I was just wondering now that the Euro is in full swing in Spain, what change has it brought to the tourist. Is it more expensive now than before? Or, is it about the same as before the change? I am beginning to plan my next trip to wonderful spain and was getting my budget ready, so I sure would appreciate any feedback from members that have recently travelled there, or from members in Spain.
Gracias!

Hey Booklady, good topic. Now that the Euro is in full swing, it is good to get feedback from those who have lived the changeover.

Personally, I argue with my friends about this topic. The problem is that I am not a good person to ask since I make a lot more money now than I did 6 months ago so I have not noticed the change if it has become more expensive, for me living seems cheaper now . So, I guess I would have to agree with my friends now when they say things have gotten more expensive.

I think that going out to eat and other forms of entertainment have gone up a bit but the day to day necesities have not. For example, dinner for 2 and a movie, play, etc... will run you a bit more but the weekly shopping will cost the same.

I also think that this affects the long time resident here (Expats and Spaniards alike) much more than the tourist. I do not think that the slight hike in the cost of things will be noticed by temporary visitors to Spain. What may make it seem more expensive to American tourists however is the weaker dollar of late against tyhe Euro. What on earth is going on over there? Why is the $ so weak these days? Ia m no financial wiz but I am sure someone out there can explain.

Saludos,
jer...

Saludos,
jer...

My theory is the weaker dollar is to strengthen the American economy. If it�s more expensive to travel abroad, Americans will spend their tourism $$ at home. If it�s cheaper to come to the USA, foreigners are more likely to make the journey when the dollar is down and leave their money in the USA. Likewise for exports and imports... the USA can export its products cheaper and flood other markets (since the American products will be cheaper *than normal* to purchase). Imported products will skyrocket in price and therefore persuade the American consumer to "buy American" (remember that campaign???)...

As jer says, I am no economist either, but it�s what makes the most sense to me. I see the dollar increasing in value again in the next 6 months or so.

With the Euro, I do think living here, generally speaking, has gotten more expensive. When a coffee used to cost 100 pesetas, it now costs 1 Euro (166,386 pesetas). Psychological pricing is used a lot here these days and I believe that many Spaniards erraneously are seeing the Euro and 100 pesetas as the same value when intellectually everyone knows that they aren�t the same.

Then comes the utilization of the centimos in special offers. I was "enga�ado" the other day when I purchased a melon. The big sign said 9 cents/kilo..however when the melon was weighed and then priced, the price worked out to 90 cents/kilo. I flipped. I went back to the sign and towards the bottom in small print it said ,90 centimos/kilo. I grabbed the first employee that I saw and explained that 9 centimos is NOT the same as ,90 centimos!!! Of course I got one of those "tell it to someone who cares" looks. So, I moved on...

Aaaaaahhhhh! Great melon story!

Good old Spanish customer service

Saludos,
jer...

Hey gang,

I have to agree with everything said in the forum. I can see how Madrid has gotten more expensive, but it is still cheaper than the US. I can also say that because I didn't stay there long and my US dollars went a long way.

When I return to live there, I will be singing a different story. I will have to watch my budget and try and make some extra money on the side. I am loosing my weight now and toning up so that I can strip and make some extra Euros. Hey, a brotha just keepin' it real.

I loved the melon story also. Customer service is so non-existent in Spain, that it makes you laugh.

Shawn

I noticed that the cost of touring in Spain hasn't changed much for me in the past five years. My two most recent trips, in 1999 and 2002 were almost identical when it came to buying a hotel room and eating out. I really haven't seen much difference in the euro, as shopkeepers weren't into ripping me off in the exchange...they were just trying to make change correctly!

That's true. Other than the open air 'mercadillo' settings,(outdoor travelling markets common especially during the summer 'e.g. el Rastrillo') Spain doesn't really have the 'bargaining' types of marketplaces that you would see, say in Central or South America. (Well, not as much now as they used to at least.) That means, the price you see is the price you pay. That's a much more American-friendly mentality I think. (Though I do like to 'regatear' (bargain) at the mercadillos as well! )

The only difference for Americans and Brits coming this way is that the Euro is a bit stronger now than it has been during the last few years. As of yesterday it was less than one cent from being an even 1 to 1 exchange with the dollar.

From the point of view of somebody who is earning Euros instead of dollars, I love the Euro! I think it gives us a security and stability that we would not have been able to achieve nor maintain with the peseta in that we're drawing off the strengths (as well as the weaknesses) of more economies than just the Spanish one. Imagine for a moment, Kansas trying to vie for itself and competing against the economies of Texas, California & New York. It wouldn't be too pretty.

That doesn't mean to say that the Euro won't continue to fluctuate. It most certainly will, but last summer when I travelled to the U.S., the Peseta-Dollar exchange was almost 2:1. That killed me! I've still got some credit card bills left over from that one. However, I'm going to the US again in one month. This time with Euros and a 1:1 exchange rate. I'm stoked!! Applebee's, TGI-Fridays & Chevy's....Here I come! I love this country....Well, BOTH of them!

This thread is getting interesting.

Ok, I can see why maybe Spain may seem more expensive ot some tourists since the Euro kicked in.

I am in Barcelona and was just at a really nice hotel picing up a cell phone from my last client of the weekend (God bless!),

Anyway, I was closing the deal at the reception desk and I'll be damned if the American couple next to me was not changing money at the hotel Poor misguided fools

My "wandering ear" picked up on the exchange rate of course and they were getting... drum roll please... 0.80 Eurocents for every dollar. Ok, according to www.xe.com one U.S. dollar today should buy "1.00969 EUR".

I know hotels are THE worst place to change money and the dollar is pathetically weak this month but pleeeeeeaaaaasssseeee!

So, I am sure that many tourists will do the same and see Spain as a more expensive place to visit these days.

I COULD HARDLY CONTAIN MYSELF AND NOT JUMP ON THE DOLLARS THAT THE COUPLE WAS CHANGING AND SCREAM "MY GOD MAN, ARE YOU INSAAAAAAAAANNNNNEEE?"

Not in the mood to be arrested what with me heading back to Madrid tomorrow.

Saludos,
jer...

WHen I was in Spain a few years ago, there wasn't much difference in cost of living.

The euro is almost worth as much as the dollar. So put it this way, one U.S. Dollar is worth somewhere around 95 cents. If you take one dollar to the bank, they will give you 1 euro but it is only worth 95 cents. Conversely, if you take the euro to the bank, you will get 95 U.S. cents. Does that make sense? The cost of living shouldn't be much different and pretty soon it's going to even out all across the european union.

Ok, let's not bring up the cost of living scandal again or I will be forced to cut short the life of the second thread since the launch of my forums almost a year ago

Yeah Saenz, yesterday was the first time in almost 2 years that the $ and the � were just about "even steven" (I would like to know where in the hell that expression comes from )

I am not sure that you have worked out the exchange thing right, can't figure out the logic you used If your example is true then the dollar and the euro were not exactly even on the currency market but the dollar was still worth a bit more (which it is today, just go to www.xe.com ).

Saludos,
jer...

The cost of living is almost the same as here in L.A. but the most influential factor is a person's lifestyle.

Jer, I'm not a bank, but exchange rates are constantly changing. At one point, the euro was worth more than the dollar but it has since declined and is now worth less. A little less than a dollar.

Hello,
This January 1st, marked the anniversary since the Euro became the legal tender in Spain, has there been any major changes in the overall cost of goods and services for you Madrile�os y Espa�oles? I guess what I want to know is if this has been a difficult change for the Spanish people.

Hey Booklady, very timely post to revive this thread

Yes, everything has become more expensive and it has been hard for most Spaniards to assimilate according to official sources.

The news here did a few special reports on the Spaniards and the Euro and it would seem that most still "think in Euros".

There are still loooooong lines at the Banco de Espa�a (only place to change your "Pelas" for Euros these days) and they estimate that there are about 350,000,000,000 pesetas still left out there to be changed over

They do chalk this up however to people finding the old pesetas at home and not to anyone actually refusing to change them over and trying to hold onto the old days.

Saludos,
jer...

Prices are being rounded up. The "redondeo" as its called is in full swing. Everywhere you go prices have been increasing as a combination of using the Euro and beginning of the new year. My favorite menu del dia (Viani on calle Principe) went up another �,20 and the monthly Metro A pass just surpassed �33. It is so bad that the government has brought back the Claymation of "Los Garcias" which they originally used to introduce the Euro in Spain to help raise public awareness.

I've never lived in Spain, but I've visited a couple of times in the last three years, my girlfriends family lives in Madrid, and I work in international economics so I'd like give everyone my 2 cents/pesetas. Sorry to bore anyone who hates economics.

1-My girlfriend's family all make the observation that things have definitely gotten more expensive. They all still think in pesetas.

2-I was there pre-changover around the holidays in 00-01 and again during the changeover in 01-02. Things were getting more expensive even before the changeover. I noticed higher prices in bars, restaurants, and for retail items almost across the board.

3-Spain has a huge underground economy. I'm not talking organized crime or drug trade. I'm talking about the maid who comes to clean your house, the guy working under the table in a bar or restaurant, or the small business owner. Spain has an official unemployment rate much higher than most of Western Europe or the US. But they also have an underground/non-taxed economy many times bigger than the other countries as well. When the changeover hit people were sitting on large piles of money they were afraid the government was going to find out about and tax, so they spent like mad on big items like cars and real estate. My girlfriend's mother bought and renovated a nice place overlooking the Plaza de Oriente and sold it for twice as much as she invested within one year or her initial purchase. This is an extreme example, but not altogether uncommon.

4-Spain's economy is seeing some of the price effects of fully integrating with Europe. A good way to measure the wealth of an economy is to look at the total size of the economy, divide by the number of people, and adjust for price differences (called PPP adjusted GDP). Portugal and Greece have less wealth than Spain. The other countries in the Euro zone have about 20-25% more wealth. Just like before, Euros have been coming to Spain in droves for tourism. Many of them are also now investing in Spain. If people with more disposable cash enter, prices will go up.

5-The labor market prices haven't gone up as fast as prices in general. In the US, people hire someone on and if things get tough, they don't hesitate to lay someone off pay them a week or two of severance and contribute a little to unemployment benefits if the employee is even eligible. In Spain the labor market is not as flexible. If the employee gets layed off, the employer must pay a fortune in compensation. It's good the employee gets this protection, but bad at the same time because companies are more hesitant to hire. My girlfriend was layed off here in the States this summer when her firm was struggling and she never told her parents because it's a foreign concept to them. Because the cost of firing someone in Spain is so high, people usually only get let go if they are incompetent enough to warrant it. So wages don't rise as much as prices have, making it more expensive for the typical Spaniard.

6-For the American tourist, a dollar doesn't buy the same number of Euro it did a year or so ago, so you're getting hit not only with higher prices a Spaniard feels every day, but also a less favorable exchange rate.

Before anyone thinks I'm trying to trash Spain, both the US and Spanish system have their warts. One is not better than the other, just a matter of preference. Life over here isn't always rosy either.

Don't let a little extra expense scare you. I love the country and the people more than any other place I've been, and it's still less expensive than a comparable experience in Italy or France.