Travel destinations where the Kiwi dollar will go further in 2024

Thursday, 18 January 2024

Josh Martin is a London-based journalist who writes across business and travel topics.

It’s mid-January and you’ve come to the conclusion that two of your New Year resolutions are seemingly in direct conflict: travel further and be better with your finances.

You could banish one to the bin and then focus solely on the other (possibly to forget about that too by mid-April), but why don’t we just fudge it: aim for the destinations where a Kiwi dollar on the rebound goes further than in 2023, even as inflation remains strong in many destinations.

Some of my selections are evergreen budget-friendly spots, beloved by backpackers, while others are sometimes labelled “expensive”, but in 2024 will offer better value thanks to a weaker currency rate against the NZD, lower rates of domestic price rises - or both.

It’s also worth noting that the Kiwi dollar’s 7% rebound against its US equivalent, from $0.58 to $0.62 in the last three months, is beneficial to those travellers heading to one of the many dozens of countries which peg their exchange rate to the US dollar.

Turkish Lira

Turkey’s unorthodox approach to getting its runaway inflation under control has lead to its currency collapsing over the last year. Pre-Covid, one NZ dollar would get you 3.5 Turkish lira, by January 2021 it was 9.5 lira, and this time last year it was 12.5 lira. Now it’s 18.5 lira to the NZ dollar, basically doubling in two years and outstripping the effects of many price rises, since price rises in an economy don’t affect every product equally.

Rooms in a 3-star hotel in Izmir, near the ruins of Ephesus, with breakfast in peak summer season can be found for $75-85 a night. Meanwhile a pint of Efes (the local brew) near Taksim Square is still around 100 lira ($5.45), if you’re lucky.

Japanese Yen

What on earth is Japan doing being mentioned in an article emphasizing low prices, you may ask. And that’s fair. Japan has never been considered a budget break. However, it does offer particularly good value for tourists as 2024 gets underway. Unlike Turkey, Japan has a problem with very low, and often no, inflation in its economy. The prices don’t move. Combine this with a stronger Kiwi dollar, with $1 going from 82 Yen a year ago to 90 Yen (a 10.3% gain) and the Land of the Rising Sun makes a strong case for rising up your travel priority list.

Thai Baht

Thailand’s long been the poster child for budget holidays and finding luxury stays for reasonable rates, so even though the NZ dollar has only appreciated against the Thai baht by 5% in the last six months, it still makes the cut. And of course, the prevalence of the bartering in Thailand and other nations means official data on prices tell only part of the story…you’re as thrifty as your shameless haggling skills allow.

Koh Samui island is home to many a chic 4-and-5-star boutique resort, and even over the Easter break you can nab a room at one for around NZ$200 per night. The more budget constrained who yearn for Thailand “as it used to be”, should check out Koh Muk, which is car-free and hotel rooms are easily sub-$100 per night, or the far-flung bougie Koh Lipe which is part of the same Southern island group.

Georgian Lari

To begin with - the national dish, Khachapuri, is a bread boat filled with gooey cheese, so you may not even need to read on to be convinced to book. An average hotel room at a 3-star in the capital city’s Old Town hovers around $100-120 per night including breakfast in the peak summer season of late August 2024. And, if you lock in the rate now, your NZ dollar buys 1.65 Georgia Lari, beating the 1.55 of August 2023.

The capital of this former Soviet state, Tbilisi, has been rocketing up travellers’ bucket lists in recent years due to its charming hodge-podge of architecture, cuisine and history – thanks to its place on the centuries old Silk Road trade route. Local data SIM cards are a steal at $10 for 15GB, while you should expect change from NZ$50 a meal for two at a local specialty restaurant.

Argentine Peso

Don’t cry for me Argentina, unless you’re a business investor dealing with one of Latin America’s shakiest economies. The Argentine peso crashed in the latter half of last year, and its devaluation against the Kiwi dollar was larger than local inflation rates, so you should get more pesos for your dollars and those pesos should go further. This time last year, a Kiwi dollar would get you 115 Argentine pesos, now it’s more like 500 pesos.

Swerve the near-perennial protests in Buenos Aires and head to Mendoza wine country, where boutique hotels and vineyard stays in March start from $80 to $250 per night respectively. Get more Malbec for your moolah.

Vietnamese Dong

Think Thailand is good bang for your buck, wait ‘til you get to Vietnam. Nearly all of the tourist essentials – transport, accommodation, eating out, attraction entry fees – offer excellent value. It’s no wonder the country is a mainstay on the “banana pancake trail” backpacker route through South East Asia. But the country isn’t short on luxury resorts either.

You’ll be feeling a little more lux wherever you stay, due to the New Zealand dollar being about 8% stronger against Vietnam’s currency than it was six months ago, meaning a local brew on Hanoi’s ‘‘beer street” is around 30,000 VND (just under $2) while a bowl of beef pho is typically 50,000VND ($3.30).