Britons stick to short-haul to save cash

Britons holidayed closer to home this summer and shunned the US due to the increase in air passenger duty and poor exchange rates, according to data released by American Express Global Foreign Exchange Services.

Its Currency Index, which tracks the top 25 currencies for UK travellers each quarter, found European destinations such as Croatia rose in popularity this year, as did Scandinavian countries. Norway jumped 11 places on the index to settle in 20^th position.

Perhaps surprisingly given the political unrest in the Middle East and Africa, Egypt and Turkey remained the most popular currencies for Amex clients, although sales of Egyptian pounds fell by a third in the last year. Clients also bought fewer US dollars this year compared with 2010.

Director Terry Perrin said: “At American Express, we are seeing an ongoing decline in the volume of US dollars purchased. The decline is partly due to the cost of airport tax for UK travellers when visiting the US, which can be up to 400% more than if travelling in Europe, and also due to the exchange rate of the US dollar compared to the pound not being as competitive as previous years.

 “In comparison, we have seen a rise in the volume of the Euro and other European currencies such as the Croatian Kuna and Bulgarian Lev purchased by Britons. With the US offering less value for money, Brits are increasingly opting to holiday closer to home this year to see their pound stretch further”.

That said, hosting the Rugby World Cup finals pushed New Zealand up three places to 12^th position.

By Linsey McNeill