Currency exchange rates are heavily influencing where Brits go on holiday, the Post Office has said.
Based on the sales of currencies, the annual Post Office Holiday Money Report said the strength of the sterling, low resort costs and new flights were major factors in where Brits were holidaying to, with Spain and Sri Lanka still the cheapest destinations for spending when in the country.
“There are growing signs that UK holidaymakers now check the value of sterling and the costs they face in overseas resorts before booking,” said Andrew Brown, head of Travel Money at the Post Office. “The destinations which benefited last year were those where the power of the pound put more money in the pocket or where the price of meals and drinks meant holiday cash stretched further – and often a combination of the two. We expect to see the same pattern emerging in 2013.”
Spain and Sri Lanka were named as the cheapest in resort when adding up the cost of eight items for the second year in a row. The cost for the eight items, such as a cup of coffee, glass of wine and an evening meal with drinks, was around GBP36.14 in the two destinations, a quarter of the most expensive countries Australia and South Korea.
Mexico continues to build its popularity with British holidaymakers, with the Post Office seeing a 34% increase in the sale of pesos. Sales of Turkish lira have also gone up with Brits now getting more for their money when in the country.
Based on its currency sales, value and new tourism initiatives, the Post Office has predicted growth for tourism to Lithuania, Qatar, Oman, Jordan and South Korea in the next year or two.
In the Far East, Vietnam and Bali overtook Thailand in the value barometer.
Post Office Best-selling currencies 2012
- Euro
- US dollar
- Australian dollar
- Turkish lira
- Canadian dollar
- Swiss franc
- Thai baht
- Egyptian pound
- UAE dirham
- Croatian kuna