Living: In Europe, the Dollar Talks

And it's saying that travel is again affordable for Americans

For the past decade, an American in Paris has been an endangered species. Because of the steadily declining dollar, romance atop the Eiffel Tower—or whatever else might take a tourist's fancy—has been out of reach to all but the most stratospheric budgets.

This year, however, Yanks can strike up a new chorus of "I love Paris in the springtime"—or summer, or fall. Reason: the dollar is back in grace. The exchange rate has improved 31% since a year ago, making U.S. purchasing power greater than it has been since 1969; and last week's election victory by François Mitterrand's Socialist Party gave the rate another jolt by further weakening the franc (see WORLD). Tourists have been quick to capitalize on the change. Despite stiff increases in transatlantic airfares, advance bookings from New York City to Paris are up 33%.

Among the attractions: a suite for two at the four-star Mayflower Hotel, one block north of the Champs Elysées, complete with terrace, breakfast, tax and service, costs $50.90 (scarcely $5 more than a Holiday Inn around Detroit). Lunch for two at an elegant restaurant (green salad, gigot d'agneau, Cabernet Sauvignon and chocolate charlotte) runs $40. More modest pocketbooks can find such café fare as a small quiche or an omelet at $2, a chef's salad at $3.55. A 14-block rush-hour cab ride comes to $2.25, sans tip.

While none of this is exactly in the rucksack range, it is affordable for many inflation-battered Americans. Says Dallas Housewife Beth Gilson, who is touring Paris with her insurance executive husband: "It's still more expensive than what I'm used to, but it's no more expensive than cities like San Francisco and New York." Even students are scrimping less. Susan Shafer, 19, of Michigan State University, who is on a ten-week foreign study program, shares a two-bedroom flat in the Latin Quarter for $16 a day, a price that includes two meals.

The new strength of the dollar is showing up in other nations as well. According to S.J. Taqi, editor of the Geneva-based Guide to Executive Travel Costs, Americans will find that "travel in Europe generally is going to be cheaper this year than for quite a while."

After several seasons of extraordinarily high prices, Americans in Denmark will get a break. The dollar has appreciated 22% against the krone, while prices at tourist-oriented hotels and restaurants have risen only 5%. A new service for tourists is Dan-menu, a standard two-course Danish meal in many restaurants in Copenhagen and elsewhere for about $7.

The dollar's strength against the lira more than cancels out Italy's inflation of 20%, so vacations there will cost about the same as they did last year. Even at that, Italy is still a relatively inexpensive place to travel by Western European standards. A first-class meal, including a succulent pasta, a main course of meat, fish or chicken, a salad, dessert, rich espresso coffee and a good bottle of Chianti, can easily be found for less than $26 per person. A meal in a more modest restaurant can go for as little as $8. Gasoline is high—$3.25 per gal.—but that is offset by fares on Italian trains: $14 for a first-class one-way ticket between Rome and Naples.