This was the conclusion drawn from the Post Office’s Holiday Money Index, which covers the 12 months to January 2023.
The index found the value of the Egyptian pound experienced a "dramatic" fall, which, according to the Post Office, could make Sharm el-Sheikh and other Red Sea resorts a cheaper choice for Brits looking to holiday abroad this year.
Analysis of exchange rate movements revealed visitors to Egypt will get almost 73% more than a year ago for their pounds – the equivalent of more than £210 extra on a £500 currency transaction.
This means those visiting Sharm el-Sheikh will pay around £48 for a three-course meal for two with a bottle of wine, compared with more than twice that amount in Antigua (£100) or Barbados (£105).
This comes despite the value of the pound slipping in value against some of the most popular holiday currencies last year.
Analysis of exchange rates now compared with three and six months ago reveals sterling is now 5% weaker than last August against the Euro and has dropped 9.5% against the Hungarian forint, adding to the cost of a city break in Budapest.
The currencies showing greatest growth compared with the pre-Covid period (February 2019-January 2020) are those for Caribbean and Latin-American countries – despite year-on-year falls of more than 11% in sterling’s value.
Led by the East Caribbean dollar, where sales rose 137%, these currencies take the top seven places in the Post Office’s 10 fastest growing currencies for the 12 months to January 2023.
Although sterling has slipped in value against some of the most popular holiday currencies, the data suggests the appetite for trips abroad remains resilient.
Tour operators say bookings are rising steeply and currency sales analysis from Post Office Travel Money confirms the upward trend.
Ed Dutton, portfolio director, financial services at Post Office, said: "The fairest measure of demand is to compare currency sales now with the busy period before the Covid-19 pandemic.
"Sales of Caribbean and Latin-American currencies were particularly strong then, so it is encouraging that they are even more buoyant now.
"However, sterling has fallen in value against many of these currencies so holidaymakers should factor this into their holiday budgeting."
