One of the CFAI economics practice questions states that if a local currency appreciates, then tourism will be harmed because goods and services priced in local currency will appear more expensive to the non-domestic visitors who make up the bulk of the tourist trade
This statement does not make sense to me - for example if the rate appreciates from 5 USD / AUD 1 to 10 USD / AUD 1, then wouldn’t foreigners be able to purchase more USD with their AUD, thus making the goods and services in USD cheaper (helping tourism in USA). Instead CFAI says the opposite.
Thanks in advance