- As the money markets brace for today’s Bank of England interest rate decision, new data reveals how the plunging pound is affecting British holidaymakers
- New analysis of the most popular holiday currencies by the travel money specialists No1 Currency shows the pound has fallen against 48 and risen against just eight during the past year
- The impact is greatest for UK travellers heading to America, after sterling fell by 18% year-on-year to hit a 37-year low against the US Dollar
- But there’s relief for anyone booking a trip to Turkey, Sri Lanka, Argentina and Hungary, all of which are better value than this time last year
London, 22nd September 2022 — New data released today reveals the full extent of the pound’s slide against the currencies of nearly 50 of the world’s most popular holiday destinations, as well as a handful of hotspots where Brits can still get the best bang for their buck.
Sterling has endured a rough ride on the currency markets over the last 12 months, making holidays more expensive in 48 out of the 56 most visited global destinations, according to figures released by travel money specialists No 1 Currency.
The cost of trips to tourist meccas like Disneyworld and Ayers Rock have jumped after the pound lost 18% of its value against the US greenback and nearly 10% against the Aussie dollar. This year £1,000 exchanged into US dollars will buy you $243 less than last year.
Meanwhile, short-haul trips to European favourites France, Spain and Portugal are getting more expensive, with sterling losing 3% against the euro amid soaring levels of UK Government debt and fears about a faltering economy.
But as a map produced by travel money specialists No 1 Currency shows, it’s not all bad news for those planning a half-term or Christmas getaway. In the last year, the pound has made gains in eight destinations worldwide: Turkey (76%), Sri Lanka (52%), Argentina (22%), Hungary (10%), Japan (9%), Sweden (4%), Egypt (3%), and South Africa (0.2%).
The pound’s relative strength is greatest in Turkey, where runaway inflation hit 80% in August (eight times higher than Britain) and the Turkish Lira has shed three quarters of its value against the pound since this time last year. Despite its current economic woes, Turkey remains a firm favourite among British sunseekers thanks to its spectacular coastline, great food and warm Mediterranean climate.
For those willing to venture further, the balmy beaches of Sri Lanka are less than half the price (down 52%) they were this time last year. The island has long enjoyed a reputation as a surfer’s paradise, and also boasts a number of World Heritage sites as well as fabulous cuisine.
In the third spot is Argentina, famous for its big steaks, bold red wines, and the jaw-dropping beauty of Patagonia. The Argentinian peso has depreciated 22% against the pound over the last year, with some economists warning it could fall further.
Simon Phillips, Managing Director at No1 Currency commented: “British holidaymakers are having to budget carefully this year amid the double-whammy of a cost of living crisis at home and a sinking pound abroad.
“Thankfully, there are still some countries where your money goes much further this year than last – all of which offer travellers the chance to enjoy new experiences and make memories that will last a lifetime.
“Turkey, Hungary and Argentina all offer strong value for those aiming for a half-term getaway. Wherever you choose, make sure to take some local currency with you to pay for taxi fares and everyday expenses like food and drink, as these are all countries where cash is often still king – and not everywhere accepts card or mobile payments.
“Ordering your foreign currency before you leave gives you the chance to shop around for the best deal, helping your pounds go further, and that way you can avoid the terrible exchange rates typically offered at airport bureaux de change.”