Kiwis head to US, Britain to cash in on currency

1800 more New Zealanders left on trips to the United States in August than during the same month in 2009. Photo / Thinkstock

More New Zealanders are holidaying in Britain and the United States because of favourable exchange rates, say travel agencies.

House of Travel retail director Brent Thomas says outbound travel by Kiwis to those countries is up by 30 per cent on last year.

Statistics NZ figures show 1800 more New Zealanders left on trips to the United States in August this year than during the same month in 2009, while 1600 more went to the UK.

"There's no doubt about it - New Zealanders are going to both the UK and the US and enjoying very strong, favourable currency," Thomas said.

At 5pm yesterday the kiwi was trading at US75.17c against the greenback and 47.20p against the British pound.

Thomas said the eastern seaboard of the United States, particularly New York, was a high growth destination with "thousands more" New Zealanders travelling there in 2010 than in previous years.

The favourable exchange rate meant Kiwis could afford to stay in the United States for longer - and in more upmarket hotels, he added.

But as the US dollar weakened this year, the aussie surged to hit parity with the greenback last week.

One kiwi dollar now buys almost the same amount of either currency.

While that may be good news for Australians travelling to the US, it also makes Australia a more expensive destination for New Zealanders.

Thomas, however, said the kiwi's low exchange rate with the aussie dollar (A76.30c at 5pm yesterday, down from around A81c this time last year) was not putting New Zealanders off holidaying across the Tasman, with outbound numbers holding steady.

Flight Centre spokesperson Marie Pilkington said family-oriented destinations such as the Gold Coast were as popular as ever for holidaying Kiwis.

"We're just seeing a rise in travel to America," she said. "It's not at the cost of Australian travel."

Travel website expedia.com yesterday released its twice-yearly Foreign Exchange Index, which shows that Eastern European countries have become better value destinations for those travelling on the kiwi dollar.

Hungary was ranked number one on the index after the New Zealand dollar rose by more than 12 per cent against the Hungarian forint over the past 12 months.

Inbound Tour Operators Council chief executive Paul Yeo said weakening currencies overseas meant some visitors to New Zealand - such as those from the United States - were left with less money to spend.

Tourism Holdings yesterday issued a profit warning arguing that the high dollar is discouraging international tourists from visiting.

The company said it expects to record a loss after tax of up to $1 million for the six months ending December 31, compared to a net profit after tax of $1.37 million in the same period last year.

Where the Kiwi is going further

Expedia Foreign Exchange Index, NZ dollar percentage gain over last 12 months:

1 Hungary (forint)+12.19 per cent
2 Vietnam (dong)+11.84 per cent
3 Croatia (kuna)+9.08 per cent
4 Denmark (krone)+8.93 per cent
5 Latvia (lat)+8.50 per cent
6 Eurozone (euro)+8.06 per cent
7 Romania (leu)+8.05 per cent
8 Morocco (dirham)+7.81 per cent
9 Bulgaria (lev)+7.46 per cent
10 Norway (krone)+5.88 per cent

- Additional reporting NZPA