Holidaymakers hoping to cut costs this summer but still keen to go abroad may want to think about destinations where they will get more for their money.
Picking somewhere where the pound is strong against the local currency is one way to get more bang for your buck, with Egypt and Turkey proving to be attractive options on that front this year. At the time of writing, sterling was up by 80% against the Egyptian pound since July last year, while against the Turkish lira it was up by 63%.
Tony Gibbons, the co-founder of the currency comparison website Best Travel Money, says getting good value when travelling abroad “is not just about going online to get the best rate for your travel money – it’s also about knowing how strong the pound is against other currencies”.
He adds: “The most popular destinations for Best Travel Money in the UK is Europe, particularly – and not surprisingly – Spain and France. The pound is only down a little against the euro since last July but add that to the increasing costs of hotels and eating out in France and Spain and it might be time to look at some alternatives.”
Of course, it’s complicated by the fact that some of the cheaper places may be pricey to get to.
Laura Plunkett, the head of travel money at the Post Office, says: “It will pay to be flexible when deciding on a holiday destination. The Egyptian pound, Turkish lira and South African rand have all been losing ground against sterling in recent months, while Latin American currencies such as the Mexican peso and Costa Rican colón have been surging in value.
“Sterling is also continuing to rise and fall against the euro and is currently slightly weaker than a year ago. We advise holidaymakers to watch daily exchange-rate movements before booking and buy their holiday cash when they see sterling move up against the currency for their chosen destination.”
Egypt
The collapse of the Egyptian pound in the past year means UK tourists will get significantly more for their pounds than 12 months ago. This week sterling was up by 80% against the Egyptian pound since this time last year.
Popular holiday destinations include Sharm el Sheikh, Hurghada and Marsa Alam, and, according to Post Office research, food and drink prices make Egypt one of the relatively cheaper options this year.
Its data showed that a bottle of local beer at a bar in Sharm el Sheikh would typically cost about £2.77, while a cup of coffee at a cafe is £1.16. A three-course evening meal for two including a bottle of house wine was calculated at £43.
Playing around with dates on the Skyscanner website indicated that the cheapest return flights from London to Sharm el Sheikh in August were about £400 for an adult.
Turkey
The lira has continued to tumble in value, exacerbated by uncertainty caused by Turkey’s recent election and its weak economy. At the time of writing, the pound was up by 66% year on year against the lira, giving Britons more than £190 extra on a £500 exchange, according to the Post Office.
A bottle of local beer at a bar in Marmaris would cost about £2.21, while a coffee at a cafe would cost £1.70, its research found. A three-course evening meal for two including wine was calculated to cost about £41.
A Skyscanner search this week suggested holidaymakers could fly from London to Dalaman return for about £200 an adult in August if they picked the right dates.
South Africa
This week the pound was up by 17% against the South African rand since July 2022.
According to the Post Office, a bottle of local beer at a bar in Cape Town would cost about £1.48, while a coffee at a cafe would cost £1.30. A three-course evening meal for two including wine was calculated to cost £32.51.
However, the cheapest return flights from London to Cape Town in August were coming in at above £800, according to Skyscanner, meaning the cost of getting there could well outweigh any savings.
Kenya and Rwanda
Sterling was up almost 32% against the Kenyan shilling year on year late this week, while it was up almost 24% against the Rwandan franc.
Paul Charles, the chief executive of the travel consultancy the PC Agency, says of Rwanda: “The pound goes a long way here … There’s a nonstop flight from London Heathrow to the capital, Kigali, and it’s easy to explore the country, whether in luxury or on a budget. The scenery is stunning, especially to the west, in an area known as Little Switzerland.”
According to the Post Office research, in Mombasa, Kenya, a bottle of local beer at a bar costs about £1.80, while a coffee at a cafe costs £2.04. A three-course evening meal for two including wine would set you back £42.
Kenya (we looked at Mombasa) is another location where return flights in August were looking pricey. Kigali appeared to be a bit cheaper, in terms of the cost of a return flight next month.
Japan
The pound was up by 10% against the yen compared with this time last year. However, Japan remains an expensive holiday option.
Portugal
Although this week the pound was down very slightly against the euro since last summer, many would-be holidaymakers will be looking at mainland Europe.
Charles says Portugal is “still remarkably good value, especially in inland areas of Alentejo or the far north near the Spanish border. Steer clear of the popular cities such as Lisbon and head for lesser-known parts such as Évora.”
Northern Ireland
“I still think the island of Ireland offers enormous value, especially Northern Ireland, where of course you don’t have to exchange any currency,” Charles says. “The Causeway coastal route is one of the most stunning coastlines in northern Europe, with wide-open beaches and terrific food in places such as Harry’s Shack near Portrush. There are also many flights each day.”
Gibraltar
Charles also cites Gibraltar, where again there is no need to exchange currency, as you can pay in sterling and there is no VAT payable on goods bought, “making it exceptional value”.
