28.06.2013

Holiday Euro Summer 2013:
Holiday euro worth more in summer 2013

  • Trend buoyed by stronger euro and lower inflation abroad
  • Particular increase seen abroad this year
  • Hungary and Turkey still the best-value top destinations
  • Holiday euro worth a bit more in many Eurozone countries than in Austria
  • Switzerland remains the most expensive holiday destination; Japan inexpensive for the first time

On the whole, the value of the holiday euro for Austrians is increasing in summer 2013. "On average, the holiday euro is worth a little more in summer 2013 than it was last year, because the currency has appreciated and inflation has been slightly lower than in Austria", said Stefan Bruckbauer, Bank Austria's chief economist, analysing the most recent calculation of the holiday euro. Hardly any holiday destinations had higher rates of inflation than Austria – and even for those that did, any difference was largely cancelled out by depreciation. "In many Eurozone countries, the holiday euro has benefited from the lower inflation level compared to Austria, while in the non-euro countries it has benefited from the euro being stronger", reported Stefan Bruckbauer, summing up the situation in the summer of 2013.

Among the most important holiday destinations for Austrians, Turkey 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 Croatia, Slovenia and Portugal. "People spending their summer holidays in the US this year can also expect to get noticeably more buying power – nearly 20 per cent – from their holiday euros than at home", 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 Bulgaria, with the gap between these countries and Austria roughly the same as last summer. "Compared with 2012, people this year are getting more for their holiday euro in Turkey in particular, but also in Greece, the UK and nearly all other overseas destinations", said Bruckbauer.

On average, the value of the holiday euro in overseas destinations increased by some 7 per cent on last year. There was a particularly sharp rise in Africa, where depreciation significantly outstripped rising inflation, pushing up the value of the holiday euro by some 9 per cent, most notably in South Africa but also in Egypt. However, tourists can also get somewhat more for their money in Asia and South and Central America this year. Depreciation has meant that the holiday euro is worth some 6 per cent more in Brazil than it was last year. Only Mexico saw a fall, due to slight appreciation coupled with rising inflation. Australia and New Zealand are also cheaper than this time last year, although the holiday euro is still worth less in these countries than in Austria. "In most Asian countries, the holiday euro is worth more than in Austria and also more than it was a year ago. And, for the first time, Japan is not any more expensive than Austria, with the holiday euro having increased in value by 24 per cent year-on-year", said Bruckbauer.

Holidaying in Switzerland, where 100 holiday euros are worth only EUR 67, remains just as expensive, with deflation unable to offset a strong Swiss franc despite slight depreciation. In most Eurozone countries, people are getting slightly more this year than they did last year – in each case relative to Austria – as inflation has been lower. Thus most Eurozone countries will give travellers the same (Italy, France, Germany) or slightly more (Spain, Greece) for their holiday euro than Austria; only in Ireland is the holiday euro still worth significantly less than in Austria.

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.

 Tabellen (PDF; 422 KB)

Enquiries: Bank Austria Economics & Market Analysis Austria
Stefan Bruckbauer, Tel. +43 (0) 50505 - 41951
E-mail: stefan.bruckbauer@unicreditgroup.at

Bank Austria Press Office Austria
Matthias Raftl, Tel. +43 (0) 50505 - 52809
E-mail: matthias.raftl@unicreditgroup.at