Revealed: the one holiday destination where the pound rode out the Brexit storm

Hugh Morris
Domestic flights are good value so how about a trip to Mendoza? - @ Pawel Opaska
Domestic flights are good value so how about a trip to Mendoza? - @ Pawel Opaska

The pound’s travails over the last five years are no secret, with each dip since the EU referendum hitting the pockets of British holidaymakers.

In the spring of 2016, one pound earned around €1.30 and $1.47; it is now €1.17 and $1.29, but both have since offered much more stark comparisons, with sterling once at near parity with the euro.

The impact on traveller spending power has forced some to consider more closely the in-resort costs of their trip, and choose destinations accordingly: swapping Spain for Turkey, France for Greece, Italy for Egypt.

But some of the best havens for value are further afield.

According to research by currency analysts Equals, the nation to have consistently offered British holidaymakers bang for buck - considerably so - since the referendum is a 14-hour flight away.

Buenos Aires, the Argentinian capital - Credit: istock
Buenos Aires, the Argentinian capital Credit: istock

There has never been a better time to visit Argentina, says Equals, which has tracked the pound against the Argentinian peso since 2016, when a pound bought 20-odd pesos; it now buys 78. 

Sterling is up 274 per cent on the peso compared to June 2016, the month of the referendum, the figures show, and has sustained similar levels since; compared to January 2017, the pound is up a huge 307 per cent. That means that UK travellers earn an additional £754 more in the local currency for every £1,000 exchanged.

“Now more than ever holidaymakers need to be aware of what the pound is doing,” said Ian Strafford-Taylor, CEO of Equals.

“The good news is there are some destinations where the pound has managed to weather the Brexit storm, and these could be the places to visit if you want your holiday money to stretch further in 2020.”

Chris Moss, Telegraph’s Travel’s Argentina expert, says there are ways to ensure Britons make the most of the currency savings.

“Hotels don’t adjust much while holiday lets do,” he said. “So AirBnb and similar are good options for getting power out of your pound.”

He points out that some flats in the Palermo neighbourhood of Buenos Aires start from £20 a night, while a glance at the hotel rates provided on the Telegraph’s page for the best hotels in the city still display costs into the hundreds per night. 

Similarly, while the cost of international flights may not alter (though Argentina is now served by low-cost, long-haul operator, Norwegian, as well as British Airways), domestic flights, long-distance buses, public transport and locally booked excursions are all good value, Moss says.

“But the biggest benefits are perhaps in food and drink,” he says. “A steak dinner in a posh parrilla like La Brigada can now be had for £20-£25 for two, with a decent wine. This would have cost twice that a few years ago.

"Argentina also makes its own bubbly and the weak peso makes such luxuries accessible, for now – because this period of sweet money (plata dulce in Spanish) for Britons won't last.”

Moss said that packages or organised tours do not seem to be any cheaper.

Argentina is not alone in having offered good value to British holidaymakers in the last few years: neighbouring Brazil has seen sterling perform well, with the real down 83 per cent today compared to June 2016. Zambia, too, a popular safari destination, is an option, with the kwacha down 15 per cent.

 

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