Great price barrier

Australia may be a dream destination for many, but the costs mean it’s out of reach for lots of Brits.

Twelve years ago, in September 2001, the British pound bought more than three Australian dollars.

On April 1 this year, however, £1 bought just 1.44 Australian dollars – a drop of more than 50 per cent over the last decade. However, a recent plunge in exchange rates means dream Oz holidays may become more affordable.

“In seven weeks since the start of April, we’ve had a 10 per cent movement in the exchange rate between sterling and the Australian dollar, so the pound now buys around 1.54 dollars,” says Chris Saint, currency dealing manager at Bristol-based financial planners Hargreaves Lansdown. “Following the cut in Australian interest rates to an historic low of 2.75 per cent, the rate for Brits could get a little better from here – but don’t hold your breath. The Australian dollar could be weakened by tighter monetary policy in the US, but sterling is hardly in a very strong position either.”

When the Aussie dollar surged a decade ago, Oz saw a steady decline in the number of British visitors. Just over 600,000 made it in 2012, and figures for 2013 could be even lower.

While accommodation in cheaper hostels costs around 200 dollars a week, prices have soared for food, alcohol, cigarettes, car rentals and eating out.

“The improved exchange rate will help visitors when they get to Australia, but won’t change air fares and hotel prices in existing packages much. Where there could be significant impact is in 2014 brochures, due out soon,” says Chris Hawkins of tour operator Australian Sky.

Hawkins says Australian Sky customers spend an average £3,000 per person, usually taking in Sydney, Ayers Rock and Great Barrier Reef.

Adding to the above, a number of 
tour operators are offering discounts 
on Oz packages for early bookers:

Australian Sky (0843 636 7517, www.australiansky.co.uk) has cut £1,000 off its 13-day Premier Highlights of Australia escorted tour in early 2014, now starting at £3,699 if booked by May 31.

It combines the must-see destinations of Sydney, Cairns (and the Great 
Barrier Reef), the Red Centre (and 
Ayers Rock) and Melbourne and 
includes 12 nights’ B&B, two lunches 
and two evening meals, and all international and domestic flights 
with Qantas.

Flight Centre (0844 800 8624, www.flightcentre.co.uk) deals in Victoria, saving up to £1,868 per couple, take 
in Melbourne, the Great Ocean Road 
for a drive along the coast to Adelaide 
or the loop inland through the Grampians National Park to 
the rolling hills of Yarra Valley and its world-class wines.