Sagging dollar hits the holiday pocket

By SCOTT MacLEOD

Mangere man William Massey tried to spend as little as possible during his three-week holiday in Britain - but still paid out $4000 for food, drinks and transport.

And Auckland internet manager Mark Ottaway's five-week holiday to the United States with his wife and two children cost more than $25,000.

The reason? Our dollar has fallen so much against British, North American and Japanese currencies that New Zealanders travelling there have to pay more for everyday items.

In Japan the kiwi now buys less than half as much as it could in 1997 - down from 87 yen to 43. In Canada, a round of six Heineken stubbies in a nightclub now costs $NZ55 with a standard 15 per cent tip.

New Zealanders are starting to change their travel habits because of the weak dollar.

Travel consultants Alasdair McIntyre and Associates said the number of people who travelled overseas in August dropped 3 per cent on the same period last year - down from 114,679 to 109,962.

One of the sharpest changes for holiday travel was to North America - down by 24 per cent - and "other Americas" - down 60 per cent. Fiji's drop of 90 per cent was probably due more to the coup than the exchange rate.

But as fewer people travel to expensive countries, more are seeking cheap holiday spots. Holiday travel to Pacific islands other than Fiji soared by 21 per cent and in Africa and the Middle East by 6 per cent.

Mr McIntyre said travel to the US and Britain was likely to slip further by Christmas, but he felt more people would go to Australia, the Cook Islands, Fiji and Indonesia.

"When the dollar goes down it is usually bad news for outbound travel," he said. "We've had a massive decline this time."

Thomas Cook travel agents communications manager Peter Hansen also said the number of people taking holidays in the US and Britain was likely to drop further - because it took several months for trends to emerge. Travellers tended to plan long-distance holidays six months in advance and to book their tickets with three months to go.

Mr Hansen said there was no evidence that people travelling to expensive countries were having to cut short their holidays, but the Herald did find one person.

Wellington man Glenn Clements came home from London three days early, after spending $4500 on alcohol in a 29-day European jaunt.

"I drank the whole lot," he said. "To go out on the turps in London you will spend $NZ12 on a pint of beer.

"It was going to cost another $1200 for three days."

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