2014 Expedia Foreign Exchange Index points Kiwi travellers to Asia

On March 05, 2014 at 02:14 AM
  • Best time to travel to Japan is now – Kiwi dollar stretches further than any in other country
  • Asian hot spots dominate top five best-value destinations
  • Kiwi dollar gains value against multiple holiday destination currencies

Double digit growth by the New Zealand dollar against many major currencies has expanded the list of great value travel destination choices for Kiwis, with regions like Japan, Indonesia and Australia offering strong purchasing power, according to the 2014 Expedia Foreign Exchange Index.  

For the second year running, Japan offers the best overall value for Kiwi travellers as the New Zealand dollar increased by 20.6 per cent in 2013 against the yen, cementing Japan as the must-visit destination for travellers looking to get value for money in a traditionally pricey destination.

Now in its fifth year, the 2014 Expedia Foreign Exchange Index measures the performance of the New Zealand dollar against major global currencies, taking into account foreign exchange rates and inflation.

The 2014 Index reveals the New Zealand dollar gained in value against 12 of the 15 top destinations, an opposite trend to the Australian dollar, which lost ground against 13 of its 15 top destinations for travellers.

Top destinations based on the purchasing power of the New Zealand dollar against other major currencies in 2013*:

Rank

Country

Local currency

NZD percentage gain YOY

1

Japan

Yen

20.6%

2

Indonesia

Rupiah

25.4%

3

Australia

Dollar

16.0%

4

Nepal

Rupee

12.4%

5

Brazil

Real

14.4%

6

Canada

Dollar

6.5%

7

Thailand

Baht

6.3%

8

India

Rupee

12.3%

9

Malaysia

Ringgit

6.5%

10

Fiji

Dollar

4.7%

11

Singapore

Dollar

2.7%

12

Vietnam

Dong

0.5%

13

USA

Dollar

-0.7%

14

UK

Pound

-2.6%

15

Europe

Euro

-4.7%

 

* Countries ranked in terms of value against the New Zealand dollar taking both foreign exchange rates and inflation into account as at 31 December 2013, compared to rates one year prior. Percentages calculated using fx rate movements.

Georg Ruebensal, Managing Director Expedia Australia and New Zealand, says: “The New Zealand dollar made great strides in 2013, giving Kiwis more choice for great value holiday destinations. It’s great to see such strong purchase power across Asia, Europe and North America – now there’s no excuse for Kiwis not to start working through their bucket list.”  

“While the New Zealand dollar currently has strong purchase power across the globe, the currency market is known to fluctuate, which can impact holiday spending. Keeping a close eye on exchange rates, hunting for deals, being flexible with dates and bundling hotels and flights to benefit from additional discounts are also great ways to stretch the travel budget further.” 

Interestingly, Kiwis are already choosing holiday destinations with strong purchase power – consciously or not – with demand for destinations like Legian and Kuta in Indonesia and Hanoi, Vietnam experiencing significant YOY increases since the early new year[1].   

ENDS

Methodology

Expedia assessed a range of foreign currencies against the Australian dollar over a 12 month period (1 January, 2013 to 31 December, 2013). The percentage rate of change between those foreign currencies was calculated against the Australian dollar. The annual rate of inflation in those countries was then calculated over the same period and then subtracted from the percentage change in the exchange rates. These calculations produced a ranking of countries whose currencies give travellers greater value against the Australian dollar. 


[1] Based on Expedia.co.nz data between 15 January, 2014 and 15 February, 2014.

 

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