The cost of a 4-person holiday to Europe this summer could rise by £230 following a vote to leave the European Union.
The Treasury’s analysis of the immediate impact of a vote to leave, published on Monday, estimates the value of the pound will fall by 12%, making travel in Europe and the rest of the world more expensive.
With the pound expected to fall dramatically immediately after a vote to leave, travel costs such as accommodation, food and drinks would be higher for families travelling overseas.
New Treasury analysis shows that on average, after 2 years, a 4-person holiday travelling together would spend £230 more during an 8-night holiday in Europe.
The fall in the value of the pound would therefore affect all holiday expenditure abroad that is paid for after a vote to leave the EU on 23 June.
A vote to leave would also affect the cost of holidays to popular destinations outside the EU, such as Florida, with sterling expected to depreciate against other currencies including the US dollar.
Prime Minister David Cameron said:
“All the evidence points to the value of the pound falling after a vote to leave the EU. A weaker pound means people’s hard-earned savings won’t go as far on holidays overseas.
The choice facing the British people on 23 June is increasingly clear: the certainty and economic security of remaining in the EU, or a leap in the dark that would raise prices – including the cost of a family holiday.”