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19 September 2008
Wash out summer drives boom in September currency sales
First Rate Exchange Services is reporting a boom in currency sales in the first weeks of September 2008 as UK travellers escape the UK’s wettest year on record1 with an exodus to warmer and drier climes.
First Rate, the wholesale provider behind the Post Office®’s market leading foreign exchange service, is reporting that despite the credit crunch, and concerns regarding the reliability of air travel following the recent collapse of a number of airlines, the dullest August2for almost 80 years has been the final straw for rain drenched Brits, resulting in a boom in currency sales in early September as holidaymakers head off in search of warmer and drier climates.
Mid-haul destinations like Egypt, Dubai and even Turkey look set to benefit most from a wash out 2008, capitalising on the perception of good value and lower living costs3. The latest sales figures provided to First Rate by the Post Office® reveal a growth during the first week in September of over 48 per cent in sales of Egyptian pounds and almost 44 per cent more Turkish lira than a year ago.
Sales of Egyptian pounds and Turkish lira were also 36 per cent and 31 per cent stronger respectively than in the previous week - the last of the August summer holiday period. And Dubai continues to make its mark as a major league destination, with year on year growth for early September of almost 22 per cent for sales of the UAE dirham.
The currency boom also extends to most other holiday currencies – especially the USA, where dollar sales increased by 65 per cent against the first week of September 2007, despite the weakening sterling exchange rate.
The September sales follow the pattern established throughout 2008. This reveals buoyant sales during the key holiday months of June, July and August. 15 of the 20 best selling currencies showed significant growth in sales over summer 2007 and also for 2008 as a whole.
The figures also suggest that the widely predicted drop off in demand for eurozone holidays has yet to materialise. Post Office® euro sales grew by 4 per cent year on year for January-August 2008 and accelerated in early September to a 12 per cent increase between the last week of August and the first week of September – as well as showing growth of 16 per cent year on year against the same week last year.
Eastern European destinations have remained popular with holidaymakers wanting to make their pounds go further. Slovakian koruna tops the Post Office® Fastest Growing Currencies5 table for summer 2008 – making Slovakia the latest in a long line of eastern European destinations, led by Bulgaria, to attract UK tourists looking for lower costs. A sales increase of 57.8 per cent between summer 2008 and 2007 is part of an ongoing trend in which demand for the Slovakian koruna has risen by 161 per cent in three years. However, an element of this increase may be at the expense of neighbouring Czech Republic, where sterling has dropped in value by almost 40 per cent against the koruna, making it one of the few currencies to register a fall in sales - 21 per cent – this year.
Gordon Gourlay, Managing Director, First Rate, said: “It seems the wash out summer of 2008 has encouraged UK travellers to seek out guaranteed sunshine and better value by heading to mid-haul destinations such as Egypt and Turkey.”
Despite the ongoing strength of the euro against sterling eurozone destinations have held their own. Also, savvy travellers are seeking out better value offered in Eastern Europe with Slovakian koruna proving to be the rising star. As the winter sports season draws near its likely that Slovakian slopes will be a popular destination as UK travellers continue to seek out winter holiday destinations which will make their pounds go further.”
Other currencies which have seen significant growth in demand are the Malaysian ringgit (+43.4 per cent), Chinese yuan (+30 per cent), Mauritius rupee (+22 per cent), Japanese yen (+16.9 per cent) and Mexican peso (+14.1 per cent) – all featuring, alongside the Egyptian pound, in the ten Fastest Growing Currencies and illustrating a growing trend for longer haul destinations.
China, the third fastest growing currency for summer 2008 with sales of Chinese yuan up over 30 per cent – and an astonishing 600 per cent year on year for the first week in September, also looks set to do well in the coming months after a spectacular performance at the Beijing Olympics.
Tour operators confirm this trend, reporting heavy bookings for the country. Andrea Loddo of Hayes & Jarvis points to a “roller ball effect for China with bookings piling in after the start of the Olympics and accelerating ever since.”
Chinese yuan are available on demand at more than 1,600 Post Office® bureaux de change, alongside all the key long haul currencies.
Note to Editors:
1 Met Office Stats August 2008 report
2 Centre for Ecology and Hydrology (CEH) at Wallingford – January to August 2008
3 First Rate’s comment about the potential for mid-haul resorts is supported by tour operator Hayes & Jarvis, which reports bookings up 13 per cent for October with an increased share of its overall autumn business for holidays to the Middle East and Egypt – 31 per cent against 22 per cent last year.
4 Post Office® 20 Best Selling Currencies 2008:
| Currency | Jun-Aug 2008 v. 2007 | Jan-Aug 2008 v. 2007 |
| 1. Euro | +0.6% | +4% |
| 2. US dollar | +9.35 | +5% |
| 3. Turkish lira | +14.9% | +21% |
| 4. Canadian dollar | -16.9% | -12% |
| 5. Australian dollar | -10% | -2% |
| 6. Swiss franc | +7.7% | +12% |
| 7. Egyptian pound | +18.7% | +22% |
| 8. Bulgarian lev | -14.9% | -8% |
| 9. Czech koruna | -22.4% | -21% |
| 10. Norwegian kroner | +7.1% | +13% |
| 11. Croatian kuna | +6% | +7% |
| 12. Polish zloty | +7.3% | +26% |
| 13. South African rand | -3% | -5% |
| 14. Swedish kroner | +13.9% | +18% |
| 15. Thai baht | +3.8% | +12% |
| 16. UAE dirham | +3.3% | +24% |
| 17. New Zealand dollar | +7.5% | +13% |
| 18. Danish kroner | +1.4% | +5% |
| 19. Japanese yen | +16.9% | 29% |
| 20. Hungarian forint | +17.3% | 40% |
5 Post Office® Top Ten Fastest Growing Currencies 2008:
| Currency | Jun-Aug 2008 v. 2007 | Jan-Aug 2008 v. 2007 |
| 1. Slovakian koruna | +57.8% | +55% |
| 2. Malaysian ringgit | +43.4% | +40% |
| 3. Chinese yuan | +30.9% | +26% |
| 4. Mauritius rupee | +22% | +19% |
| 5. Egyptian pound | +18.7% | +22% |
| 6. Hungarian forint | +17.3% | +40% |
| 7. Japanese yen | +16.9% | +29% |
| 8. Turkish lira | +14.9% | +21% |
| 9. Mexican peso | +14.1% | +17% |
| 10. Swedish kroner | +13.9% | +18% |
About First Rate Foreign Exchange Services:
First Rate is the UK’s leading provider of foreign currency services supplying over 12,000 retail outlets with a foreign currency service. It is the UK’s biggest foreign currency notes supplier and Europe’s major provider of traveller’s cheques and in the top five globally. First Rate sources currency through its associate business unit Bank of Ireland First Currency Services, one of the world’s leading wholesale currency operations.
First Rate can provide UK retailers and businesses with the following foreign currency services:
- Travel Money Online – a service enabling the ordering of foreign currency notes and traveller’s cheques securely via First Rate’s white label internet application
- Bulk provision of currency and travellers cheques for currency retailers
- End-to-end consumer order processing – totally outsourced, white label currency solutions for phone, internet or retail outlet order placement
To find out more visit www.firstrate.co.uk.
For further information, please contact:
Four Countries Communications
Ruth Barker
Tel: 0207 749 9219
Mobile: 07814 571128
Email: ruth@fourcountries.co.uk
Bank of Ireland UK Financial Services
Sandra Grandison
Tel: 0207 634 3477
Mobile: 07912 298013
Email: sandra.grandison@boiuk.com
First Rate Exchange Services Ltd is registered in the UK and Supervised by HM Revenue & Customs for Money Service Business (MSB): License number 12133160. First Rate is a joint venture between The Governor and Company of the Bank of Ireland (Registered in Ireland and passported into the UK for regulatory purposes) and the Post Office® Ltd. The Bank of Ireland is authorised by the Irish Financial Regulator and the Financial Services Authority for the conduct of business in the UK. Bank of Ireland First Currency Services is a division of The Governor and Company of the Bank of Ireland.