Holiday Euro Summer 2019:
Holiday Euro 2019 worth on average 20 percent more than at home
- Turkey, Hungary and Croatia are at the top of the list of favourite destinations
- Due to strong devaluation, you'll get twice as much for your money in Turkey this year than in Austria
- The Holiday Euro is worth as much in the United Kingdom and the United States as at home
- Overseas destinations tend to be more expensive this year, with a few exceptions
- Switzerland continues to be one of the most expensive holiday destinations, while Sweden is no longer as expensive
The value of the Holiday Euro for Austrians in the summer of 2019 is on average 20 percent higher abroad than in Austria. "Among the major holiday destinations for Austrians, you can still get the most for your Holiday Euro in Turkey, Hungary and Croatia. Among popular holiday destinations, an Austrian tourist can expect more for his Holiday Euro in Portugal, Greece, Slovenia and Spain than at home," says Stefan Bruckbauer, Chief Economist at UniCredit Bank Austria, with regard to the current Holiday Euro exchange rates, adding: "In Turkey, where the Holiday Euro was worth the most in the past, you will receive more than twice as much as in Austria this year due to a sharp devaluation."
Overall, the situation with the Holiday Euro is much the same as it was in the summer of 2018, because in many primary holiday destinations for Austrians price increases were similar to Austria, and exchange rates have remained relatively stable, plus many popular holiday destinations are part of the eurozone anyway. "In cities that are popular vacation destinations, vacationers from Austria are likely to see price levels similar to those back home this year, for example in Italy, the United Kingdom, Germany, France and the USA," says Bruckbauer.
In many countries in eastern and south-eastern Europe, the Holiday Euro continues to be worth much more than in Austria, especially in Bulgaria, Romania and Poland. "European destinations tend to have remained almost the same year-on-year in 2019, while overseas destinations have become somewhat more expensive on average," according to Bruckbauer. Alongside Turkey, where the Holiday Euro is worth about 11 percent more than in 2018, the Holiday Euro likewise benefited from a devaluation in Sweden. "It is not expected that the Holiday Euro will benefit from inflation rates noticeably lower than in Austria in the summer of 2019, because prices in many countries have increased in the last twelve months, much like in Austria," Stefan Bruckbauer explains in summing up the situation for the summer of 2019.
Overseas in 2019, on average just under 10 percent more expensive
Along with the different price developments overseas, exchange rate trends also play a role in comparing the value of the Holiday Euro. "In comparing 2019 to 2018, the slightly weaker euro and higher inflation rates in some cases have reduced the value of the Holiday Euro overseas for a holiday maker from Austria in 2019 by almost ten percent, especially in popular destinations in Africa. Only Australia became a little cheaper, though it remains an expensive destination," Bruckbauer said. In Asia, too, the value of the Holiday Euro fell in 2019, but on average by only three percent.
The Holiday Euro continues to be of little value in Switzerland, even less than in 2018
Given the appreciation of the Swiss franc in 2019, despite low inflation, the value of the Holiday Euro in Switzerland fell in 2019 compared to 2018, making Switzerland clearly still the most expensive holiday destination for the average Austrian tourist among popular holiday destinations. “As a result of the revaluation last year, the Holiday Euro in Switzerland fell once again to an even lower value, around ¾ of its value in Austria, which corresponds to its long-term average," says Bruckbauer, adding, "Not since value comparisons were first introduced has the Holiday Euro ever been worth more in Switzerland than in Austria.” The devaluation of the Swedish Krona in the last twelve months puts the value of the Holiday Euro in Sweden not quite at the same level as in Austria, but at 95 it is near the 100 mark for the first time in nine years.
Lastly, the economists at UniCredit Bank Austria point out that these are average values, individual regions (such as London as central region) may deviate from them. The price level refers to the average price of goods and services in the individual countries, though individual products (specifically for tourists) may differ significantly. Therefore, no value was indicated even for the long-distance destinations, but only the change. In addition, the fact that the price level is so much cheaper in some holiday destinations than in Austria is mainly due to the high income level in Austria. If Austria's price level were lower, income levels would be lower and holidays would be hard to afford.
Enquiries: UniCredit Bank Austria Economics and Market Analysis Austria
Stefan Bruckbauer, Tel. +43 (0)5 05 05-41951
UniCredit Bank Austria Corporate Communications
Matthias Raftl, Tel. +43 (0)5 05 05-52809