Thursday, September 22, 2022 10:26 am
The pound has weakened again against the dollar and is now down 18 percent year-on-year.
As the Bank of England prepares to raise interest rates later today, sterling has endured a rough ride in the currency markets over the past 12 months.
As a result, this makes holidays more expensive in 48 of the world’s 56 most-visited destinations.
The cost of travel to tourist meccas like Disneyworld and Ayers Rock has skyrocketed after the pound lost 18 percent of its value against the US dollar and nearly 10 percent against the Australian dollar.
Exchange £1,000 for US dollars this year and you’ll get $243 less than last year.
Meanwhile, short-haul trips to European favorites France, Spain and Portugal are becoming more expensive, with sterling falling 3 per cent against the euro amid rising UK public debt and fears of a weakening economy.
But as a map produced by travel money firm No 1 Currency shows, this isn’t all bad news for those planning mid-year or Christmas vacations.
In the green countries, the pound has appreciated. Red is where it sinks:
In the last year, the pound has appreciated in eight destinations worldwide: Turkey (76 percent), Sri Lanka (52 percent), Argentina (22 percent), Hungary (10 percent), Japan (9 percent). , Sweden (4 percent), Egypt (3 percent) and South Africa (0.2 percent).
|Sep 2021||today||Difference today compared to a year ago|
|1||Turkish lire||TO ATTEMPT||11.85||20.89||76.3%|
|2||Sri Lankan rupees||LKR||272.60||414.56||52.1%|
|8th||South African Rand||ZAR||20.18||20.23||0.2%|
|10||Costa Rica Colon||CRC||720.50||719.55||-0.1%|
|11||New Zealand dollars||CHF||1.95||1.93||-0.7%|
|18||South Korean Won||KRW||1622.50||1590.02||-2.0%|
|21||Colombian peso||POLICE OFFICER||5249.69||5031.00||-4.2%|
|42||Hong Kong dollars||HKD||10.64||8.95||-15.8%|
|46||United Arab Emirates dirhams||AED||5.02||4.19||-16.5%|
|51||East Caribbean Dollar||XCD||3.69||3.08||-16.6%|
|52||Trinidad & Tabogo Dollars||TTD||9.27||7.73||-16.7%|
The pound’s relative strength is greatest in Turkey, where runaway inflation hit 80% in August (eight times higher than in the UK) and the Turkish lira has lost three quarters of its value against the pound since that time in the last year.
Despite the current economic woes, Turkey remains a firm favorite among British sun-seekers thanks to its spectacular coastline, great food and warm Mediterranean climate.
For those willing to venture further, Sri Lanka’s balmy beaches are less than half the price (down 52 per cent) from 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 and fabulous cuisine.
Argentina is third. The Argentine peso has depreciated 22 percent against the pound sterling over the past year, with some economists warning it could fall further.
Discussion of the findings with City AM This morning, Simon Phillips, Managing Director at No1 Currency, commented: “British holidaymakers will need to budget carefully this year amid the domestic cost of living crisis and a falling pound abroad.”
He added: “Fortunately, there are still some countries where your money will go much further this year than last – offering all travelers the opportunity for new experiences and making memories that will last a lifetime. “
“Turkey, Hungary and Argentina all offer strong value for those seeking a mid-term getaway,” he concluded.