Holiday Euro Winter 2012/2013:
Holiday euro worth slightly less in winter of 2012
- Holiday euro worth a bit more in Greece than last year
- Worth somewhat less abroad, with the exception of Japan and Brazil
- Hungary and Croatia still leading the list of top destinations
- Holiday euro worth slightly more in many Eurozone countries than in Austria
- Switzerland remains the most expensive holiday destination
There is no definitive trend in the value of the holiday euro for Austrians in the winter of 2012. "On average, the holiday euro is worth somewhat less in the winter of 2012 than it was one year ago because several currencies of popular holiday destinations have appreciated slightly – but there are also exceptions such as Japan and Brazil," said Stefan Bruckbauer, Bank Austria’s chief economist, analysing the most recent calculation of the holiday euro. However, two different tendencies can be observed in the winter of 2012 among the most popular holiday destinations. On one hand, the holiday euro appears to have gained in value compared to Austria in the Eurozone countries on average as a result of the higher inflation in Austria. On the other hand, the holiday euro has lost value for Austrians in non-euro countries because the currencies have appreciated in many of these countries in 2012. "In many Eurozone countries, the holiday euro has benefited from the lower inflation level compared to Austria, while it has suffered in the non-euro countries due to the depreciation of the euro," reported Stefan Bruckbauer, summing up the situation in the winter of 2012.
Among the most important holiday destinations for Austrians, Croatia and Hungary currently offer Austrian tourists the most value for their holiday euros. Travellers will also get considerably more for their holiday euro than in Austria in Turkey, Slovenia and Portugal. "People spending their winter holidays in the US can also expect to get slightly more buying power from their holiday euros than at home, similar to the situation in 2011," added Bruckbauer. The holiday euro is also worth significantly more in many Eastern and Southeastern European countries than in Austria, especially in Romania, Poland and Hungary. However, the holiday euro has lost a bit of value in Poland due to the appreciation of the zloty. "In Greece, the holiday euro is worth somewhat more this winter than it was a year ago. This is a result of the stagnation of prices in the country," noted Bruckbauer.
When it comes to overseas holiday destinations, the slightly higher inflation in Austria hardly plays any role in the value comparison for the holiday euro; here, exchange rate developments are more important. Overall, there is no clear trend in the development of the holiday euro overseas, so it has remained unchanged on average. Nevertheless, there have been some changes compared to last year. For example, tourists will still get much less than at home for their holiday euro in Japan, but they will get 11 per cent more than one year ago. The value of the holiday euro also increased by 9 per cent in Brazil, but in contrast to Japan, tourists will get somewhat more for their money there. The holiday euro has lost a bit of value in many destinations in the South Seas as well as in Australia and New Zealand.
A ski holiday in Switzerland, where 100 holiday euros are worth only EUR 71, remains just as expensive as it was one year ago – the deflation in Switzerland cannot offset the strong currency. In contrast to Switzerland, but also to Austria, the holiday euro would be worth somewhat more on a winter holiday in Germany or Spain, but it is possible that the difference would hardly be noticeable and would not be enough to make up for the longer travel time. Travellers will certainly still get less for their holiday euros than in Austria in Ireland, Canada and Sweden.
In conclusion, the economists at Bank Austria would like to point out that these figures are average values that could differ for individual regions (such as the central region of London, for example). The price levels refer to the average price of goods and services in the individual countries; the prices for individual products could differ substantially (especially for tourists). Therefore, the changes in value rather than the values themselves are listed for holiday destinations. Furthermore, the fact that the price levels are so much more affordable in some holiday destinations than in Austria is primarily due to the high income level in Austria. If the price level were lower in Austria, the income level would also be lower and holidays would be much less affordable.
charts (PDF; 307 KB)
Enquiries: Bank Austria Economics and Market Analysis Austria
Stefan Bruckbauer, tel. +43 (0) 50505 - 41951
Bank Austria Press Office Austria
Martin Kammerer, tel. +43 (0) 50505 - 52803
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