Up, up and away with Aussie dollar

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This was published 14 years ago

Up, up and away with Aussie dollar

By RACHEL BROWNE
Airfares

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TRAVEL agents are predicting a mass exodus from the country as Australians book overseas holidays buoyed by renewed consumer confidence, low airfares and the surging dollar.

It has gained 21 per cent against the US dollar over the past six months. Some economists predict it may go higher.

The exchange rates are also favourable for travellers to Britain and Europe, with the dollar's value increasing 13 per cent against the pound and 10 per cent against the euro.

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Travel agents are reporting that bookings to the United States are up by as much as 20 per cent in the past month. One agency, Travelplan, which specialises in skiing holidays, said a strong increase in bookings began when the Australian dollar started to rise. ''There's never been a better time for Australians to travel overseas,'' the company's marketing manager, Tanya Singer, said. ''Airfares are low, the Australian dollar is high and the mood is a lot more confident now so people are willing to travel.

''Our bookings for the US ski season are up by about 20 per cent as a result.''

Insight Vacations' managing director Lorraine Sharp said interest in holidays to Britain and Europe had increased substantially in the past month as the Australian dollar rose against the pound and the euro.

''It's a completely different story from this time last year when everyone wanted to stay at home,'' she said.

''Confidence has been restored, people know they can get good value for money overseas and they're starting to travel in larger numbers.''

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Flight Centre spokesman Haydn Long said the company had also experienced a rise in business since the dollar began its mid-year ascent.

''Volume is certainly up for the US, the UK and Europe,'' Mr Long said.

While the Australian dollar's rise was a factor, travellers are also influenced by bargain airfares and economic conditions at home. ''A return flight to the east coast of the US costs about $1100 to $1200, which is about half the price it was 12 months ago,'' Mr Long said. ''Return flights from Sydney to London have come down by about $600 over the past 12 months.

''The rising dollar has also made people feel a little bit more confident in the state of the economy. So there are a lot of factors going on.''

Research from Flight Centre showed that, when cheaper airfares and the exchange rate were taken into account, the cost of the average holiday to Britain or the US had decreased by about $1200 on the same time last year.

However, the exchange rate is bad news for domestic tourism, already struggling in the wake of the global financial crisis and the swine flu pandemic.

The Tourism Australia Global Market Monitor found that in the six months to June 2009, inbound tourist arrivals fell 2 per cent on the same period last year.

Tourists from the US and Britain were down 10.3 per cent and 13.9 per cent respectively.

Tourism Forecasting Committee chairman Bernard Salt said the rise in the Australian dollar was a factor in deterring foreign tourists from visiting.

''The value of the dollar is certainly playing a part, but I don't think it is a determining factor,'' he said.

''The price of the airfare, often the most expensive part of the holiday, is more of a determining factor, along with consumer confidence.

''Confidence is starting to recover in countries such as the US and the UK, but there is still a way to go.''

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