A sunny forecast for holidaymakers as prices fall abroad
There’s good news for holidaymakers planning trips in 2016 as the Worldwide Holiday Costs Barometer from Post Office Travel Money reveals that prices are down in over half of the 44 resorts and cities surveyed.
The Post Office barometer monitors the price of eight tourist items – including dinner for two, drinks and suncream.
In addition to some local price-cutting, the powerful pound has helped prices plummet by around 15-20% in many resorts and cities worldwide, and by up to 31% in Penang, Malaysia. With three-quarters of the Post Office’s 40 bestselling currencies weaker against sterling than a year ago, the majority of holidaymakers heading overseas should find that their money stretches further.
Source: Post Office. Data relates to internet rates for exchange of £500-£999 on 4 January 2016.
Key findings include:
- Portugal’s Algarve tops the Worldwide Holiday Costs Barometer chart for the first time in five years as a result of low prices for meals and drinks
- The Bulgarian resort of Sunny Beach is a close runner up, just 17 pence behind the Algarve and registering a similar year-on-year price fall of 18%
- Prices are down by 20% in Cape Town due to sterling’s strength against the South African rand, making it the lowest-priced long haul destination surveyed and the third cheapest overall
- The weakness of its currency, the Hungarian forint, has helped Budapest to overtake the Czech capital of Prague as the best value European city break destination
- Tokyo is looking far more affordable for UK tourists due to a combination of falling prices and the weak Japanese yen
- But the dominant US dollar has had a negative impact on the prices UK holidaymakers can expect to pay in the USA. Likewise, those travelling to most Caribbean destinations or the Gulf States also face rises as their currencies float alongside the US dollar.
Compare the costs of a range of essential holiday items in popular destinations around the world with our Travel Barometer