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Summer holidaymakers 'in line for currency shock'

23 June 2017 08:41

Sterling has slumped since the EU vote of June 23

Sterling has slumped since the EU vote of June 23

The fall in the value of the pound could pose a shock to British holidaymakers this summer, a currency expert has warned.

In order to receive the same amount of euro that they would have for £1,000 a year ago, Chris Saint, a senior analyst at Hargreaves Lansdown Currency Service, said households will need to pay £141 extra.

But the eurozone is not the only region where holidays could prove more costly in the coming weeks.

Mr Saint added that people heading to South Africa could be particularly badly hit, as a result of the pound's slide since the EU referendum result of June last year.

He commented: " To get the same amount of rand as £1,000 would have bought on the eve of the referendum, you would need to fork out £1,300 now."

Not all negative

But there is some good news for holidaymakers, with the Turkish lira among the currencies which now stretch further than they did in June 2016.

Ultimately, Mr Saint said UK holidaymakers could face an unwelcome surprise when they add up all the different costs of their overseas breaks.

He said: " Another downside of a weaker pound is of course rising inflation which is leading to a squeeze on consumer incomes.

"The silver lining to a weaker currency however is that it makes UK produced goods more competitive on the export market, which should give a boost to British industry."

Costs to consider

The weakened pound could impact everything from hotels and transport through to restaurant meals.

With much still uncertain about the future movements of sterling, good-quality travel insurance is one thing holidaymakers can't do without.

It can protect them against problems such as flight disruptions, medical emergencies and even lost luggage.