Holiday euro in summer 2015:
"Holiday euro" worth more in Europe in 2015, but much less overseas
- Holiday euro worth more in Europe due to higher Austrian inflation
- Yet overseas it is worth roughly 15 percent less due to weaker euro
- Hungary, Turkey and Croatia top list of main destinations
- Holiday euro worth roughly the same in USA as in Austria, but some 10 percent less in UK
- Switzerland remains the most expensive holiday destination by far
There is no clear-cut trend for the value of the holiday euro for Austrians in 2015. "In summer 2015 the holiday euro is worth the same as last year on average", said Stefan Bruckbauer, chief economist at Bank Austria, analysing the latest calculation of the holiday euro, before adding: "But if we look at the holiday euro on long-haul trips, it transpires that it is worth around 17 percent less in these cases." In this context there are two different trends this year with the most popular holiday destinations. On the one hand, the holiday euro has gained in value on average in the eurozone countries compared to Austria – a consequence of the higher inflation in Austria. On the other hand, in countries that don’t have the euro, the holiday euro has lost considerable value for Austrians as the euro has markedly depreciated. "The holiday euro benefited in many euro countries from the lower inflation than in Austria, while in the non-euro countries it suffered from the depreciation of the euro", said Stefan Bruckbauer, summarising the situation in summer 2015.
Among the main holiday destinations for Austrians, holidaymakers from Austria currently get more for their holiday euro in Hungary and Turkey. They also stand to get noticeably more in Croatia, Slovenia, Greece and Portugal than in Austria. "Those spending their holiday in the USA this year can expect prices to be similar to Austria, while one year ago prices were roughly one-fifth cheaper", said Bruckbauer. In many countries of Eastern and South-eastern Europe the holiday euro is also worth much more than in Austria, first and foremost in Bulgaria, Romania and Poland, and this advantage has even increased slightly compared to last summer. "In Greece the holiday euro this year is worth around 20 percent more than in Austria, having gained another 3 percent compared to the previous year. This is the result of falling prices in this country", explained Bruckbauer. Since the start of the crisis in 2008 the value of the holiday euro for an Austrian holidaymaker in Greece has thus risen by around five percent.
Overseas the somewhat higher inflation in Austria barely plays a role when comparing the value of the holiday euro, here the exchange rate trend is more important. "The depreciation of the euro since the summer of 2014 has significantly reduced the value of the holiday euro overseas for Austrian tourists; this year you get around 17 percent less than in the previous year", revealed Bruckbauer. In Asia in particular but also in Africa we have seen a sharp decline in the value of the holiday euro, while the weaker euro had less of a negative impact in Latin and Central America because these currencies also lost value. The difference in countries like Brazil or the Dominican Republic compared to the previous year is small on average, but it amounts to 20 percent in Mexico. If someone spends their holiday in the United Kingdom they will find this year that their holiday euro is again worth a little less than at home, whereas last year it was worth 9 percent more. "Holidaying in London will show that the holiday euro is worth noticeably less than in Austria for the first time this year, and roughly 12 percent less than one year ago", said Bruckbauer. The same applies for a holiday in Canada.
Taking a holiday in Switzerland is still expensive, where 100 holiday euros are now worth just 59 euros – the sharp appreciation in the currency cannot compensate for the deflation in Switzerland. As an alternative to Switzerland, but also to Austria, the holiday euro would be worth slightly more if holidaying in Germany or Spain, but this is perhaps less noticeable and too small to compensate for the longer journey. The holiday euro is definitely worth less than in Austria if going to Ireland and Sweden.
In conclusion the Bank Austria economists point out that these are average figures, and individual areas (such as London as a central region) can differ. The price levels relate to averages of goods and services in the individual countries; individual products (particularly for tourists) can deviate from these significantly. This is why no values were given for long-haul destinations, only the changes in the figures. 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 difficult to afford.
Charts (PDF; 236 KB)
Bank Austria Economics and Market Analysis
Stefan Bruckbauer, Tel. 05 05 05 - 41951
Bank Austria Media Relations Austria
Matthias Raftl, Tel. +43 (0) 50505 - 52809