The devaluation of the pound against other currencies of the world, especially the ones which are used in the popular tourist destinations, could mean hard times for the holidaymakers. These destinations in Europe, Thailand and the Caribbean that are frequented by British tourists will be costlier for them to visit as a result and overall sterling has taken a dip in exchange value against nearly 80 percent of the world’s currency.
Last year alone, the pound has weakened against 38 currencies out of a total of 50, as per a report published by Moneycorp who are a research group specialising in foreign exchange studies. The worst devaluation suffered by the pound was against the Mexican peso with it dropping by 10.5% since last May. Travellers to Thailand would also find both travelling and staying there costlier with the 9.8% drop the sterling has suffered against the baht.
As far as travellers to the US go, it would be a tighter budget this year with the 4% dip the pound has suffered against the dollar. Turkey, Morocco and Bulgaria are also going to cost more to visit this year than last.
Where the pound has fared well is in Japan where it is 15% higher by value, meaning you get an extra £74 for every £500 exchanged to the Japanese Yen. Also, the Argentine peso would give a better return as it has risen by 11.7% and in South Africa the exchange rate would yield 11.5% more than last May. It would be the same case for travellers to Egypt and Brazil where the British Pound has also fared better than last year.
Australia is one region where the British pound has not been doing well for the last four years and this year is down by 4.7%. In terms of cost percentage, Australia would be 30% more expensive this year for travellers.
Matthijs Boon at Moneycorp states that the sterling has not performed well during the last 12 months making travellers spend more for their holidays this summer. He suggests checking out those farther flung places where the British pound has fared better, but reminds us that the cost of the air fare also needs to be factored in.