UK NEWS

HOLIDAYS HIT AS THE POUND FALLS SHARPLY

The high cost of the dollar and euro will hit millions of Britons

Wednesday March 10,2010

By Anil Dawar

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HOLIDAYMAKERS were dealt a crippling blow yesterday after the pound tumbled sharply amid warnings it could get worse over the next few months.

Families planning Easter breaks in Europe or the US already face getting 10 per cent less for their cash as fears grow over the size of Britain’s national debt.

In a dramatic day of trading, the currency fell almost one per cent to drop below the symbolic $1.50 level to $1.499 for only the second time since last May.

The slump was prompted after a shock collapse in exports and uncertainty about the outcome of a General Election sparked panic in the City. It follows another dramatic drop last week when the pound suffered its biggest fall for almost a year.

The news will hit the pockets of the two million Britons expected to fly abroad over the Easter weekend. Another 132,000 will be boarding ferries bound for Europe.

A trip that would have cost £1,000 two years ago will now cost £267 more in the US and £183 more in Europe. Experts in the UK travel industry suggested families who had not yet booked their Easter breaks should consider destinations outside the euro zone.

Mark O’Sullivan, of Currencies Direct, said: “Sterling is going to remain under pressure for the next few months and it is going to be hard for holidaymakers.

“If people are set on going abroad for their holidays we advise they go to places where the cost of living is cheap once they get there. Countries outside the EU like Turkey or Croatia.

“The exchange rates are not going to be good but at least it won’t cost them an arm and a leg once they get there.” Mike Greenacre, managing director of tour operator The Co-operative Travel, said: “The result of the weak pound is likely to be a further increase in holidays to areas such as Turkey, Egypt and North Africa.”

The fall in the value of the pound means that a bottle of beer in Paris, which cost £1.55 in March 2008, will now set British visitors back £1.90, while a night in a three-star hotel in New York has leapt from £72.50 to £99.

Travel expert Simon Calder said: “Of course it’s going to be an awful shock for lots of people who had thought they had planned all their holiday spending.

“A coffee and a croissant in an ordinary French cafe will now cost you £8. It’s awful.”

He added: “We still live in a hub of aviation and can go wherever we want but for now it might be better to stay here in Britain.”

Yesterday’s sharp drop in Sterling was prompted by the news that Britain’s trade gap had widened despite expert predicting it would narrow as overseas buyers took advantage of the weak currency.

The 6.9 per cent slump in exports in January was the sharpest drop in three years.

The disappointing figures saw the pound dip 0.75 per cent against the dollar and 0.4 per cent against the euro making £1 worth 1.10 euros.

The UK’s currency has fallen by some 24 per cent against a basket of world currencies since 2007, before the global economic crisis set in.

Sterling has now lost seven per cent against the dollar this year alone.

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I HEAR THOMPSONS HAVE

11.03.10, 8:28pm

Downgraded their Tenerife Experience, could it be they are familiar with DA and his ramblings in these
columns, especially as he divulges he has a dozen friends there.

• Posted by: dunnit • Report Comment

IF IT IS MOUNTAINS YOU LIKE...

11.03.10, 2:41pm

then Tenerife has Spain’s highest mountain, Teide. In winter it is covered in snow and can be seen from many parts of the island.

See it live at the Teide webcam;

http://www.telescope.org/webcam-tn-teidecam-i.php

There are lots of things on Tenerife that tourists, and even some ex-pats and Canary Islanders never see or know about. For example there are pyramids on Tenerife.

I’ve met people on the plane on their way home form Tenerife who absolutely hated it, but I usually found they stayed in a hotel in Las America near a row of all night bars (with, unfortunately, the inevitable British yobs) and never ventured outside the area. Others like me love the place. My sister has lived there for 15 years and I hope to spend a lot more time there soon. The advantage over mainland is the weather. They have fabulous fiestas and street parties. I’ve had many a Christmas lunch with a couple of dozen friends sitting on a sunny terrace with an after dinner swim and sunbathe. Even beats the best UK summer with that lovely Mr Brown as Prime Minister.

• Posted by: TheDA • Report Comment

LOVE THE ISLANDS....THE BALEARICS

11.03.10, 7:11am

But Tenerife has not much to offer..maybe the all round warm climate....but living there is a different matter to visiting.
I would find it boring whereas the mainland offers chances to travel around France and the Pyrenees or any European country without the need to fly.

• Posted by: marigold • Report Comment

ACTUALLY

10.03.10, 11:17pm

Tenerife has all the diversity which you state marigold beaches, culture and mountains albeit they originated from volcanic eruptions millions of years ago.

Have not been there but have been to Gran Canaria a couple of times and it was great, the weather was good and the people welcoming. Would much rather go the the islands than to the Spanish mainland.

• Posted by: Hip_Hoppy • Report Comment