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Holidays - the best bang for your buck

By Sarah Modlock

January might be the most popular month for us to book holidays (ask Easyjet) but it's likely the freezing weather will give sales another boost this month. I read some alarming news recently that the credit crunch and slumped value of the pound is sending sales of caravans soaring. I know, I know, I'll get letters. I'm all for spending money in the UK, though so holidaying at home is a great way to avoid expensive currency costs. If you are heading abroad, however, then this piece is for you.

Europe

It wasn't that long ago that we heard about shoppers 'on the Continent' buying from UK websites so they could take advantage of the euro's strength against the pound. At the time, we were told that holidays in Europe would cost a packet and to look elsewhere. The good news is that the balance is tipping again and holidaymakers planning trips to Europe may find the pound in their pocket stretching further than they thought because the euro has fallen in value against sterling by more than 7% since late December - bringing many other European currencies with it.

The sterling boost means that European destinations fill six of the top ten places in the new Worldwide Holiday Costs Barometer of tourist items in 27 countries, researched by Post Office Travel Services, the UK's largest foreign exchange provider.

As sterling recovers from its December doldrums, the Post Office report identifies the best value holiday hotspots in Europe and further afield, based on the rising exchange rate and local tourist costs. Cheapest of all are Hungary and the Czech Republic, which will make Budapest and Prague good city choices for UK tourists taking short breaks.

For longer stays Turkey, Bulgaria and Croatia are cheaper than any of the eurozone countries, although Spain has made it into the top ten lowest-priced destinations and you need to bear in mind the cost of the trip itself (see further down). Key eurozone destinations like Greece and France are also looking more competitive.

The table below shows what you can expect to pay abroad for basics such as a cup of coffee or evening meal:

HUNGARY CZECH REP. THAILAND SOUTH AFRICA MALAYSIA
Cup of coffee
£1.14
£1.14
£1.25
£0.87
£0.57
Bottle of Heineken
£1.77
£2.47
£1.95
£1.16
£2.47
Coca-Cola
£0.88
£1.71
£0.87
£0.65
£0.41
Mineral water
£0.53
£1.03
£0.54
£0.51
£1.03
Suncream (factor 15)
£6.00
£4.56
£3.25
£4.35
£6.68
Insect repellent
£2.29
£1.14
£3.25
£1.45
£1.75
Marlboro Lights cigarettes
£2.01
£2.47
£1.08
£1.55
£1.44
3 course meal with wine
£21.18
£22.80
£27.08
£32.64
£30.84
TOTAL COSTS
£35.72
£37.32
£39.27
£43.18
£45.19

BULGARIA KENYA CROATIA SPAIN
Cup of coffee
£1.53
£1.06
£2.02
£1.61
Bottle of Heineken
£3.05
£1.35
£2.14
£2.38
Coca-Cola
£1.53
£0.67
£1.34
£1.91
Mineral water
£1.53
£1.35
£0.94
£1.43
Suncream (factor 15)
£2.54
£2.70
£8.03
£13.34
Insect repellent
£2.54
£2.02
£4.02
£2.86
Marlboro Lights cigarettes
£1.63
£2.02
£3.35
£3.00
3 course meal with wine
£38.17
£40.47
£40.15
£38.12
TOTAL COSTS
£52.52
£52.60
£61.58
£64.18

Further afield

South Africa looks an unbeatable option for long haul tourists this year. The latest Post Office comparison of currency movements reveals that the rand is now worth over 8% cent less than a year ago and this puts SA in fourth place on the list of 27 countries for the cheapest shopping.

Kenya is another hotspot for 2009 because sterling has dropped significantly less against the shilling than against currencies for other longer haul destinations including Egypt, the USA and Thailand. A combination of hotel and flight discounts and the low tourist costs make the destination an attractive prospect.

Andrew Spice of Post Office Travel Services said: "UK holidaymakers will be checking prices carefully this year and this means that the winning destinations will be those that offer good value not just for flights and accommodation, but for tourist staples like meals out and drinks.Exchange rates are still unpredictable and it will pay people to keep a watchful eye on movements as well as considering easy ways to save themselves money.

"By purchasing commission-free currency before leaving on holiday, UK travellers will avoid paying higher charges at airports and overseas at ATMs."

Weigh up currency with cost of the trip

It all used to be so simple. Now it seems that despite your travel money going further in Turkey and Egypt, these destinations are not cheap to get to. Bookings to Turkey and Egypt for summer 2009 have risen 8%, compared to a fall of 22% to traditional favourite Spain. Sharm el Sheikh is seeing the biggest increase in demand, with bookings up 49%. Co-operative Travel - the UK's biggest independent retailer - puts this increase in bookings down to more British holidaymakers seeking cheaper holidays and guaranteed sunshine. However, the Co-op warns that extra demand over the last two years has led to significant price increases, which means that these resorts may no longer offer the value for money of previous summers.

Currency % +/- 2009 v 2008 January 2009 January 2008
South African rand
8.25
13.70
12.66
Turkish lira
3.80
2.23
2.15
Hungarian forint
-9.08
283.15
311.45
Kenyan shilling
-13.87
106.68
123.86
Czech koruna
-14.30
27.13
31.65
Croatian kuna
-16.32
7.54
9.01
Bulgarian lev
-17.01
1.97
2.37
Euro
-18.32
1.05
1.28
Malaysian ringitt
-19.69
4.88
6.08
Thailand baht
-20.69
47.04
59.31
US dollar
-25.78
1.39
1.88
Egyptian pound
-26.93
7.11
9.73

Post Office® foreign exchange rates on 19 January

"Spain is one destination where prices have held steady since last year and it may be that this traditional favourite will offer holidaymakers the best value if they book early enough," says Trevor Davies at The Co-operative Travel.

The firm's research confirms shows that while all prices for 2009 holidays have risen by an average of 18%, a typical family holiday to Dalaman, the leading Turkish destination, has risen 27% (from £1,154 to £1,466), while an equivalent holiday to Majorca has risen just 3% (from £1,455 to £1,502).

Top Holiday Destinations for UK Holidaymakers - Summer 2009

1. Majorca

2. Lycian Coast (Turkey)

3. Orlando, Florida

4. Larnaca (Cyprus)

5. Costa Dorada

6. Ibiza

7. Menorca

8. Bodrum Peninsular (Turkey)

9. Sharm el Sheikh (Egypt)

10. Bourgas (Black Sea coast, Bulgaria)


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