Holiday bargains as currencies fall

HOLIDAYS in America are cheaper for Brits than they have been for 10 years. But the real bargains can be had in Gambia, Jamaica and Mexico, according to research conducted exclusively for ThisIsMoney.co.uk.

The plunge in the US currency in the past 12 months means a British holidaymaker‘s £100 will buy around $172 compared with just $154 a year ago. So your holiday money will effectively stretch 12% further. The decline in the dollar, which is now at a 10-year low against the pound, means other countries that accept the currency – such as Cuba – are also cheaper.

Research by the Royal Bank of Scotland measured which holiday currencies fell most against the pound in 2003 making those destinations cheaper to Brits. The US was in fourth place.

Others offer even better value. In Mexico, the pound now buys 21% more pesos, while in Jamaica, sterling will secure 34% more local dollars. But the winner is Gambia, where coastal resorts are popular with winter sun-seekers. A pound will buy 41% more Gambian dalais than a year ago.

However, trips to the Continent have grown more expensive with the pound buying 8% fewer euros than a year ago. ?The UK traveller may get less spending power for their pound in some popular destinations so a change of scenery may be financially beneficial,‘ says Douglas Gowan, head of travel money at RBS.

?While some rates have decreased over the year, many long-haul destinations still offer good or increased value for money.‘

Currency swings depend on various economic factors. For instance, foreign investors dumped the dollar in 2003, causing it to slide, because they feared the US Government had taken on too much debt.

RBS cites three other holiday venues where the pound goes further: in Poland you can buy 10% more zloty, and in Norway and Indonesia you can buy 7% more kroner and rupiah.

Of course, some destinations are now more expensive. Trips Down Under were cheap for several years, but their currencies bounced back in 2003. The pound buys 16% fewer Australian dollars ($2.24 to £1) than a year ago, and 14% fewer New Zealand dollars ($2.56 to £1).

Currency swings in favour of UK tourists