Seychelles-Top of list of affordable holiday destination

Seychelles tops a list of holiday hotspots that have become more affordable since the sharp decline in the value of the pound.

The news is positive for those hoping to travel further afield, with the value of the pound rising by 61 per cent against the Seychelles rupee and 15 per cent against the Brazilian real in the six months to December 2008.

Brazil, Australia and Poland are also amongst the destinations which offer better value for Britons now than they did six months ago, according to a new study.

A rise in the value of the pound against the currencies of these countries means Britons will see their cash go further, it said.

It means more traditional sunshine destinations in Europe, such as Spain, could miss out on much of this summer's British tourist trade, experts warned.

The research by Halifax revealed that the value of the pound declined by 14 per cent against the euro between June and December last year, making trips to countries in the euro-zone more expensive.

But some European countries outside the euro-zone became more affordable during the same period due to a rise in the value of the pound against their currencies, it said.

British holidaymakers visiting Poland in December would have received approximately 4.42 Polish zloty per pound, an increase of 4 per cent compared to six months earlier.

Those visiting Iceland in June 2008 would have found that £1 would buy 156 Icelandic krona, while visitors in December would have received around 176 Icelandic krona per pound, an increase of 13 per cent.

The value of the pound also rose by 7 per cent against the Australian dollar and by 1per cent against the New Zealand dollar in the past six months.

Martin Ellis, chief economist at Halifax, said: "The pound has fallen significantly against both the euro and the US dollar in recent months, substantially increasing the costs for UK citizens of holidays and city breaks in many of the most popular tourist destinations.

"However, it is not all doom and gloom. The pound has also risen in value against a number of currencies in the past six months, making it more affordable for Britons to holiday in some places in Europe as well as a number of destinations further a field."

Duncan Barraclough, head of hotels at Travelsupermarket.com said: "People don't want to sacrifice their holidays and the traditional destinations that have done well in the past, such as Spain, are being affected by increased costs and people are now seeking genuine alternatives."