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3 April 2009
New city costs barometer reveals Budapest as best value city break destination
First Rate Exchange Services is advising FX retailers to expect strong demand for eastern European currencies this spring as new research reveals that Budapest, Warsaw and Prague¹ are set to offer best value to UK travellers looking for a short haul city break destination.
As the euro continues to hold strong against sterling and holidaymakers fear their pounds will not go far in traditional destinations such as Paris and Amsterdam, a new report produced by the Post Office® has revealed price comparisons in 10 ‘alternative’ cities to find out just how far people’s pounds will stretch in destinations beyond the eurozone.
The report revealed that despite sterling’s decline against many currencies, UK tourists will actually get more for their money than a year ago in three of the cities surveyed – Warsaw, Budapest and Istanbul – as sterling has strengthened against their currencies.² In the case of the Polish zloty, the UK pound is over 10 per cent stronger, making city breaks to Warsaw and to Krakow much cheaper than in 2008.
Commenting on the results of the new report Gordon Gourlay, Managing Director, First Rate Exchange Services said: “The research revealed that 2009 will be the year when exchange rates and not just tourist attractions, are a key factor when UK holidaymakers are choosing where to take a short haul city break.
“However, just as consumers are set to become more cost conscious in the selection of their holiday destination, they are also more likely to shop around for the best value currency provider. As a result FX retailers should look to not only offer great value rates, but also extra convenience through providing an “on demand” currency offer or even a home delivery service.”
The Post OfficeCity Costs Barometer examined the price of typical tourist items like drinks and meals out, together with three-star city centre hotel accommodation, airport transfers and sightseeing costs. It found that all five eastern European cities surveyed – including the Baltic duo of Tallinn and Riga - are much less expensive than those in Scandinavia.
Individually, Warsaw rates as the cheapest for weekend accommodation – so independent travellers can expect a great deal if they travel while the Polish zloty remains weak. Budapest and Prague are best value for eating out, while return transfers between airport and city centre, a cost that tourists cannot avoid, is cheapest in Riga.
The survey also included the costs of visits to art galleries and top heritage attractions, finding that culture comes cheap in Warsaw, Tallinn and Budapest – but costs nothing at all in Oslo, where the key visitor attractions are free.³
First Rate is the UK’s leading provider of foreign exchange services and the wholesaler behind the Post Office’s market leading service. In addition to providing the Post Office with its in-branch and online foreign exchange services First Rate delivers a wide range of innovative white labelled foreign exchange services to large and small businesses across the UK.
First Rate’s Travel Money Online solution provides high street and online retailers with a fully integrated online platform, allowing them to offer their customers access to over 70 currencies, notes and travellers cheques, currency advice and secure online payment. First Rate’s Travel Money Online service also allows customers to select their required delivery date, with orders received before 3pm available for delivery the next business day to addresses across the UK.
Note to Editors:
The full results of the Post Office City Costs Barometer can be viewed online at: postoffice.co.uk/citybreaksreport.
1Post Office City Costs Barometer 2009 of cities outside the eurozone. Prices supplied by tourist offices of participating countries. Hotel prices were researched independently and are based on two adults sharing a double/twin room in a three-star city centre hotel over a weekend. Where possible, these were verified by tourist offices.
POST OFFICE CITY COSTS BAROMETER 2009: NON-EUROZONE CITIES
| Items | Budapest Hungary |
Warsaw Poland |
Prague |
Tallin Estonia |
Riga Latvia |
| Cup of coffee Bar/café |
£1.00 | £2.20 | £1.68 | £1.29 | £2.66 |
| Bottle of lager Bar/café |
£1.67 | £2.20 | £2.80 | £2.57 | £2.66 |
| Bottle/Can of Coca-Cola Bar/café | £0.83 | £1.10 | £2.24 | £1.61 | £0.87 |
| Bottle of still mineral water Supermarket |
£0.33 | £0.51 | £1.01 | £0.64 | £0.44 |
| Postcard and stamp to UK | £1.00 | £1.10 | £0.84 | £1.09 | £1.26 |
| Pack (20) Marlboro Lights cigarettes | £1.90 | £2.20 | £2.80 | £2.57 | £2.59 |
| 3 course evening meal for 2 in a local restaurant (inc bottle of house wine) | £20.03 | £65.98 | £28.93 | £44.98 | £69.54 |
| Return bus or train transfers from airport to city centre for 2 adults | £4.01 | £3.69 | £3.88 | £5.14 | £2.96 |
| Top tourist heritage attraction | £3.67 | £1.98 | £11.20 | £4.18 | £2.96 |
| Leading art gallery | £4.67 | £2.91 | £8.96 | £4.18 | £4.44 |
| 1 night 3* hotel accommodation (weekend) for 2 adults | £90.12 | £53.22 | £89.58 | £89.44 | £82.14 |
| TOTAL COSTS | £129.23 | £137.09 | £153.92 | £157.69 | £172.52 |
| Items | Instanbul Turkey |
Geneva Switzer-land |
Stockholm |
Oslo Norway |
Copen-hagen Denmark |
| Cup of coffee Bar/café |
£2.65 | £3.02 | £2.06 | £2.83 | £3.26 |
| Bottle of lager Bar/café |
£3.53 | £3.11 | £4.02 | £5.67 | £3.91 |
| Bottle/Can of Coca-Cola Bar/café | £1.76 | £2.54 | £2.24 | £3.74 | £3.26 |
| Bottle of still mineral water Supermarket |
£0.44 | £0.32 | £1.07 | £1.08 | £1.04 |
| Postcard and stamp to UK | £2.21 | £1.46 | £1.34 | £1.93 | £2.09 |
| Pack (20) Marlboro Lights cigarettes | £2.21 | £4.38 | £4.38 | £8.16 | £4.17 |
| 3 course evening meal for 2 in a local restaurant (inc bottle of house wine) | £52.95 | £66.68 | £75.99 | £79.35 | £78.19 |
| Return bus or train transfers from airport to city centre for 2 adults | £17.65 | £7.62 | £39.34 | £42.62 | £15.64 |
| Top tourist heritage attraction | £8.82 | £2.54 | £8.49 | £0.00 | £11.08 |
| Leading art gallery | £3.09 | £5.08 | £8.94 | £0.00 | £0.00 |
| 1 night 3* hotel accommodation (weekend) for 2 adults | £119.13 | £123.84 | £94.94 | £106.55 | £129.66 |
| TOTAL COSTS | £214.44 | £220.59 | £242.81 | £251.93 | £252.30 |
2Post Office year-on-year currency comparison:
| Country | % +/- 2009 vs 2008 | Mar 25 2009 | Mar 25 2008 |
| Poland zloty | 10.25 | 4.55 | 4.12 |
| Turkey lira | 0.55 | 2.27 | 2.25 |
| Hungary forint | 0.49 | 299.61 | 298.15 |
| Sweden kroner | -2.76 | 11.19 | 11.50 |
| Czech koruna | -7.26 | 26.79 | 28.89 |
| Norway kroner | -10.24 | 8.82 | 9.83 |
| Estonia kroon | -13.82 | 15.56 | 18.06 |
| Latvia lats | -15.64 | 0.68 | 0.80 |
| Denmark kroner | -15.66 | 7.67 | 9.10 |
| Euro | -16.37 | 1.02 | 1.22 |
| Switzerland franc | -17.19 | 1.57 | 1.90 |
3Heritage attractions and leading art galleries suggested by tourist offices of participating countries:
| Budapest Hungary |
Warsaw Poland |
Prague |
Tallin Estonia |
Riga Latvia |
|
| Top tourist heritage attraction | Castle district: Matthias Church & Fisherman's Bastion | Royal Castle | Prague Castle | Kadriog Palace | Ethnographic Open Air Museum |
| Leading art gallery | Museum of Fine Arts | National Museum | National Gallery | KUMU Art Museum | Nation Museum of Art |
Instanbul |
Geneva |
Stockholm |
Oslo Norway |
Copen-hagen Denmark |
|
| Top tourist heritage attraction | Hagia Sophia (Ayasofya) | Cathedrale et Espace St Pierre |
Vasa Museum | Vigeland Sculpture Park | Tivoli Gardens |
| Leading art gallery | Istanbul Modern Museum | Museum of Modern & Contemp- orary Art |
National Museum | National Gallery | National Gallery |
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.