Holidays go up as dollar goes south

By BERNARD ORSMAN

The cost of taking an overseas holiday is going up as fast as the New Zealand dollar keeps on falling.

For every $100 converted into American dollars, tourists now get $43.40. Only four years ago, New Zealanders going to the Atlanta Olympics benefited from a booming kiwi and received $US70 for $100, or some 60 per cent more.

It is the same for New Zealanders travelling to Britain. Back in 1996, $100 bought £45. Today it buys £29.

Fans off to the Sydney Olympics are also seeing their Australian spending power decline, but not as fast as against the US dollar or the pound. The Australian dollar is also falling against the greenback, which means $NZ100 is worth $A76. Four years ago $NZ100 bought $A89.

Our dollar plunged about 4 per cent against the US dollar yesterday, with some economists picking a new floor in the low 40s. It is now at its lowest level against the US dollar since it was floated in 1985.

A strengthening US dollar, lack of international confidence in New Zealand and dissatisfaction with the trend in Government policy are behind the latest selloff.

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