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Holiday home hope in Spain - 26 February 2009

The latest figures from Spain’s Ministry of tourism have shown a 20 per cent drop in the numbers of British visitors to the country in January 2009, compared with the same period a year ago. 148,000 fewer Brits packed their bags for Spain this January than this time last year, perhaps a reflection on the dual financial challenges of the global credit crunch and the renewed strength of the Euro against Sterling.

The exchange rate swinging in favour of the Euro zone countries has made travelling to EU member states who have adopted the single European currency significantly more expensive for travelers originating from the UK, which is likely to have pushed people into looking at holiday destinations outside of Europe. On top of this comes the fact the job uncertainty and less disposable income in general, which sees people spending less on luxuries as a whole.

The good news for those who have bought property in Spain and hope to rent it out to holidaymakers is the fact that a separate survey has shown Brits are more likely to give up other luxuries before they sacrifice their annual holiday. Caxton FX surveyed users of its currency card as to their reactions to the credit crunch, and only five per cent said they would opt to give up their annual holiday. Up to 40 per cent of respondents said they would give up spending on clothes and shoes before losing their holiday.

James Hickman, Managing Director of Caxton FX, comments, “Despite the UK’s worsening economic climate, this poll shows holidays remain extremely important and people are determined to take an annual holiday. The statistics from Spain have come about from a fall in the value of the pound - our spending power abroad has been drastically reduced by 24% in Europe.”

While the effects of a high Euro exchange rate are bound to keep some holidaymakers away from Spain completely, many other will just be biding their time and waiting for the right deal to come along before booking their summer holiday. Other will want to see how the economic situation progresses before they decide to commit to spending on their holiday.

A recent test in the London Lite free newspaper indicated that the type of currency card offered by Caxton FX and other providers is the best way to get the best deal on currency exchange. In the test, a currency card outperformed currency exchange service at high Street banks, travel agents and airport currency exchange outlets.

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