When choosing the destination for your summer holiday, you might factor in considerations such as whether you want access to a beach, or you’d prefer a city break.
One factor that you might not have considered, however, is how far your pound sterling will go when converting your currency.
Events such as Brexit and the Covid-19 pandemic have caused the value of the British pound to fluctuate over the last few years. Now, research has been carried out to compare how much £1,000 would buy in certain foreign currencies, both historically and this year.
The research looks at the value of pound sterling to various foreign currencies in the month of April in four specific years:
- 2016, just before the Brexit vote
- 2020, right after lockdowns were imposed around the world to slow the spread of Covid-19
- 2022, for a frame of comparison to last year
- 2023, representing the current value of pound sterling.
So, find out how far your pound sterling may go when travelling abroad for your summer holiday, and discover three countries you could consider where your money might go even further this year.
Travel in eurozone countries could be more expensive
Continental Europe has long been a favourite for Brits spending time abroad. However, the data shows that eurozone countries are all likely to be more expensive now, as the value of the pound was down to that of the euro in April 2023 compared to the other three time periods.
In April 2016, you could have exchanged £1,000 for €1,253. But in 2023, this had fallen to just €1,136.
This could affect you when travelling to various countries that use the euro, all the way from Austria and Germany to Greece and Cyprus.
Rates can certainly vary across countries, especially in places such as the Czech Republic where businesses may accept both euros and Czech korunas.
However, you may need a bit more than you might have been expecting for a European holiday this year.
Pound sterling is worth significantly less down under than it was 3 years ago
If you don’t mind the 24 hours or so that you have to spend in the air to get there, Australia is also a favourite of British holidaymakers. Unfortunately, this is another country where you’ll likely receive less than previously for your pounds.
You’d have received $1,860 AUD in April this year, slightly less than the $1,864 AUD you could have found in 2016, and significantly lower than April 2020’s figure of $1,992 AUD.
So, you may need a slightly larger fund if you want to travel down under this summer.
You might need a larger fund than you think to travel to the US
Looking across the pond to the US, the pound has notably shifted relative to the US dollar over the last few years.
In April 2023, you’d have been able to get $1,241 for your £1,000, the same as you would have been able to exchange for in April 2020.
However, this is short of the $1,301 you might have been able to get in 2022, and a far cry from the $1,427 in 2016.
That means shopping in New York or touring film studios in Los Angeles could be dearer than before.
Luxury holidays to Dubai are likely to cost you even more
A luxury holiday to Dubai would already have been an expensive excursion, and changes in the value of the pound to the Emirati dirham (AED) mean that this may be even more so than before.
While the 4,556 AED you’d have got for your pounds in 2023 is comparable to 2020 and just shy of the 4,780 AED in 2022, this is well short of the 5,242 AED you could have received in 2016.
Dubai is already known as one of the most expensive cities in the world. So, make sure you set plenty aside if that’s your target destination, or you may find that your holiday funds don’t last too long at all.
Taking the road less travelled could allow you to generate the greatest return
Interestingly, the data suggests that you may be able to get more for your money if you’re willing to take a leaf out of Robert Frost’s book and take the road less travelled.
Not only could it be more cost-effective, but some of the countries offering the most competitive exchange rates could also make for a hugely exciting holiday destination.
Three places you could consider travelling this year are Egypt, South Africa, and India.
With the pound sterling’s value rising dramatically against that of the Egyptian pound (EGP), Egypt could be a cost-effective and culturally fascinating summer holiday.
You could have exchanged £1,000 for 12,671 EGP in 2016, and this has steadily risen over time to reach 38,520 EGP in April this year – that’s an increase of more than three times.
Egypt’s capital city, Cairo, is often seen as the best place to go, and the north African country boasts a fine mix of culture and relaxation.
There are unmissable landmarks such as the Great Pyramid of Giza, Temple of Karnak, and Valley of the Kings.
Meanwhile, you can also explore vibrant cities, enjoy miles of coastline and beaches, and even learn to dive in the Red Sea.
You could buy 22,869 South African rand (ZAR) for £1,000 in April 2023, a figure that sits comfortably above last year’s figure of 18,991 ZAR. As a result, South Africa could be a great holiday option for making the most of your money.
Cape Town could make for an exciting city break, nestled between scenic mountains on the south-west coast of the island. You can also easily travel to Stellenbosch, famous for having a high concentration of top wineries located nearby.
South Africa is also well known for its impressive wildlife. A safari is a must so you can see lions, elephants, giraffes and more in their natural habitat.
With the number of Indian rupees (INR) your £1,000 can buy rising from 94,775 in 2016 to 101,874 in 2023, India could be another option for your summer trip.
From iconic wonders such as the Taj Mahal and the Golden Temple in Amritsar, to bustling cities such as Bangalore, Delhi, and Chennai, there’s plenty to keep you occupied throughout this enormous country.
You’ll find delicious, authentic Indian cuisine wherever you go, as well as breathtaking views and enchanting culture.
Get in touch
Whether you’re organising your wealth to jet abroad, or you want to prepare for your future, we can help at Rosebridge.
Email email@example.com or call 01204 300010 to speak to us today.
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.