Where to holiday with a weak pound
28 August 18  /  Insights

If you are heading abroad in the coming months, you will most likely be traveling to an EU country. As 63% of us hope to travel to Europe within the next 12 months, Europe is the most popular destination for British holidaymakers.

However, in the run up to ‘Brexit day’ next March, the affordability of holidaying in Europe remains uncertain. Those of us who have visited such countries since the referendum will have already noticed that they are getting much less for their money, including less Euros to the pound.

With Brexit looming and still looking very uncertain, with a ‘no-deal’ Brexit looking increasingly likely, it is possible that the pound will remain unsettled until it becomes clear how Brexit is going to pan out and whether or not the pound will remain weak against the Euro.

This will have a large impact on our future holidays. Looking outside of Europe for your future holidays may be the way forward, as the pound has not fallen equally against all currencies and has in fact even gained against some currencies.

For example, since Brexit, the Argentine peso has fallen 72% against the pound offering an exceptionally good value holiday to Buenos Aires.

Russia may also be on your agenda as the EU and American sanctions have hit the Russian economy hard. Sterling has gained 13% on the Ruble.

Iceland is also significantly cheaper than it was a year ago; the Icelandic krona has fallen by 11% on the pound.

Traditionally known to be expensive, Switzerland is also cheaper than usual. The Swiss franc is 7% weaker than it was a year ago. So, if you fancy a skiing holiday, Switzerland may be your best bet.

Japan may also be an option as the pound has improved steadily against the yen in the past year, and despite its reputation for being expensive, Tokyo ranks as the number one long-haul holiday value destination, where the pound will go further.

The pound has also risen by 10% on the Indian rupee, so the sandy beaches of Goa and Kerala could also be an option. Likewise, the Brazilian real is 18% weaker than it was last year. For those wanting warmer climates, these may be worth looking into.