Introduction Tourists are individuals or groups of people who depart from their normal environment for a duration period of more than twenty four hours and less than one year for leisure purposes, business purposes or any other purposes that they can only get from their tourism destinations for example wildlife, old building s, historical sites, etc. Through these movements tourists exchange their domestic currencies to the foreign currencies of the countries which they intend to visit and for this reason there is the exchange of the euro and the pound. The euro which is symbolized ( ) and coded (EUR) is a currency that is used as the official currency by seventeen members of the twenty seven European Union members and they are referred to as the euro-zone. While the pound symbolized (£) and coded (GBP) is used as the official currency of the United Kingdom and her overseas territories and they are referred to as the Sterling zone. Thus whenever a tourist intends to visit either the euro-zone from the sterling zone and vice-versa there has to be the exchange of the euro to the pound and this depends on the rates of exchange between the two currencies on the day. Tourism and rates of exchange Exchange rates between two currencies is a major determinant of the number of tourists willing to visit a country within the euro-zone or the sterling zone because they consider how much of the other currency they will get after exchanging it with their domestic currency, this mostly depends on the exchange rate regime that has been adopted by the government and include. Fixed exchange rate regime-this is where the government fixes the rates at their value of choice and incase it increases or falls the government interferes to maintain the fixed rate, this at times may discourage tourism as the fixed rate might be too high compared to their domestic currencies. Flexible exchange rate regime- this is where the exchange rates depends on demand and supply ,this is better preferred by tourists as it varies from day to day and they can time when it is favorable against their currency and they can easily take advantage. Floating exchange rate regime-this is where the exchange rate depends on the foreign exchange market, its favorable to tourists because it varies in time and at some point it will be in the favor of their currency and they can decide whether to visit the county.

Linked exchange rates-this is where the domestic currency is linked to another currency, it does not apply between the euro and the sterling pound because they are both major currencies in the world economy it mostly applies in countries with weak currencies linking them to major currencies e.g. morocco has linked her currency to the euro. The sterling pound is more valuable compared to the euro even though due to rapid increase in value of the euro in the world market it is gaining value against the pound, the value of the pound against the euro therefore encourages tourists in the sterling zone to visit the euro-zone and discourages those in the euro-zone to visit the sterling zone as they will have to incur losses due to the exchange rates. Conclusion The exchange rates between the euro and the pound are very crucial on the number of tourists who are willing to visit the countries.

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