Confidence returning to holiday market – report claims
Sunday, 20 Jul, 2009
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Long haul price cuts, cheaper European city hotels and a drastic slashing of air fares are boosting foreign holidays, a new report shows.
The Post Office’s market intelligence on the currency purchasing trends for the first half of 2009 shows that eight out of the top ten fastest growing currencies in June were long haul destinations led by South Africa and Kenya.
Post Office head of travel Sarah Munro said: “Confidence seems to be returning to the holiday market and our currency sales in recent weeks indicate that UK tourists are responding to the great value deals available for overseas travel.
“Long haul package prices that compare very favourably with European trips have helped to stimulate demand for destinations like Kenya, Thailand, Egypt and Bali as the significant growth levels for sales of the currencies for these countries in June shows.
“In Europe, Turkey continues to be an outstanding success story and, as we predicted earlier in the year, currency sales have now grown to such an extent that the Turkish lira has overtaken the Australian dollar and is third only to the euro and US dollar.
“Despite continuing bad publicity, there’s a double helping of good news for UK tourists considering the eurozone this summer.
“The exchange rate has improved by almost nine per cent since the end of 2008, and some of the most popular resorts in Spain, Portugal and Greece have cut their prices this year to encourage tourists. For example, prices have plummeted in Portugal’s Algarve and are now 3.5 per cent less than a year ago, despite the weaker pound."
South Africa saw year on year growth of 176%, attributable in part to the British Lions tour while Kenya has recovered from last year’s riots to record a 171% growth in currency sales for the year to date – 109% in June alone.
Sales of the Indonesian rupiah have also been strong, making this the Post Office’s third fastest growing currency. Its success can be attributed largely to the popularity of Bali.
China has sustained interest generated by last year’s Olympic Games to take fifth place in the January-June growth table with yuan sales up 13% (38 per cent for June).
Thailand pulled back after a bad start to the year, when demand was dampened by political unrest. Sales of the Thai baht grew year on year by 35%, a response to the keenly-priced family package offers available for the school holidays, according to the survey.
Turkey looks to be Europe’s success story in a year when the strength of the euro has put traditional favourites like Spain, France and Greece under pressure. It features in the Post Office top ten fastest growing currencies for the first six months of 2009, as well as in the leading ten for June.
After a poor start to the year, euro and US dollar currency sales have picked up and sold strongly in June.
Sterling has recovered 8.6 per cent of its value against the euro since the turn of the year and sales of the currency have finally begun to pull back.
The Post Office had its best week of the year for the week ending July 8, when sales strengthened by 70% against those for the first week of May.
But Eastern Europe is continuing to struggle, with the exception of Croatia.
The biggest losers this year are destinations like Poland, Hungary, Bulgaria and the Czech Republic, even though sterling is worth significantly more in these countries than 12 months ago, the Post Office said.
POST OFFICE FASTEST GROWING CURRENCIES (January-June 2009)
1. Kenyan shilling +171%
2. Turkish lira +43%
3. Indonesian rupiah +38%
4. South African rand +16%
5. Chinese yuan +13%
6. East Caribbean dollar +13%
7. Croatian kuna +11%
8. Jamaican dollar +5%
9. Romanian leu +4%
10. Thai baht +2%
1. Kenyan shilling +171%
2. Turkish lira +43%
3. Indonesian rupiah +38%
4. South African rand +16%
5. Chinese yuan +13%
6. East Caribbean dollar +13%
7. Croatian kuna +11%
8. Jamaican dollar +5%
9. Romanian leu +4%
10. Thai baht +2%
POST OFFICE FASTEST GROWING CURRENCIES (June 2009)
1. South African rand +176%
2. Kenyan shilling +109%
3. Indonesian rupiah +77%
4. Turkish lira +53%
5. Chinese yuan +38%
6. Thai baht +35%
7. Hong Kong dollar +34%
8. Malaysian ringgit +26%
9. Egyptian pound +21%
10. Croatian kuna +19%
Percentage growth is based on a comparison of 2009 and 2008 sales figures
POST OFFICE TOP SELLING CURRENCIES (January-June 2009)
2. US dollar
3. Turkish lira
4. Australian dollar
5. Canadian dollar
6. Egyptian pound
7. Swiss franc
8. South African rand
9. New Zealand dollar
10. UAE dirham
1. Euro
2. US dollar
3. Turkish lira
4. Australian dollar
5. Canadian dollar
6. Egyptian pound
7. Swiss franc
8. South African rand
9. New Zealand dollar
10. UAE dirham
by Phil Davies
Phil Davies
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