Affordable alternatives available to UK holidaymakers

The recent decline in sterling, particularly against the euro and the US dollar, is expected to alter UK holiday makers travel habits, according to the Halifax. An estimated 47 million UK residents visited a country in the euro-zone, an average of 2.96 million visitors per member country.

European destinations still affordable

Although the value of the pound declined by 14% against the euro between June and December 2008, making trips to countries in the euro-zone more costly, some European countries outside the euro-zone have become more affordable due to a rise in the value of the pound against a number of European currencies.

Scandinavia more attractive to UK tourists

UK holidaymakers seeking alternative destinations in Europe may choose to visit Scandinavia over the coming months. Those visiting Iceland in June 2008 would have found that one British pound would buy 156 Icelandic krona. Visitors in December, by contrast, would have received around 176 Icelandic krona per pound, an increase of 13%.

Poland an increasingly popular holiday hotspot

Tourists may decide to take advantage of the favourable exchange rate between the pound and the Polish zloty and choose to take a winter break in Poland. UK holidaymakers visiting Poland in December would have received approximately 4.42 Polish zloty per pound, an increase of 4.0% from June 2008.

Long haul trips ...

For those hoping to head further a field on their holiday in 2009, or who have travel plans to go 'down under' the news is positive. Between June and December 2008 the value of the pound rose by 7% against the Australian dollar and by 1% against the New Zealand dollar. Additionally, those looking to visit the Rio carnival in Brazil during February are likely to enjoy a favourable exchange rate with the pound purchasing 15% more Brazilian real in December 2008 than six months earlier.

Anyone planning on visiting the Seychelles on honeymoon may be tempted to do so by the increase in the value of the pound of 61% against the Seychelles rupee between June and December 2008. However, all the decline in the Seychelles currency against sterling is due to the rapid rise in inflation following the floatation of the currency in November 2008.

Martin Ellis, chief economist at Halifax, commented: "The pound has fallen significantly against both the euro and the US dollar in recent months, substantially increasing the costs for UK citizens of holidays and city breaks in many of the most popular tourist destinations.

"However, it is not all doom and gloom. The pound has also risen in value against a number of currencies in the past six months, making it more affordable for Britons to holiday in some places in Europe as well as a number of destinations further a field."