You don’t need to be a finance whizz to understand our currency has taken a tumble. Last month, the pound reached an all-time low compared to the US dollar, and has yo-yoed against the euro for the last six months.
All of this means our spending power has been drastically weakened in certain destinations; eating out, shopping and visiting attractions might be much pricier than before.
But while the likes of the USA and Costa Rica might now be more expensive, there are still destinations where the pound is actually stronger than earlier this year.
In fact, in some cases the tables have been turned: while historically ‘cheap’ countries such as Mexico are pricier, wealthy Scandi nations like Norway and Sweden have almost slipped into line with London prices, according to a study by money exchange service FairFX (fairfx.com), comparing the strength of sterling between now and April 2022.
Jack Mitchell, head of travel money at FairFX, says: “As holidaymakers plan their trips, they should keep a close eye on the currency rates and consider whether to lock in. With the pound weak against the dollar and the euro, it could be worth considering travelling to alternative destinations.”
Here are three great spots to visit this winter, that might get you more bang for your buck…
Argentina
Why? Plagued by financial woes, Argentina’s economy has been on a rollercoaster journey for the last few decades. Right now it’s at a low point, with inflation projected by some to hit 100% this year. While it would be wrong to capitalise on someone else’s misfortune, the flow of foreign income into the economy could be seen as a positive thing for the country.
Exchange rate: You’ll now get an additional £116 for every £1000 exchanged (up 13%).
Where? Crumbling at the corners but eternally beautiful, capital city Buenos Aires is one of the prettiest urban centres in South America. Watch couples dance tango in the streets of San Telmo, dine in cool restaurants around hip district Palermo, and visit the football pitch in La Boca where Diego Maradona found fame. Downtown, architectural masterpieces include the 19th century Teatro Colón, where it’s possible to join a guided tour.
Money-saving tip: Banks charge an extortionate amount to withdraw money from the machine. Carry dollars to exchange on the ground – although be warned: while the official rate is 150.7 pesos per dollar, the informal black market trades at 280 pesos on the street. A safer option is to use a fund transfer service such as Western Union, where the rate is around 270 pesos.
Norway
Why? Historically considered one of the world’s most expensive countries, this Scandinavian beauty seems relatively affordable right now. Although days are shorter in the winter period, this is the best time to see the northern lights.
Exchange rate: You’ll now get an additional £34 for every £1000 exchanged (up 4%).
Where? Sat right below the aurora oval (a huge ring above the Earth’s geomagnetic North Pole where northern lights shine the brightest), Tromso is an excellent base. Flights are regular, with direct routes operating between Gatwick and Norway, and there are plenty of hotel and Airbnb options. For optimum aurora viewing, you’ll need to leave town to escape light pollution, so consider booking a hire car. Day trips for snowmobile and husky rides are also within easy access.
Money-saving tip: Book self-catering accommodation or an apart-hotel with kitchen facilities. You might want to pack your own booze (Norway still has high taxes) or stock up at Duty Free on the way in.
New Zealand
Why? Closing borders may have been a defence against Covid, but no country can escape the global economic crunch. As the Southern Hemisphere swings into summer, this is the best time to hike trails, sip wine in vineyards and cruise along epic waterways.
Exchange rate: You’ll now get an additional £34 for every £1000 exchanged (up 4%).
Where? There’s fierce competition for the most scenic place in New Zealand, but Fiordland National Park could be the winner. Admire reflections in the still water of fjords carved by glaciers, where forests now cover mountain slopes. Visit Milford, Dusky and Doubtful Sounds.
Money-saving tip: The big cost of a holiday to New Zealand tends to be the flight, so book far in advance to secure the cheapest deal. Another way to cut costs is by touring in a campervan. There are excellent sites and facilities across the country – and some companies even offer electric vehicles.
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