This morning the British Pound only bought 2.16 Turkish Lira highlighting not only the strength of the Turkish currency but also the weakness of the Pound.
Turkey has been enjoying a bumper tourist season this year. This is partly due to cost conscious Brits who have been told in the UK press that their traditional holiday in the Euro zone sunny spots would cost them much more this year (around 15% more). So where were they told would be a cheaper place to visit for a short haul sunny holiday? Turkey.
However, the diminishing value of the Pound on the international markets, just like falling UK house prices and an imminent recession can’t be avoided when going on holiday. Today the Pound only buys 2.16 YTL on the wholesale markets with the typical high street bank or foreign exchange only offering 1.91 YTL. Better rates can be obtained by shopping around but the buying power for the British tourist and ex-pat is now seriously reduced compared to last year. Last year at this time the Pound bought 2.66 YTL nearly 40% more than now.
So when will the Pound return to its once strong position? Well not for time according to finance experts who see the worsening housing slump, rising inflation and pending recession as a reason to mark the British Pound as a risky investment. Until the economy turns around we are all going to have to expect our holidays to cost more wherever we go. The days of the ‘Pound a pint’ holiday destination now seem long gone.
Fethiye Times will be publishing the annual cost of living comparison in the next few weeks so make sure you call by to see how much life in the sun really costs.