Summer holiday boost as sterling powers upwards
HOLIDAYMAKERS are set to enjoy a bargain bonanza as sterling powers ahead of a wealth of foreign currencies, according to new figures.
Research reveals British sunseekers heading abroad can look forward to the pound stretching much further than it did a year ago.
Sterling is considerably stronger against 80 per cent of the top 40 holiday currencies year-on-year, Post Office Travel Money found.
Those prepared to travel further afield could reap the biggest rewards from the strengthening of sterling, the research suggests.
Many of the Caribbean islands, the United States and New Zealand, will all offer substantially cheaper living costs than a year ago.
Growth
The best deal in the study was found to be for those heading to the Dominican Republic, whose peso has plunged 17 per cent year-onyear against the pound, giving UK travellers nearly £72 worth of extra peso on a £500 currency transaction.
In Costa Rica, the colon has also fallen 17 per cent.
Overall sterling has risen in value against almost every currency compared with three months ago.
Andrew Brown, head of Post Office Travel Money, said: “Every long-haul currency in our top 40 – except for the Malaysian ringgit – has fallen against sterling since last February. With savvy travellers watching exchange rates carefully, there is good reason to believe more of them will consider holidaying further afield this year – especially as low-cost airlines are offering cheap airfares to the US and the Far East too.”
He added: “The huge growth in sales for these currencies provides clear evidence that growing numbers of holidaymakers are choosing destinations where they will get more for the pound – especially where the cost of living is also low.”
In particular, the situation is improving for tourists travelling to the United States and to other countries whose currencies are tied to the US dollar.
Holidaymakers to “dollar destinations” like St Lucia, Antigua, Barbados, Dubai and Oman, as well as the US, can expect their pounds to stretch 12 per cent further than they did a year ago.
Mr Brown added: “Even though sterling has dipped in the wake of last week’s stock market falls, gains over the past three months mean UK holidaymakers can look forward to seeing their cash stretch further abroad.”
However, the news is worse for those considering European breaks. Travellers to eurozone destinations will receive nearly £20 less in euro on a £500 currency transaction than a year ago.