With the adoption of the euro, targeted for 1 January 2008, Malta will be joining a monetary zone of more than 300 million inhabitants that represents the leading tourism destination in the world.

Economic and monetary union has enhanced competition in the eurozone, provided greater price transparency, stimulated cheaper cross-border payments and eliminated foreign exchange risks. These factors have contributed to the reduction of the costs of travelling in the single

currency area.

Therefore, with the introduction of the euro, Malta will be in a position to derive all these benefits that will definitely have an effect on tourists coming from the eurozone.

The euro will facilitate the life of tourists visiting our islands, as it will make travelling easier. Malta will certainly attract more visitors from the eurozone because exchange rate costs will be eliminated. Once the euro becomes our official currency, tourists will no longer be burdened with foreign exchange transactions and costs, and the divergences between buying and selling rates.

The cost and complexity of dealing with a different currency on arrival at our shores will cease to exist. It will be an absolute pleasure for tourists arriving from the eurozone to know that they can use the money in their pockets and that they do not have to queue in banks to change their money to the local currency. It is also worth noting that tourists’ cash can lose up to two-thirds of its value without making a single purchase, simply through currency transactions.

Consequently, tourists arriving in Malta from the euro area will have more money in their pockets due to the savings related to currency exchange transactions and costs. It is therefore up to the individual to decide how to spend that extra cash – be it in the form of choosing more expensive accommodation, or opting for a longer stay, or just simply spending more money while on holiday.

In actual fact, the euro will facilitate more spending, since a high percentage of our visitors already use the euro in their home country and they will therefore be familiar with the retail value of our goods and services. This means that it will be much easier for tourists from the eurozone to compare prices in Malta with prices either in their home country or in other euro area countries.

With the introduction of euro notes and coins in Malta, visitors from the eurozone will immediately benefit from the simplifications resulting from the adoption of the single currency. When European tourists travel to another European country, they obviously prefer to deal in euro rather than in a foreign currency. As from January 2008 they will indeed find it very

convenient to pay in euro when they visit our islands.

Josephine Rizzo is information officer of the National Euro Changeover Committee