Australia has been a pricey holiday destination over the past decade, but that could be set to change. Jeremy Gates reports

AUSTRALIA may be a dream destination for many, but the costs mean it’s out of reach for lots of Britons.

Twelve years ago, in September 2001, the British pound bought more than three Australian dollars. On April 1 this year, however, £1 bought only 1.44 Australian dollars – a drop of more than 50 per cent over the last decade.

However, a recent plunge in exchange rates means dream Oz holidays may possibly become that little bit more affordable.

‘‘In seven weeks since the start of April, we’ve had a ten per cent movement in the exchange rate between sterling and the Australian dollar, so the pound now buys around 1.54 dollars,’’ says Chris Saint, currency dealing manager at Bristol-based financial planners Hargreaves Lansdown.

‘‘Following the cut in Australian interest rates to an historic low of 2.75 per cent, the rate for Brits could get a little better from here – but don’t hold your breath. The Australian dollar could be weakened by tighter monetary policy in the US, but sterling is hardly in a very strong position either.’’ When the Aussie dollar surged a decade ago, Oz saw a steady decline in the number of British visitors. Just over 600,000 made it in 2012, and figures for 2013 could be even lower.

While accommodation in cheaper hostels costs around 200 dollars a week, prices have soared for food, alcohol, cigarettes, car rentals and eating out.

‘‘The improved exchange rate will help visitors when they get to Australia, but won’t change air fares and hotel prices in existing packages much. Where there could be significant impact is in 2014 brochures, due out soon,’’ says Chris Hawkins of tour operator Australian Sky.

Hawkins says Australian Sky customers spend an average £3,000 per person, usually taking in Sydney, Ayers Rock and Great Barrier Reef.

To counter the fall in visitor numbers, some tour operators are offering discounts on Oz packages for early bookers:

  • Australian Sky (australiansky.co.uk) has cut £1,000 off its 13-day Premier Highlights of Australia escorted tour in early 2014, now starting at £3,699. It combines the must-see destinations of Sydney, Cairns (and the Great Barrier Reef), the Red Centre (and Ayers Rock) and Melbourne and includes 12 nights’ B&B, two lunches and two evening meals, and all international and domestic flights with Qantas.
  • Flight Centre (flightcentre.co.uk) deals in Victoria, and is offering a saving up to £1,868 per couple on a trip taking in Melbourne, the Great Ocean Road for a drive along the coast to Adelaide or the loop inland through the Grampians National Park to the rolling hills of Yarra Valley and its world-class wines.
  • At Austravel (austravel.com), savings on travel by November 30 include free internal flights in Australia and to Malaysian islands with Malaysia Airlines.
  • Austravel seven-day packages in June, from £1,089, include Melbourne, the Great Ocean Road and Tasmania, saving up to £535 per couple. Includes return flights with Etihad Airways ex-Heathrow, three nights at the four-star Citigate Hotel in Melbourne, a Great Ocean Road Day Tour, free internal flights with Virgin Australia, three nights at the four-star Rydges Hotel in Hobart, Tasmania, and four days’ car hire.
  • Austravel also offers nine-night twincentre stays in November, combining Sydney and the Gold Coast, from £1,229, saving £560 per couple. The holiday includes return Etihad flights, four nights at the four-star Mercure Potts Point Hotel, Sydney, a Captain Cook Harbour Cruise, free internal flights with Virgin Australia and five nights at fourstar The Vibe Hotel on the Gold Coast.