One Million Britons Abandon Their Spanish Holiday As The Pound Slumps Against The Euro

One million Britons have abandoned Spain's bars and beaches in the last year after the pound dived against the euro, Spains main tourism trade body has said. Spain, the world's second busiest tourist destination after France, it welcomed 16 million Britons in 2007 but in 2008 as the pound weakened to near-parity with the euro (a 22.4% fall) Spain lost 1 million British tourists.

Nick Fullerton, FC Exchange said: "There's going to be a lot less money for the pound, it means that everything is going to be costing more while you're abroad. Compared to last year it is going to be about 20% more expensive from the moment you land to the moment your leave."

Helen Warburton, head of travel at the Post Office said: "Holiday makers planning visits to eurozone destinations will find that the pound wont stretch nearly so far as it has in the past. Sterling's continuing slump means that tourists face a 10% drop in buying power of the pound now compared with six months ago and a massive 23% less than 12 months ago."

While the up-front cost of package deals is unlikely to be significantly affected by the change in the exchange rate, holiday makers will have to count their euros and cents every day.

There are also fears that some travel firms could exploit small print in contracts and impose surcgarges, which they are allowed to do if currencies continue to fluctuate.

A Post Office survey has shown the biggest price rises are in Italy, where a typical three-course evening meal for two will cost £46.53, compared with £37.87 last year. A bottle of beer is £3.26 - up from £2.65. The rise will add hundreds of pounds to a two week family holiday.

Here is a comparison based on the following typical holiday costs consisting of:

A cup of cofffe, a bottle of beer, can of coke, bottle of mineral water, factor 15 suncream, postcard and stamp for the UK, insect repellent, pack of cigarettes, an English tabloid newspaper and a three course evening meal including house wine.

Total Cost in December 07 against Total Cost in December 2008

Spain: £53.35 - £65.56 - Up £12.21
Tenerife: £56.92 - £69.93 - Up £13.01
Greece: £58.08 - £71.38 - Up £13.30
Cyprus: £61.75 - £75.88 - Up £14.13
France: £62.10 - £76.32 - Up £14.22
Portugal: £62.99 - £77.40 - Up £14.41
Italy: £66.12 - £81.25 - Up £15.31

(Source: Post Office. Date relates to euro exchane rates 10/12/08)

Follow this link to read more about the costs of holidaying in Italy

Follow this link to read more about the costs of holidaying in France