Quarter of a million gap year travellers will see their money go much further in Brazil, Nepal and South Africa this year
Surfin' SA: South Africa is not traditionally a top gap year destination, but it is much cheaper for Brits this year
Gap year travellers will buy a huge amount more for their pounds in Brazil, India, Nepal and South Africa than they would have done a year ago, as the exchange rates with the currencies there have shot up massively.
Sterling has soared 26 per cent against the Brazilian real - which equates to an extra £130 for £500 changed.
Research from travel money specialist Moneycorp and travel advice website gapyear.com showed that against the rupee in India and Nepal - both popular 'gapper' destinations - the pound rose 22 per cent and 21 per cent respectively.
Against the rand in South Africa it was 18 per cent up in the past 12 months, which may suggest the country should move up the 'most popular destinations' rankings (see table) where it currently languishes in 20th place.
Notably, none of the ten most popular traveller spots saw hugely positive changes in the exchange rate, while the pound will buy 4.4 per cent fewer U.S. dollars and 3.8 per cent fewer New Zealand dollars.
And Machu Pichu is one of the big traditional draws for gappers to South America, but the pound fell just over 7 per cent against the Peruvia sol.
Of course, this study is relative - Australia, the top destination for those on a year out, remains an expensive place despite the pound edging ever-so-slightly up against its dollar (by 0.03 per cent). But it still gives a very useful indication of which places are becoming cheaper or more expensive.
Taking a gap year remains extremely popular amongst Britons. Gapyear.com estimates that 250,000 people will head off in the coming months, and typically the average gapper travels for around six to nine months, during which time they will visit as many as ten countries on average.
Top gap: It is worth seeing how currencies have changed relatively to a year ago - even small changes will equate to sizeable differences when changing large amounts of travel money
Interestingly, the gap year is no longer confined to students taking time off between studying and starting university, or university and starting their career. In recent years, a growing number of people have taken a career break, leaving the stresses of work behind to head off and see the world.
Macca Sherifi, spokesperson for
gapyear.com, said: 'We’ve had record numbers of people signing up to the
site this year and the message boards have been abuzz with activity.
However, budgets still remain an issue for most gap year travellers, so
finding ways to make their travel money go further is a hot topic at the
moment.
Bargain Brazil: 'Christ the Redeemer' statue atop Corcovado mountain, in front of one of Rio de Janeiro's best-known tourist attractions, Sugar Loaf mountain and (below) traditional samba dancers
'There is an element of fun and
adventure about being spontaneous when it comes to choosing
destinations, but the last thing you want is to run out of money, so a
little forward planning is always a good thing.'
Olann Kerrison, currency expert at
travel money specialist Moneycorp, added: 'There has been a great deal
of fluctuation in the currency markets over the past 12 months. The
strength of the pound is great news for gappers heading off on a
once-in-a-lifetime adventure. However, by the time they reach some of
these countries, the economic landscape might have changed and their
pound might not stretch quite as far.'
Carrying large amounts of cash is not
advisable, and prepaid currency cards have become
increasingly popular - taking over from travellers cheques - especially for people travelling to multiple
countries. These give you the chance to upload various currencies at a guaranteed rate.
Trippers: A house hotel boat on the backwaters of Kerala, Iindia, and a beach in Goa - popular with backpackers
Olann Kerrison, concludes: 'Using a
multi-currency prepaid card, gappers can load up currency on the card
before they travel, securing a good rate now, and protecting themselves
against currency fluctuations in the future.'
Gappers might also want to consider
back-packing around Europe - they can expect 10 per cent more spending
power in eurozone countries compared to this time last year.
And some eastern European countries
have become vastly cheaper for the British visitor. Against the
Hungarian forint the pound has gained 21.4 per cent, equating to an
additional £107 on £500-worth of holiday money.
Park life: The pound is up 18 per cent against the rand in South Africa, making a safari more affordable
Likewise, sterling is 18.9 per cent up
gainst the Polish zloty, 16.9 per cent against the Romanian New leu,
15.8 per cent versus the Czech koruna and 11.8 per cent against the
Croatian kuna, Moneycorp said.
This is largely because eastern European currencies are risky, according to Richard Driver at CaxtonFX.
'The last year has been full of
financial turmoil,' he says, 'which pretty much explains why sterling
has found some easy gains against the European currencies.
'They are particularly exposed to European debt and falls in equities.'
When put together with the low local cost of living in many areas of eastern Europe, the pound's strength could make for an extraordinarily cheap trip.
WHAT NEXT FOR THE POUND?
Purchases of euros have soared this year as the pound has hit levels not seen since the financial crisis of autumn 2008 saw sterling fall off a cliff. It is currently at €1.27 - but that is still well below the rates of €1.40-50 in late 2007.
Many currency analysts see the pound strengthening to the €1.30 mark in the next few months on euro weakness alone.
But a fresh economic crisis in the UK's major trading partner is not good news for the British economy.
So far the eurozone crisis has seen the pound enjoy a safe-haven status as investors move money out of equities and the euro. However, there is evidence that it is weakening the pound vis-a-vis the dollar, and as a Greek exit becomes more likely, so investors are starting to look how a euro break-up could derail the UK economy. The dollar could well regain its global safe-haven mantle this summer.
Sterling has fallen from $1.62 a year ago to $1.57 currently. It is also well down on the Japanese yen over the last year, by more than 5 per cent.
- 200-year old Bonhams auction house could be sold to China's...
- Would you move your mortgage for £1,000? Lloyds offers new...
- Landlords warned they may be required to check immigration...
- Serco set to flounder into red and seek funding from...
- 'We bought a bigger house with the money from our pensions':...
- Culture of long hours puts staff at risk of burnout as a...
- Rise of the contrarians: Neil Woodford and Terry Smith's...
- TONY HETHERINGTON: My kids and I had to depend on food banks...
- My hotel was overbooked so I was moved to another of a...
- 'I get 8% interest from Chilango mini-bond - plus free...
- Bosses at copycat site Taxreturngateway sang 'We're In The...
- 'We're ahead of America in fast food': Pret A Manger founder...