Posted on 02/19/2004 4:57:13 AM PST by Prodigal Son
BARGAIN-HUNTING Britons are expected to travel to the United States this year in record numbers to cash in on the weak dollar. The exchange rate of $1.90 to £1 is the best since September 1992. Speculators believe it could reach two dollars to the pound within days — a level last seen in the 1970s.
British holidaymakers to New York and Florida have always enjoyed inexpensive meals out and have regarded cheap trainers and designer clothes as an extra perk. But this year they might invest in more expensive items. A four-bedroom holiday home in the sunshine state of Florida, for example, will cost nearly £50,000 less than last year. At least £35,000 could be cut from the price of a two-bedroom luxury condominium near the ocean.
Jewellery prices are also much lower. Couples contemplating marriage could do worse than buy an engagement ring in the US, with a single-carat diamond ring selling for about £1,210; more than £200 cheaper than last year. Compared to the £8,000 cost of a similar ring at Tiffany, the outlay for travel and hotel rooms would be worthwhile.
The latest electrical gadgets are also available at basement prices; an Apple iPod, for example, is about £262 in the US and £399 in the UK. Even CDs are substantally cheaper, costing £6-£7 compared to £10-£14 in the UK. Ralph Lauren Polo shirts sell for £24-£27 compared with £45-£50.
Travel experts believe that the number of British visitors to the US could hit 5 million this year. The average is4 million. Sean Tipton, of the Association of British Travel Agents, said: “I’ve seen return flights to New York quoted for £180. With the exchange rate as well it is a bonus. We are expecting the usual interest in Florida and California and more people to go to the Cape Cod area and around Vermont in New England. But there is also now a burgeoning market in Arizona and Oregon.”
He said it was particularly good news for British people heading for the theme park resorts of Florida and California. Americans traditionally chose these venues for their holidays but after the 9/11 terrorist attacks many had stayed at home and queueing for rides was now less of an ordeal.
Thomson Holidays reported increasing interest in the Caribbean, where local currencies are linked with the US dollar. “People are finding that trips to America offer better value than some of the more expensive short-haul destinations.”
Alison Couper, of the UK company Cellet, which handles travel to more than a dozen American states, said that the US now sawthe UK rather than Germany as its leading market. Las Vegas was popular, with last-minute accommodation impossible to find last week despite the city’s 750,000 hotel beds.
Ms Couper said: “Virgin Atlantic is now running a fourth weekly flight to Las Vegas and some UK charter operators are considering starting new or extra services to America’s eastern seaboard.”
However, Richard Ratner, a retail analyst with Seymour Price, was not convinced that there would be a rush to spend in the US. “People should remember that electrical goods are sometimes not compatible with our circuits. It is not going to be easy to return anything and you cannot guarantee after-service care. If people really want these things they will be buying them anyway on the internet.”
He said that travellers should be prepared to pay duty on expensive items purchased in the US and gave warning that if there were a sudden transatlantic spending spree, Customs officers would be quick to respond.
On a less positive note, sterling’s strength could have repercussions for UK tourism, with American holidaymakers perhaps booking shorter trips, or staying in London only.
VisitBritain, the official tourism body, said Americans would still find it more economical to travel to London rather than the Continent.
Depends how you look on it, I suppose.
All those Brits have to sleep somewhere, eat somewhere, drink somewhere. That's money being added to the economy that wouldn't have been there had those Brits stayed at home.
Would you rather they not come?
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