Costa too much?

A staggering number of Brits have opted out of the annual holiday in Spain this year. Research released by Spain’s tourism ministry yesterday showed 148,000 fewer Britons visited the country last month compared with January 2008 – a fall of around 20.5%.

The Canary Islands, similarly popular with Britons seeking sun, registered 47,000 fewer holidaymakers from the UK - a drop of 17.5% from January 2007. The statistics will be alarming for Spain, as 11% of their economy is dependent on tourism. The industry has been shocked by the fall, which has led to the lowest number of foreigners visiting the country since records began 15 years ago.

However, James Hickman, Managing Director of Caxton FX, suggested the drop in visitors to Spain didn’t indicate Britons were sacrificing their annual holiday. In a poll of Caxton FX currency cardholders, only 5% of the respondents opted to give up their annual holiday as the recession progressed, with 40% deciding to cut back on items such as shoes and clothes instead.

Hickman comments, “Despite the UK’s worsening economic climate, this poll shows holidays remain extremely important and people are determined to take an annual holiday. The statistics from Spain have come about from a fall in the value of the pound - our spending power abroad has been drastically reduced by 24% in Europe. People are simply seeking alternative destinations outside Europe.”

However, for those who have already prepared and paid for their holiday in Europe, Hickman suggests a prepaid currency card will help save them money. “You can load it up with exactly the amount you want to spend, so you are not tempted to overspend as you would be with a debit/credit card. Cheaper exchange rate deals are also available from specialist currency brokers such as Caxton FX and there are no hidden fees or charges like there are with a debit/credit card. In fact, 93% of our cardholders think using their Caxton card abroad has saved them money.”

Visit caxtonfxcard.com for more details.