Weak pound sends eurozone holiday costs sky high

The plummeting value of the pound will lead to a steep rise in the cost of trips to the eurozone this year.

But summer holidays elsewhere in Europe and in the US should offer better value, according to the annual Post Office Holiday Costs Barometer.

Bulgaria has again emerged as the cheapest European destination, although more expensive than in 2007, followed closely by Turkey.

With a rate rise against sterling of around nine per cent for the Turkish lira – compared with 15% for the euro, Turkey currently looks best value among the mass market holiday destinations. An evening meal out for two, including wine, costs £30.14, at least 20% less than in France, Greece, Portugal or Italy.

Spain emerges as the cheapest place to holiday in the eurozone – up to 15% less for tourist staples than the most expensive destinations, France, Portugal and Italy. 

Cheapest overall destinations in the Barometer were the long haul trio of Thailand, South Africa and Egypt. 

At £28.58 for 10 holiday commodities, including drinks and meals out, Thailand weighed in at under a third the cost of the same items in Australia and well under half the average price of the shopping basket across the eurozone.

Rated most expensive last year, the US has now overtaken the eurozone resorts to become the seventh cheapest of 16 destinations surveyed. 

The 2008 report puts the cost of a bottle of Coca-Cola in Florida at £1.60, compared with £2.94 in France, while sun cream will cost around £5 – half the price in Greece.

New entrants to the eurozone, Malta and Cyprus, have both seen price rises since they adopted the euro on January 1. However, Malta emerges from the survey as one of the cheaper destinations, second only to Spain. 

But Cyprus has become one of the more expensive resort areas in the survey.  Prices for the holiday items have risen by 32% since the changeover to the euro.  Allowing for the nine per cent rise in the value of the euro since the beginning of the year, this suggests a price hike of 23% on the items surveyed.

The Barometer also compares the cost of car hire across the 16 destinations and found Spain to be the most expensive country at £58.87 for one day’s rental.  In the eurozone Italy was cheapest at £16.82 whilst motorists in Florida would pay £28.06 and in Turkey £38.75.

Helen Warburton, Post Office head of travel, said: “Holidaymakers planning trips further afield this year will get excellent value for money by travelling to long haul destinations. 

“The pound is still strong against the US dollar and the new Open Skies agreement introduced this month should mean cheaper flights in the future.

“Elsewhere, sterling is up over eight per cent against the rand, making South Africa a good choice for UK tourists, and booming sales of Egyptian and Thai currency indicate that holidaymakers are already opting for trips where their pounds will stretch further.” 

She added: “Looking forward we believe that holidaymakers will be smarter about where they choose to go this year. 

“Prices vary quite significantly within Europe so people will be looking to visit countries where a lower cost of living will offer them more for their pound, like Spain and Turkey.”

by Phil Davies