The Brexit vote last June brought tales of holidaymakers panic-buying euros and TV footage of chaos in the City, but new research shows it might not turn out to be as bad for the industry as many fear.
Post Office Travel Money’s latest Holiday Money Report shows that despite the events of 2016 and the collapse of the pound against the dollar and euro, sterling is still stronger against most popular currencies than it was in 2012.
Local prices have fallen or stayed on par with 2016 in more than a third of the destinations surveyed, which has prompted researchers to conclude that “by choosing carefully, the increased cost for UK travellers after the exchange rate has been applied can be restricted to between 10% and 13% extra in some of the most popular hotspots”.
Post Office Travel Money’s Andrew Brown said: “This year’s report puts 2016’s sterling fall into perspective. The pound may be weaker than 12 months ago but if you compare today’s rates with those of five years ago, sterling is stronger now against 60% of our 40 best-selling currencies.
“As many of these bestsellers also feature among our fastest-growing currencies, it appears that holidaymakers are becoming more switched on to where they will get the best value.”
The report singles out four destinations where sterling has gained significantly since 2012, led by South Africa (+41%), Mexico and Japan (+25%) and Indonesia (+20%).
The Post Office nevertheless said that currency would have an impact on destinations nearer to home this year. But there is further good news as the research revealed that costs in 50% of European countries will remain the same or have even fallen this year compared with last. The report adds: “By choosing one of these resorts or cities, holidaymakers can keep the increased cost caused by the weaker pound to a minimum.”
