Winter sun holiday destinations where the pound goes furthest
Despite the pound's drastic fall, there are still a few sunny spots where it is strong
Sunseekers hoping to escape drizzly Britain this winter can make their holiday money go further by choosing a destination where the pound is stronger.
Following economic turmoil in the UK last year, the pound is still struggling against foreign currencies in many winter sun destinations.
Yet holidaymakers aiming to make their cash go as far as possible can visit Sharm el-Sheikh, Egypt, where the pound rose 41pc against the local currency last year, according to calculations by Currensea, a debit travel card provider.
Winter sun hopefuls can book a return flight to Sharm el-Sheikh for as little as £70 in January, according to Skyscanner, a comparison site. The cheapest five-star resort listed on Expedia, an online travel shop, costs £54 per person a night, breakfast included. A sea-view beach lodge can cost as little as £34 a night.
A typical day’s entertainment in Egypt is estimated to cost £212 per person per day, according to budget calculator budgetyourtrip.com. This includes fees for admission tickets to museums and attractions, day tours, and other sightseeing expenses.
Those not observing Dry January can expect to spend very little on alcohol and eating out. Currensea calculated the average cost of a beer to be 79p under today’s exchange rates, and £18 for a meal for two. Taxis are also far cheaper in Sharm el-Sheikh, costing 16p per km.
James Lynn, of Currensea, said: “British travellers can still secure good value holidays this winter whether they are looking for a cost-effective ski season in Bulgaria, or winter sun in Turkey or Egypt.
“These economies have seen a devaluation of their currencies which means British travellers’ spending money will stretch further.”
Ranking the warmest winter destinations by the pound’s performance against local currency, travel money shop No1 Currency ranked Oludeniz, Turkey, just below Egypt.
The Turkish Lira fell 25pc against the pound during 2022. It was followed by Muscat, Oman (12pc) and Tel Aviv, Israel (1pc).
A report by the Post Office found value for money was the best in Turkey, despite alcohol being slightly more expensive than in other cheap destinations. A three-course evening meal for two was calculated to be around £16 on average, £3.50 cheaper than the next most cost-effective destination.
A cup of filter coffee in a bar would cost as little as 59p, it added.
Flight times for the four locations, including Sharm el-Sheikh, were all in the region of four to six hours.
Travellers willing to get on a 10-hour flight for an 88pc chance of 32C degree sunshine, however, could also consider Goa, India, where the sterling change against the local currency was just 0.93pc.
Yet currencies in other popular destinations have strengthened far more against the pound over the past year. Though it may have a tempting average January temperature of 22C (72F), the currency in the Dominican Republic has risen 12.5pc against the pound since 2021.
The story is much the same in America, where the dollar has risen 11pc against the pound in the past 12 months. According to the Post Office, holiday expenditures are also higher in the US than they are in most European destinations.
In Orlando, Florida, a typical evening three-course meal for two with a bottle of wine costs £43.50 on average, while a cup of coffee costs £1.87. A bottle of beer, meanwhile, costs £3.77 – more than eight times the equivalent price in Bulgaria.
Reykjavik, Iceland, was revealed to be the most expensive destination, followed by Barbados and Dubai. Nick Boden, of the Post Office, said there had been “significant price rises” in some destinations, namely Sri Lanka, where prices had soared by 26pc, and Cancun, Mexico, up 22pc.
Despite this, price falls since the pandemic have been much more marked, the report found.
The report found prices are lower now in two thirds of destinations, with the biggest drop of over 50pc in Costa Rica.
Simon Phillips, of No1 Currency, warned holidaymakers to take some local currency to winter hotspots, as “cash is still king” in many destinations outside the EU.
He said: “Ordering your foreign currency before you leave also gives you a chance to shop around for the best deal, giving you the best bang for your buck – or euro – when you arrive.
“Never leave it to the last minute to get your travel money, as airport bureaux de change typically offer the poorest exchange rates.”