Press release -
Holidaymakers get the Latin rhythm
- Costa Rica leads a Latin-American charge as summer currency sales surge by 84 per cent
- US puts on biggest growth among Post Office bestselling currencies top 10
- Cities rated best-value in recent Post Office reports reap the benefit with a significant growth in sales of Hungarian forint and Polish zloty
As a new term marks the end of the school holidays and the start of the winter sun season, Costa Rica has emerged as the summer’s biggest success story in Post Office Travel Money’s Fastest Growing Currencies report for June-August¹.
Fuelled by the introduction of direct flights from the UK, bringing Costa Rica’s low-priced beach resorts within easy reach, an 84 per cent year-on-year rise in summer sales of its currency - the colon - signals the country’s emergence as a major long haul holiday destination.
The strong summer performance is part of a sustained growth trend for Costa Rica, according to Post Office Travel Money, which accounts for one-in-four of all UK currency transactions.Post Office sales of the colon are 46 per cent higher in the year to date2 than in 2015, when the currency topped the annual Fastest Growing Currencies list with a 46 per cent increase.
Costa Rica’s colon is just one of four Latin-American currencies that are breaking Post Office records this year. There has been strong demand for the Brazilian real as sports enthusiasts jetted off to Rio for the Olympic Games. Real sales rose 70 per cent year-on-year to take second place in the Fastest Growing Currencies summer chart (+41 per cent for 2016 to date).
The winter sun forecast looks good for Peru – another destination boosted by new flights from the UK - as sales of the nuevo sol have risen a further 19 per cent to build on last year’s 27 cent annual growth.The Chilean peso (+23 per cent) completes the quartet of Latin-American currencies featuring in the top 10 growth chart for 2016 to date.
Christopher Dewe, Head of Post Office Travel Money, said: “Costa Rica is the latest Latin American destination to come within the orbit of adventurous holidaymakers.With gains for Brazil, Chile and Peru as well, there is little doubt that growing numbers of UK tourists are prepared to travel long distances for their holiday.”
Caribbean destinations also appear to have been popular because sales of the Barbados dollar have risen 27 per cent year-on-year over the school holidays, making this the 5th fastest growing summer currency. A 21 per cent rise in sales of the East Caribbean dollar (7th place) compared with 2015 suggests that Antigua and St Lucia have also done well with families.
Long haul destinations continue to dominate the Post Office Fastest Growing Currencies summer chart as they have done for the past decade – taking eight of the top 10 places.Other successes that indicate a growing taste for tropical travel include the Omani rial (+59 per cent, 3rd), Indonesian rupiah (+57 per cent, 4th) and Korean Won (+23 per cent, 6th).
Despite the setback of a weaker pound, the Post Office reports buoyant sales for top currencies during June, July and August. Three-quarters of its 10 bestsellers showed healthy sales growth compared to last summer.The biggest increase was made by the US dollar, which is second only to the euro in the Post Office bestsellers top 10.A 17 per cent year-on- year rise in dollar sales provides evidence that US travel is still perceived as good value even though the pound buys 13 per cent fewer dollars than it did 12 months ago.
After topping last summer’s growth chart, demand has dampened for destinations ‘down under’.Although both the Australian dollar and New Zealand dollar have retained their places in the Post Office Bestsellers top 10 for the year to date, sales have fallen back to 2014 levels.This is not surprising, given that sterling is down in value against both currencies since last year by around 20 per cent when the pound was at a five-year high.
In Europe an 11 per cent summer surge in sales of the Post Office’s bestselling currency helped the euro move into the Fastest Growing Currencies chart for the first time, but only in 17th place.Away from the eurozone Croatia scored a record-breaking summer as sales of the kuna rose for the sixth successive year, having now trebled since 2010.As a result, the Croatian kuna has risen to fifth place, its highest rating, in both the summer and the year-to-date bestselling top 10.
But neither currency features in the Fastest Growing Currencies summer top 10.Instead the Polish zloty (+18 per cent, 8th place) and Hungarian forint (+16 per cent, 10th) have taken the remaining two places in the chart.With city breaks now the most popular type of overseas holiday taken by UK tourists3, the best value ratings given to Warsaw and Budapest in the Post Office’s City Costs Barometer and Cost of Culture reports are likely to have boosted demand for both cities and help to explain the ongoing rise in sales for their currencies.
Christopher Dewe said: “Looking ahead, we expect Eastern European cities with a great reputation for value to be popular this autumn.But whatever type of holiday they choose, UK holidaymakers will be looking for the best possible return on their pounds and this will come through a combination of competitively-priced holiday packages and low costs in destinations.
“It is already clear from currency sales in recent weeks thatdestinations on the ‘most wanted’ list are those where prices on the ground are low or perceived to be good value and this is further evidence that people are becoming increasingly savvy in their holiday choice.”
30 currencies are available on demand at 1,600 larger Post Office branches, while over 10,000 offer euro over the counter and 4,000 offer US dollars. Up to 70 currencies can be pre-ordered at over 11,600 Post Office branches or online at postoffice.co.uk for next day branch or home delivery, providing purchase options that are better for customers.
ENDS
For more information, please contact:
Gabrielle O’Gara Post Office Press Office 0207 250 2534 / 07718 977702
Gabrielle.ogara@postoffice.co.uk
Notes to Editors:
1 Post Office Top Ten Fastest Growing Currencies for June-August 2016 and year to date (note: where currencies have the same percentage gain, the order is determined by decimal points):
| Summer Fastest Growing Currencies | Jun–Aug2016 v. 2015 | Fastest Growing Currencies 2016 to date | Jan–Aug2016 v. 2015 |
| 1.Costa Rican colon | +84% (7) | 1.Indonesian rupiah | +50% (9) |
| 2.Brazilian real | +70% (-) | 2.Costa Rican colon | +46% (1) |
| 3.Omani rial | +59% (-) | 3.Brazilian real | +41% (-) |
| 4.Indonesian rupiah | +57% (5) | 4.Danish kroner | +29% (-) |
| 5.Barbados dollar | +27% (-) | 5.Chilean peso | +23% (-) |
| 6.Korean won | +23% (-) | 6.East Caribbean dollar | +19% (-) |
| 7.East Caribbean dollar | +21% (-) | 7.Peru nuevo sol | +19% (3) |
| 8.Polish zloty | +18% (-) | 8.Polish zloty | +19% (-) |
| 9.US dollar | +17% (-) | 9.Icelandic krona | +16% (-) |
| 10.Hungarian forint | +16% (-) | 10.Japanese yen | +16% (2) |
Table restricted to major currencies with annual sales of over £400,000. Figures in brackets refer to 2015 placing.2 Post Office Top Ten Best Selling Currencies for 2016 to date and summer 2016
|
Summer Bestsellers
June–August 2016 |
Bestsellers 2016 to dateJanuary–August |
| 1.Euro (1) | 1.Euro (1) |
| 2.US dollar (2) | 2.US dollar (2) |
| 3.Canadian dollar (5) | 3.Australian dollar (3) |
| 4.Australian dollar (4) | 4.Canadian dollar (4) |
| 5.Croatian kuna (6) | 5.Croatian kuna (8) |
| 6.Turkish lira (3) | 6.Swiss franc (6) |
| 7.Swiss franc (7) | 7.Turkish lira (5) |
| 8.Thai baht (8) | 8.UAE dirham (9) |
| 9.Norwegian krone (10) | 9.New Zealand dollar (7) |
| 10.UAE dirham (9) | 10.Thai baht (10) |
Figures in brackets refer to 2015 placing.
3 Source: ABTA Travel Trends Report 2016
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