British tourists can get more for their money by travelling further afield this summer
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British holidaymakers can stretch their holiday budget by travelling further afield this summer.
The pound is at its highest value in five years and has risen against all of the 27 currencies on which the Bank of England collects data.
UK tourists will see the biggest gains when travelling to South Africa, Australia, Thailand, Indonesia, Russia and Turkey.
Holiday hot spot: The best bargains can be found in Turkey where sterling has risen in value by 30 per cent against the Turkish lira
Sterling is now at a five-year high against the US dollar, having climbed 10 per cent in the past 12 months.
It is also up 23 per cent against the Indonesia rupiah and Australian dollar, 24 per cent against the Thai baht and 26 per cent against the Russian ruble and South African rand.
The best bargains can be found in Turkey, where sterling has risen in value by 30 per cent against the Turkish lira.
In contrast, the pound rose a relatively modest 2.5 per cent against the euro in the same period.
Forecasting group the EY ITEM Club reported that sterling had been strengthened by falling unemployment and wage growth.
Unemployment fell to below 7 per cent for the first time since 2009 and wage growth overtook inflation for the first time in nearly four years.
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Martin Beck, senior economic adviser for the EY ITEM Club, told The Times newspaper that holidaymakers opting for European destinations would not get as much value for money.
But he said: 'Looking ahead, sterling could rise further against the single currency, reflecting the UK economy's relatively stronger growth prospects.'
'We also expect the pound to decline in value against the US dollar, with monetary policy set to tighten sooner than in the UK.
'This decline would tend to push down sterling's value against currencies linked formally or informally to the dollar, including many emerging economies, or belonging to countries that trade heavily with the US, like Canada.'
Last month a report by Post Office Travel Money Post Office revealed that British tourists travelling to Turkey, South Africa and Thailand would enjoy 25 per cent to 30 per cent more sterling spending power than last year, thanks to the strength of the pound combined with weakening of the local currency.
The research showed that two thirds of the top selling 20 currencies had fallen against sterling by over 10 per cent compared with 12 months ago, and a fifth had fallen by over 20 per cent.
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The only currency that hadn't fallen was the New Zealand dollar, where the pound buys 7.8 per cent fewer dollars than a year ago.
The Holiday Money Index study revealed that a UK tourist in South Africa or Turkey would pocket an extra £115 on a £500 holiday.
The report compared 25 leading cities on the cost of 12 items including accommodation, drinks, meals, sightseeing and local transport fares.
It revealed that Budapest offers the best bargains for Britons booking a city break, with the cost of a two-night trip for a couple totalling £117 per person.
Eastern Europe provided the best value for tourists, with Lithuania's capital Vilnius the next cheapest city (£118), followed by Warsaw (£132) and Prague (£136).
The most expensive city was historic Boston on America's east coast, with a typical two-night stay costing a wallet-busting £412.
New York was the next most expensive destination at £366.
The best buy in the eurozone was Lisbon, at £137, less than half what you would pay in Rome (£302), Amsterdam (£310) and Paris (£311), according to the report.
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