Since the announcement of the EU referendum the pound has plummeted in relation to other currencies, leaving Brits going on holiday to many destinations with less spending money.
Fluctuating exchange rates coupled with the referendum have seen traditionally popular holiday destinations becoming more expensive.
According to the Post Office, the value of the pound has fallen against two-thirds of it 40 best-selling currencies. Sterling has slid to a seven-year low against the euro and increasing uncertainty regarding Brexit could see it drop even further.
To prevent holidaymakers being impacted by the Brexit effect, currency specialist FairFX has put together a list of 12 alternative holiday destinations to visit this year, where you can get twice as much for your money.
The FairFX alternative dream destination guide features Russia, South Africa, Australia, Canada and Malaysia which all offer significantly better value thanks to long-term favourable exchange rates. The guide also points consumers towards more off-the-beaten-track destinations including Nepal, Angola, Iran and even the Himalayan kingdom of Bhutan – billed as one of the happiest places on earth.
Darren Kilner, currency expert at FairFX, said: “The 2014 Scottish referendum had a significant impact on currency. When the polls signalled that it was possible for a yes vote to come out on top, Sterling began to lose ground to the euro with rates varying over 3% within a short period of time, costing travellers who needed to buy £1,000 worth of Euros during that time over £30 more.
“While many people will have an idea of where they’re planning to holiday this year – with Europe and America being the most popular places to travel, many consumers don’t realise how big an impact currency rates have. While you may know that certain rates are not as strong as they were, it doesn’t always translate into how much extra this will add to the cost of a holiday. When you understand that you can save hundreds of pounds by choosing your holiday destination wisely, it suddenly makes new, alternative destinations much more attractive.”
Research by Post Office Travel Money for its Holiday Money Report revealed that lower prices in some European resorts could cancel out the impact of the sterling slide.
In Portugal’s Algarve and on the Greek island of Corfu, meals and drinks will cost UK visitors 13% less than a year ago because local price falls far outweigh sterling’s slide. Prices are also cheaper in Sorrento, Italy (down 5%) and on par with 2015 on Spain’s Costa del Sol.
Outside the eurozone, while the Croatian kuna (sterling -6.9%) and Bulgarian lev (-5.7%) are among the 10 currencies against which sterling has fallen most, local price falls mean the Post Office barometer of tourist staples is down 11% in Sunny Beach, Bulgaria, one of Europe’s biggest bargain resorts, and 4% cheaper in Zadar, Croatia.
Currencies for many popular long haul destinations including Mexico, Malaysia and Thailand have also weakened against the pound, making them a good bargain bet in 2016.
Andrew Brown of Post Office Travel Money said: “This is definitely a year when it will pay people to do their homework before booking a destination. With sterling’s recent fall in value against more than half of our bestselling currencies, you can’t blame them for thinking twice about where to go on holiday. However, canny travellers will be ‘quids in’ if they opt for destinations with weak currencies or those where local prices are low. Better still, if they combine both elements their holiday money will stretch further.”
Alternative dream destination guide