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5 January 2009
Savvy travellers to expand horizons for best value in 2009
UK travellers looking for destinations where their cash will go further are advised to look to long haul destinations such as Thailand and South Africa, where lower living costs and better exchange rates are set to offer Brits best value during 2009, according to First Rate Exchange Services (First Rate).
Gordon Gourlay, Managing Director, First Rate said: “2008 saw sterling drop in value against almost every currency, and of course reach an all time low against the euro. As people across the UK plan trips overseas for 2009 they may find that long haul destinations are now within easier financial reach than some eurozone destinations.
“In turn, foreign exchange retailers should expect to see higher demand for currencies such as Thai baht, South African rand and Malaysian ringgit during 2009 as the effect of sterling’s slump against the euro encourages savvy travellers to expand their horizons to more exotic locations.”
Gourlay’s comments are in response to the production of the Post Office®’s Long Haul holiday costs barometer – First Rate is the wholesaler behind the Post Office®’s market leading foreign currency services.
The new Post Office® Holiday Costs Barometer of tourist staples in 15 long haul countries1 reveals that costs are significantly lower for tourists in five leading destinations than in the eurozone.
Thailand heads the field as the cheapest destination – 43 per cent less than Spain, lowest priced in the eurozone, and under half the price for meals, drinks and other tourist items than Italy, its top-priced member2. The Far Eastern favourite is around one quarter the cost for the same items in Barbados, the most popular Caribbean resort but also the highest priced in the Post Office® survey.
Despite its recent troubles, Thailand remains a great prospect for UK holidaymakers. Although the Thai baht may have strengthened against sterling prices remain very low in the country, as our new Holiday Costs Barometer shows, and the discounts now available to top resorts like Phuket and Hua Hin will make Thailand unbeatable value.
South Africa, where sterling is still stronger than a year ago, is another good option for holidaymakers – second only to Thailand in the Post Office® best value barometer. Another Far East destination, Malaysia, completes the top three in the Holiday Costs Barometer – and its low prices made its currency, the ringgit, the third fastest growing for the Post Office® in 2008.
Kenya could prove the surprise success of 2009. Fourth placed in the Post Office® barometer, the country is challenging hard to claw back its share of the holiday honey pot after post-election riots devastated tourism in 2008.
Like Thailand, Kenya has, according to long haul specialist Hayes & Jarvis, slashed the cost of both hotel accommodation and flights. This, combined with its low cost of living, should make the country a strong contender in a year when holiday choice is likely to be driven by price.
Mid-haul destinations, led by Egypt and Dubai, also look set to be popular in 2009. In 2008 the Egyptian pound was one of the Post Office®’s fastest growing currencies3 and shorter flight times, keenly-priced packages and a widely-held belief that costs in the country are lower than elsewhere should continue to keep Egypt in the spotlight.
Note to Editors:
1Post Office® Long Haul Holiday Cost Barometer provides prices for eight items, using data supplied by tourist offices of participating countries or by individual research. Its brief calls for the lowest average resort prices for each item and the Post Office® is reliant on the accuracy of information received from tourist authorities.
| ITEMS | THAI- LAND |
SOUTH AFRICA | MALAY- SIA |
KENYA | GAMBIA | EGYPT | BRAZIL | MAURI- TIUS |
| Cup of coffee Bar/café | £1.27 | £0.94 | £0.59 | £2.01 | £1.10 | £1.36 | £0.86 | £1.45 |
| Bottle of HeinekenBar/café | £1.98 | £1.26 | £2.56 | £1.34 | £0.94 | £1.79 | £1.54 | £1.81 |
| Bottle/ can of Coca-Cola Bar/ café | £0.88 | £0.71 | £0.43 | £0.67 | £0.94 | £1.07 | £0.86 | £1.21 |
| Bottle of mineral water Supermarket | £0.55 | £0.55 | £1.07 | £1.34 | £0.78 | £1.14 | £0.51 | £0.48 |
| Suncream (factor 15) Supermarket | £3.30 | £4.72 | £6.94 | £2.68 | £18.66 | £4.29 | £5.14 | £4.83 |
| Insect repellent Supermarket | £3.30 | £1.57 | £1.81 | £2.01 | £18.66 | £2.07 | £3.43 | £2.42 |
| Pack of Marlboro Lights cigarettes | £1.10 | £1.68 | £1.49 | £2.01 | £1.10 | £1.29 | £1.17 | £2.42 |
| 3 course evening meal (including bottle of house wine) in a local restaurant | £27.51 | £35.38 | £32.02 | £40.18 | £23.52 | £57.20 | £61.73 | £60.40 |
| TOTAL COSTS | £39.89 | £46.81 | £46.91 | £52.24 | £65.70 | £70.21 | £75.24 | £73.02 |
| ITEMS | USA | JAMAICA | CANADA | NEW ZEALAND | AUSTRALIA | MEXICO | BARBADOS |
| Cup of coffeeBar/café | £2.17 | £1.95 | £1.84 | £1.50 | £1.56 | £1.69 | £2.27 |
| Bottle of HeinekenBar/café | £3.62 | £1.66 | £2.46 | £2.79 | £3.64 | £2.25 | £2.65 |
| Bottle/can of Coca-Cola Bar/café | £2.17 | £0.78 | £1.38 | £1.50 | £1.95 | £1.21 | £1.13 |
| Bottle of mineral water Supermarket | £1.66 | £0.68 | £0.92 | £1.37 | £1.66 | £1.32 | £2.57 |
| Suncream (factor 15) Supermarket | £6.87 | £7.31 | £5.53 | £5.57 | £7.79 | £6.30 | £6.41 |
| Insect repellent Supermarket | £5.07 | £6.43 | £4.92 | £3.86 | £4.16 | £2.81 | £1.58 |
| Pack of Marlboro Lights cigarettes | £2.74 | £4.87 | £6.76 | £4.72 | £5.19 | £1.41 | £4.75 |
| 3 course evening meal (including bottle of house wine) in a local restaurant | £50.69 | £53.60 | £58.38 | £64.32 | £62.33 | £84.41 | £132.37 |
| TOTAL COSTS | £74.99 | £77.28 | £82.19 | £85.63 | £88.28 | £101.40 | £153.73 |
Source: Post Office®. Data relates to exchange rates on 5 January 2009.
2 Post Office® Holiday Costs Barometer research for European destinations revealed that Spain was the lowest priced eurozone country with eight tourist items costing £68.38 – more than in non-euro Turkey, Bulgaria and Croatia, while Italy was the most expensive at £84.58.
3 Post Office® Fastest Growing Currencies 2008 reveals that currencies for five long haul destinations (Malaysia, China, Japan, UAE and Egypt) feature in the top ten. Egypt is at number 10 with an annual sales growth of 17.3 per cent.
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 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.