to set up a holiday budget and avoid spending more than they can afford to repay. He also encourages those facing difficulties in paying their debt to seek assistance early to find suitable solutions.

Despite the challenges posed by the weakened krone, Norwegians are still eager to enjoy their summer holidays, with Greece and Spain remaining popular choices. By considering alternative destinations and adopting a mindful approach to spending, travelers can make the most of their vacations while managing their finances responsibly.

According to Jan Ludvig Andreassen, why does neighboring Sweden remain a relatively affordable destination for Norwegians despite the increase in travel costs

The Norwegian krone’s exchange rate has recently weakened against several currencies, making summer travel more expensive for Norwegians. According to Jan Ludvig Andreassen, the chief economist at Eika Gruppen, this combination of increased prices abroad and a weak krone exchange rate has resulted in higher expenses for Norwegian travelers.

Despite the overall increase in travel costs, Andreassen suggests that neighboring Sweden is still a relatively affordable destination. Although prices have gone up in Sweden due to the drop in the krone and rising food and drink prices, it remains one of the more favorable countries to travel to for Norwegians.

For those looking for more adventurous travel options, Andreassen recommends considering Finland and Japan. Japan, in particular, offers a favorable exchange rate as the yen has not risen as much as other currencies. Additionally, due to low inflation, Japan has experienced weak price growth in recent years, making it an attractive option for travelers. Andreassen also highlights the surprising affordability of stores in Japan.