A strong pound has made shopping cheaper for anyone flying away for a festive spree at the Christmas markets of St Petersburg, Prague and Budapest this year.
Sterling’s rise against many other currencies has brought mixed blessings for the UK economy. Imported goods are cheaper but for exporters the stronger pound makes their products more expensive to overseas buyers, denting already fragile demand.
From Russia with shopping bags
For holidaymakers, the pound’s rise – and the rouble’s weakness – means shopping in Russia is 38% cheaper than a year ago. A trip to St Petersburg’s Christmas is about 90% cheaper than in 2010, according to figures compiled by the travel money company FairFX.
Cheaper eurozone shopping
Thanks to the pound’s strength against the euro, Christmas markets such as Strasbourg, Aachen, Vienna and Brussels offer shoppers 23% more for their money than five years ago, or 11% more than last Christmas, it found.
The exchange rate between sterling and Hungary’s forint has made shopping there more than 10% cheaper than last Christmas.
Budapest bargains
Tourists in Norway are 20% better off than last year thanks to the exchange rate and those going to the Czech Republic get 36% more.
“This Christmas is the cheapest in five years to do your Christmas shopping abroad thanks to the strong performance of the pound,” said FairFX’s currency expert, Darren Kilner.
Sterling’s strength has been reflected in airline passenger numbers. Budget carrier easyJet recently said holidaymakers jetting off to take advantage of the strong pound helped it notch up a record August.
Its rival Ryanair also credited a strong pound with boosting passenger numbers as it reported a jump in profits this month.
Christmas market currency wars
