Daylight Dawns for Credit-Crunched Iceland as it Tops Post Office 'Best Value' Chart

Poland, Hungary and Jamaica join Iceland as only foreign exchange destinations where sterling has rallied.

London (PRWeb UK/PRWEB ) June 20, 2009 -- UK adventure-seekers can enjoy daylight 24/7 if they travel to Iceland this summer because their travel money will now stretch over 40 per cent further than last year. With the collapse of the krona, the 'Land of the Midnight Sun' has taken top spot in the annual Post Office® Travel Services' Best Value Holiday Destinations travel money report.

Another unlikely holiday tip is Poland, runner-up to Iceland in the Post Office review of what the pound buys abroad¹. Sterling is worth nearly 19 per cent more than last May, making Polish cities, with their low cost of living, top travel money city break options this year.

Hungary (+4.5 per cent) joins Iceland and Poland as the only European destinations where UK tourists can expect more foreign currency for their pounds this year. But sterling has fallen in value by under three per cent in several other destinations, too.

For example, the Czech Republic (-2.95 per cent) and Turkey (-0.3 per cent) look good bets for foreign exchange bargain hunters - rated among the best buys in the Post Office's Holiday Costs Barometer survey of tourist staples.

Turkey is already racing ahead in the battle to find this year's top UK holiday choice - as a 60 per cent year-on-year increase in Post Office foreign currency sales over the past five weeks shows. Sterling's strength against the lira means that holidaymakers need only find another £1 to match the amount of Turkish foreign currency received in exchange for £229 - the average transaction made at Post Office bureaux de change last year. By contrast, tourists' travel money would have to stretch around £60 more in the USA and £26 in the eurozone².

Jamaica and Kenya rate as top contenders for tourists travelling further afield as sterling is on par with its value against these in foreign currency exchange in 2008. Dramatic discounts on holiday packages may explain why sales of Kenyan shillings were up 97 per cent last month and both destinations figure in the Post Office Fastest Growing Currencies top ten.

However, many of the top ten countries for travel money in last year's Best Value Destinations top ten are now languishing at the bottom of the table. The USA has dropped from fourth to 17th place because the dollar is worth over 20 per cent more than a year ago in foreign currency exchange. And several other 'dollar destinations' like Dubai, Hong Kong and the East Caribbean - countries whose currencies are tied to the dollar - are ranked lower too.

Despite this, foreign currency sales show that these destinations are still in demand - with the East Caribbean dollar (for St. Lucia and Antigua) coming second only to Kenya in the latest Post Office Fastest Growing Currencies table (+37 per cent for 2009).

Closer to home, although sterling buys 10 per cent fewer euros than a year ago, this is a fraction of the 30 per cent drop in value recorded since 2002 when the euro was first introduced to foreign currency exchange - the second highest slump after the Czech koruna (-42 per cent).

Looking back to 2002, the Post Office found that sterling has crashed in foreign currency value by over 20 per cent for eight of its best sellers³. But it also found sterling to have rocketed in value against the Jamaican dollar (+92 per cent) after devaluation in the mid-noughties, and also against the Icelandic krona (+46 per cent) and the Turkish lira (+15 per cent).4

And, while sterling slumped by almost 16 per cent against the Egyptian pound over the past year, in the longer term in foreign currency exchange it has strengthened by 24 per cent. The same is true of the US dollar, where the foreign exchange rate now is slightly stronger than in 2002.

Sarah Munro, Post Office head of travel services said: "Our spending power may not be what it was last year but when you look back to 2002 - when trips to the USA were as popular as they have been recently - it is clear the foreign exchange rate then (around US$1.43 to £1, did not deter UK holidaymakers from crossing the pond.

"Holidaymakers looking for best value should choose destinations where they can get more for their pounds. These include Iceland, which has been expensive to visit in the past, as well as Turkey and Kenya, rated as best buys in our travel money cost of living surveys. But they should not waste these savings by buying foreign currency at the airport, where they will pay commission and get a poor rate."

More than 1,600 Post Office bureau de change branches offer the foreign exchange currencies featured in the Best Value Destinations report on demand (except the Icelandic krona and Jamaican dollar, which can be pre-ordered).

Over 70 currencies can be pre-ordered for next day branch collection at all 11,500 Post Office outlets or online at postoffice.co.uk. Home delivery can also be requested online. Travellers to the eurozone can obtain euros over the counter at more than 8,000 Post Office branches while 4,000 branches carry Turkish lira.
Ends

CBPR
Christine Ball   
01798 874177         
cball@cballpr.co.uk                            
Post Office Press Office   
Hayley Fowell
020 7250 2417

Notes to Editors:

The full table of Best Value Destinations: What the pound buys abroad is available on request. Please contact Post Office Press Office on 020 7250 2468

¹ Post Office analysis of Best Value Destinations, comparing currency movements over two years (May 2009, 2008 and 2007) and indicating what the pound will buy in 20 destinations worldwide

2 Post Office research showing how much extra a tourist would have to spend to match the currency received for the average exchange transaction of £229 made in its bureaux de change in spring 2008.

3 Post Office research: destinations where sterling has dropped in value by around 20 per cent or more since 2002

4 Post Office research: destinations showing an increase in value compared with 2002

About Post Office Travel Services
The Post Office is the UK's largest bureau de change provider and offers over 70 different currencies with 0 per cent commission on all foreign currency and travellers' cheques. 29 currencies are available on demand at 1,600 larger Post Office branches. The Post Office pre-paid Travel Money Card offers customers a secure and convenient way to carry their holiday money.

The Post Office provides a range of great value travel services including insurance, foreign currency, passport photos and Check & Send, international money transfers, holiday phone cards, EHIC forms and Check & Send, plus huge savings on car-hire and pre-booked holiday extras.

The Post Office Credit Card charges 0 per cent commission for all purchases made overseas and also offers customers 0 per cent on balance transfers for 12 months and 0 per cent on purchases for three months.

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