Dutch vacation rates growing faster than ever
Summer break is finally here for most people, and that means that you might be preparing for a few days away from home. A vacation to get that real feeling of not having to go to work or school, and to wind down from what has been a stressful year. If you are going on a holiday, you have made the same decision as a vast majority of the Dutch people. The number of vacations is growing faster than ever even though, two years ago, the amount of vacations was decreasing. Have people finally regained faith in the economy after the crisis almost of 10 years ago? Today we will take a look at the Dutch economy to find an answer to this question.
Vacation rates already looked promising last year, growing with 3% to an amount of 36,7 million holiday trips taken by the Dutch people
Vacation rates already looked promising last year, growing with 3% to an amount of 36,7 million holiday trips taken by the Dutch people. 50% of this amount was to a foreign country, amounting to 19,1 million. This was a remarkable growth rate, since compared to the year before foreign vacations increased with 7%, while domestic vacations remained at roughly the same level. Another great growth can be seen in the amount of money spent in total on vacations, growing with 8% to an amount of 16,8 billion euros. Inflation was not even close to 8%. Therefore, we can say people decided to spend a lot more money on their vacations, not only resulting in more vacations but also in more luxurious ones. This trend does not seem to be over soon.
Can this immense growth simply be explained by the recovering economy? Ten years after the crisis, the Dutch Gross Domestic Product per capita has finally recovered, and is now back at the pre-crisis level.
Both employment rates and the Dutch national debt are on a quick way to being fully recovered
Both employment rates and the Dutch national debt are on a quick way to being fully recovered, as well. All these factors contribute to the Dutch trust in the economy. This trust basically reflects how much faith the Dutch people have in the health of the Dutch economy. After a crisis like the one of ten years ago, trust drops dramatically, which causes people to be afraid to spend money on things they do not really need, even though this behaviour is not healthy for the economy at all. This then results in the extremely long recovery time we have experienced the past ten years. Now that the Dutch economy is back at its pre-crisis GDP, and people seeing high growth rates, people are regaining their trust and willingness to buy more luxurious products or services, such as vacations. Another factor that contributes to a growth in the amount of vacations is the fact that a lot of people have saved expenses on vacations, missing those weeks off because it was financially not feasible. Now, though, it is possible again, and since trust levels are high, people are willing to spend just that bit more to make this vacation more special.
After a crisis like the one of ten years ago, trust drops dramatically, which causes people to be afraid to spend money
As said before, this economic growth does not seem to be stopping any time soon. Just as there can be a bad spiral during crises, we are now experiencing a positive one, in which, because of growth, people gain more trust and spend more money, which in turn causes more economic growth. It is a situation we must enjoy and definitely not take for granted. After the crisis and the long recovery time, we now have a bright time ahead regarding our economy. So if you can indeed afford it, do take this opportunity and enjoy some time away from home.
Max Kanne 05-07-2018References
https://www.nbtcniporesearch.nl/nl/home/article/groei-nederlandse-vakantiemarkt-in-2017.htm
https://www.libelle.nl/mensen/actueel/nieuws/weer-minder-nederlanders-vakantie/
https://nltimes.nl/2018/05/08/dutch-economy-still-growing-disposable-income-lagging-behind
https://ftalphaville.ft.com/2016/06/16/2166258/why-is-the-netherlands-doing-so-badly/