British travellers to the United States can expect their spending money to stretch further following sterling’s rise this week to a 16-month high against the dollar.
This gives them nearly 10 per cent more for their money compared with the same time last year, and almost 25 per cent more compared with two years ago, when the pound fell to a five-year low.
The news will provide an extra incentive to visit the US this year, and may help stop numbers of British visitors falling further. About 15.8 million Britons travelled to the US last year, down 15 per cent from 18.6 million in 2007.
Many prospective travellers have been discouraged by the rising cost of air travel. As Telegraph Travel reported last week, the average price for a return flight to the US has increased by £89 since November 2009, thanks to rising oil prices and Air Passenger Duty.
“The rise in the value of the pound against the US dollar is good news for the thousands of UK holidaymakers planning trips to Florida, New York, Las Vegas and other US hotspots,” said Sarah Munro, head of travel money at the Post Office. “With luck, the position might get even better in the coming weeks.”
Since last May, sterling has risen by more than 10 per cent against the Egyptian pound, the Kenyan shilling and the Argentinian peso, and by more than eight per cent against the Barbados dollar, the Hong Kong dollar and the UAE dirham.
This week, however, it fell to a one-year low against the euro (£1 was worth €1.04), increasing the holiday costs of millions of British travellers who were thinking of spending summer in traditional destinations such as Spain, Portugal and Greece. The pound has also fallen sharply against the Australian dollar and the Japanese yen.
