Holidays boosted by cheap dollar

The cheap dollar is sending British sunseekers flocking to the Caribbean, Florida and Mexico as never before, major tour operator First Choice Holidays said today.

Summer bookings for next year have surged 53 per cent ahead of this time last year as Britons spot the bargains to be had due to the beleaguered American currency. Cancun in Mexico, Florida and all the main Caribbean islands have benefited hugely.

First Choice chief executive Peter Long said: "These destinations are bouncing back incredibly. People are realising just how much spending money they're going to have when they get out there."

In recent weeks tourists have been offered a rate of about $1.85 to the pound - the dollar's lowest levels since 1992, when Britain was ejected from the European Exchange Rate Mechanism.