Interest rate fluctuations affect holiday intentions
The number of Aussies planning to take an overseas holiday in the April quarter of 2012 fell slightly – and interest rates could be to blame.
A new report published by Roy Morgan Research has shown that 71 per cent of Aussies said they would take a foreign break in the next 12 months, which was down from 72 per cent in the January quarter.
Although the decline was only minimal, the organisation's international director of tourism, travel and leisure Jane Ianniello said that unpredictable interest rates may have deterred people from spending money on a vacation.
She said the dip came in February when the nation's major banks raised the rates attached to their loans and mortgage products independently of the Reserve Bank of Australia.
"However, holiday intention is still higher than the April quarter 2011. It will be interesting to see whether the interest rate cuts in May and June will boost holiday intention further," Ms Ianniello remarked.
Have a question about interest rates? Ask the money gurus at Mozo Answers.