Weakened British pound could cost holidaymakers £1.1 billion

Jon Ostler 1 June 2017

Tourist beach and historic town in Valencia, Spain

Thinking of heading overseas to soak up the sun in Spain or eat your way through Italy? Be warned! Since Brexit, the British pound has fallen across 44 countries by 11.95% on average, meaning you’ll be paying extra when transferring your pounds over.

Since the referendum result was announced on June 24 last year, the pound has been heading downhill in most currencies. We wanted to find out exactly how this would affect Brits heading overseas this summer.

By analysing the past two years’ data from the Office for National Statistics (ONS), we found that Brits are expected to be paying over £1.1 billion extra on their summer holidays when compared to summer last year.

The top travel destinations

This summer, Brits will be forecast to take more than 15.08 million trips overseas. Of this, Spain was the clear winner by a wide margin, in terms of visits. About 4.6 million British will be expected to head to Spain’s sunny shores, with the second most popular being France, at just over two million. Most of the top 10 travel destinations are within Europe and use the Euro, where the pound has fallen 10.71% since pre-Brexit.

For a family of four travelling to Spain, for example, they will be paying £264 extra (or £66 per person) when compared to last year’s holiday budget. This is based on a forecast of the average spend of British travellers to Spain, which is £614 per person.

Check out the UK’s top 10 summer destinations and their expected extra costs here (full list of every country at the bottom)

Country (currency)Total forecast holiday visits during summer 2017% change in currency value since June 1, 2016Extra cost per personTotal extra cost per destinationAverage holiday spend per person
Spain (EUR)4,677,233-10.71%£66£307,659,119£614
France (EUR)2,015,911-10.71%£58£116,889,026£542
Italy (EUR)1,016,648-10.71%£79£80,012,811£735
Portugal (EUR)825,777-10.71%£72£59,130,582£669
USA (USD)824,691-10.45%£158£130,021,972£1,509
Greece (EUR)803,684-10.71%£79£63,675,790£740
Netherlands (EUR)613,900-10.71%£47£28,857,782£439
Republic of Ireland (EUR)480,617-10.71%£40£19,295,694£375
Germany (EUR)406,732-10.71%£52£21,139,505£485
Belgium (EUR)274,535-10.71%£30£8,147,071£277
Source: finder.com/uk, Office of National Statistics, xe.com

What can you do to lessen these extra costs?

  • Shop around for the best deals on hotels and flights. Look into holiday packages, as these can often be cheaper
  • Research your travel money options. Travellers cheques are becoming less used, but your options can include a travel money card or credit card with low foreign transaction fees
  • Compare money transfer providers. If you prefer to transfer funds directly or your receiver doesn’t accept credit cards, you could consider using a money transfer provider. Make sure to check their fees, as well as their exchange rates.

All 88 countries of UK’s summer holiday destinations and expected extra costs

CountryTotal forecast holiday visits during summer 2017% change in currency value since June 1, 2016Average extra cost per personTotal extra cost per destinationAverage holiday spend per person
Spain (EUR)4,677,233-10.71%£66£307,659,119£614
France (EUR)2,015,911-10.71%£58£116,889,026£542
Italy (EUR)1,016,648-10.71%£79£80,012,811£735
Portugal (EUR)825,777-10.71%£72£59,130,582£669
USA (USD)824,691-10.45%£158£130,021,972£1,509
Greece (EUR)803,684-10.71%£79£63,675,790£740
Netherlands (EUR)613,900-10.71%£47£28,857,782£439
Republic of Ireland (EUR)480,617-10.71%£40£19,295,694£375
Germany (EUR)406,732-10.71%£52£21,139,505£485
Belgium (EUR)274,535-10.71%£30£8,147,071£277
Turkey (TRY)264,3948.51%-£54-£14,180,031£630
Cyprus (EUR)249,544-10.71%£74£18,566,745£695
Austria (EUR)225,640-10.71%£91£20,582,073£852
United Arab Emirates (AED)204,633-10.96%£123£25,118,290£1,120
Malta (EUR)195,941-10.71%£73£14,278,813£681
Poland (PLN)190,508-15.19%£60£11,501,793£397
Mexico (MXN)170,588-11.05%£121£20,709,915£1,099
Switzerland (CHF)169,140-11.97%£92£15,631,473£772
Morocco (MAD)144,511-10.69%£83£11,947,018£773
Thailand (THB)126,040-14.89%£272£34,236,194£1,824
Czech Republic (CZK)125,678-12.89%£58£7,329,566£453
Hungary (HUF)117,710-12.70%£59£6,971,334£466
India (INR)94,530-14.80%£167£15,827,607£1,131
Bulgaria (BGN)91,632-11.11%£63£5,740,754£564
Denmark (DKK)91,270-10.95%£49£4,516,787£452
Canada (CAD)78,594-7.98%£117£9,203,386£1,468
South Africa (ZAR)57,949-25.78%£378£21,889,024£1,465
Romania (RON)56,863-10.29%£58£3,297,573£563
Jamaica (JMD)51,792-7.15%£84£4,353,568£1,175
Norway (NOK)49,257-10.03%£74£3,653,846£740
Australia (AUD)46,359-13.57%£422£19,562,975£3,110
Sweden (SEK)45,997-6.78%£35£1,628,884£522
Barbados (BBD)42,738-11.11%£145£6,185,773£1,303
Finland (EUR)42,738-10.71%£84£3,601,863£787
Sri Lanka (LKR)26,439-8.07%£103£2,715,321£1,272
Japan (JPY)24,266-9.47%£222£5,383,728£2,344
Lithuania (EUR)22,093-10.71%£43£943,345£399
Slovakia (EUR)21,007-10.71%£45£943,345£419
Hong Kong (China) (HKD)17,385-10.72%£141£2,448,205£1,313
Egypt (EGP)17,02381.39%-£747-£12,713,540£918
New Zealand (NZD)15,574-13.74%£459£7,156,169£3,343
Pakistan (PKR)15,574-10.88%£92£1,438,374£849
Russia (RUB)14,850-24.72%£240£3,563,905£971
Brazil (BRL)10,503-19.46%£341£3,585,367£1,754
Nigeria (NGN)10,14141.45%-£377-£3,818,670£908
Israel (ILS)8,330-17.30%£233£1,939,805£1,346
Luxembourg (EUR)4,346-10.71%£20£85,759£184

Methodology

  • We collected raw data from the Office of National Statistics, UK Residents Visits Abroad reports from 2016 and 2015, including the number of Brits who travelled overseas for a holiday and by country
  • We determined the number of people travelling to each country per month by first breaking down quarterly collective figures into monthly totals, and then applied the 2016 country proportions of the total to the monthly figures
  • A monthly forecast for 2017 was calculated based on each month’s growth of 2016 from 2015 figures
  • We then combined figures from June, July and August 2017 to calculate the summer forecast of total holiday visits per country
  • To find the average holiday spend per person and totals per country:
    • We took the total holiday spend per quarter from the 2015 and 2016 ONS data, and broke it down by month for each
    • We then calculated the growth rate to find the forecasted numbers for 2017
    • From the monthly data, we combined the June-August figures to find the average and total spend for summer
    • We then calculated the average of each person, by each month and by country
  • Based on the average holiday spend, we calculated the difference in cost by converting this spend into each currency on June 1, 2016 and May 29, 2017, using xe.com
  • We applied this to the total forecast of people visiting each country and total holiday visits during summer

finder Travel Tracker

View live rates and historical performance for the pound against other major currencies.

Live exchange rates

Refreshing in: 60s | Mon, 25 Sep 06:19am GMT
EUR USD CAD CNY AUD INR
1 GBP = 1.1375 Inverse: 0.8791 1.3564 Inverse: 0.7372 1.6718 Inverse: 0.5981 8.9584 Inverse: 0.1116 1.7030 Inverse: 0.5872 87.9317 Inverse: 0.0114
 

How has the pound performed against major currencies over the last month?

Historical Rate chart of GBP and EUR

1 = 0 Updated: 25 Sep 2017 06:19:28 UTC

Historical Rate chart of GBP and USD

1 = 0 Updated: 25 Sep 2017 06:19:29 UTC

Historical Rate chart of GBP and CAD

1 = 0 Updated: 25 Sep 2017 06:19:30 UTC

Historical Rate chart of GBP and CNY

1 = 0 Updated: 25 Sep 2017 06:19:31 UTC

Historical Rate chart of GBP and AUD

1 = 0 Updated: 25 Sep 2017 06:19:31 UTC

Historical Rate chart of GBP and INR

1 = 0 Updated: 25 Sep 2017 06:19:32 UTC
 

How the pound has performed against the Euro over the last 5 years?

Sep 2012 Sep 2013 Sep 2014 Sep 2015 Sep 2016
1 GBP = 1.2552 Inverse: 0.7967 1.1883 Inverse: 0.8416 1.2797 Inverse: 0.7814 1.3558 Inverse: 0.7376 1.1543 Inverse: 0.8663
 

How the pound has performed against the US Dollar over the last 5 years?

Sep 2012 Sep 2013 Sep 2014 Sep 2015 Sep 2016
1 GBP = 1.6216 Inverse: 0.6167 1.6061 Inverse: 0.6226 1.6322 Inverse: 0.6127 1.5180 Inverse: 0.6588 1.2965 Inverse: 0.7713
 

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