Weak sterling could inhibit overseas holidays
20 February 2009 08:51
The number of families buying annual travel insurance and flying abroad could drop off this year, as less people are likely to invest in overseas holiday homes, it has been suggested.
According to Nubricks.com, the weak performance of the sterling will make it much harder for Brits to buy abroad in 2009, particularly in countries such as Morocco and Dubai, as well as those in the eurozone.
Adam Samuel, director of the overseas property website, suggested that UK investors in foreign property "will be very few and far between" until the pound is able to rally.
"UK investors at the moment are struggling to find anything that stacks up that isn't in sterling," he added, noting that Britain's new "investor population" will be small in the coming months.
With the value of the pound falling against the euro, the relative cost of emergency medical treatment abroad and repatriation will have become even more expensive, making travel insurance that much more necessary.
Recently, Foreign Currency Direct reported that overseas property is 47 per cent less likely to appeal to Brits this year than last.