PwC’s British Overseas Purchasing Power (BOPP) Index combines real wage and exchange rate trends in a single measure. The index covers the 27 countries where UK citizens spend the most on overseas trips.
This year’s update of the BOPP index includes projections of how the index might look in Summer 2018 as compared to the same period in previous years.
In addition to this, we also feature a new 'Winter Sun' variant of the BOPP index, which looks at the trend in the overseas purchasing power of UK wages in popular winter destinations such as Australia and Thailand in December of each year.
Our analysis projects a 6% recovery by August 2018 from the lows of August 2017, but UK holidaymakers will still find themselves 13% short of their pre-Brexit vote purchasing power and 18% down since before the financial crisis in 2007.
The key findings from our 2018 report are as follows:
Within the euro area, British purchasing power has weakened most in Spain and Greece where local inflation was higher. The Brexit vote led to a renewed sharp fall in UK purchasing power in these popular holiday destinations.