Good news for travelers: The U.S. dollar has increased in value over the last year, rising nearly 10 percent against the euro since January. More good news (at least for Americans): Currencies in many typically expensive places are getting weaker.
While currencies always fluctuate, the drop in the euro and the strengthening of the dollar is 鈥渁 condition that analysts believe will persist for at least the next year given Europe鈥檚 economic challenges,鈥 says , chief economist of Chandan Economics and professor at the Wharton School of Business.
Of course, there鈥檚 more to the equation than currency strength. 鈥淲atch out for inflation rates,鈥 says Chandan, who points out that even though Turkey鈥檚 lira has dropped substantially in recent months, inflation has negated any potential savings. The same goes for Russia. Even some would-be value destinations like Egypt, India, and Indonesia aren鈥檛 as wallet-friendly as you might imagine due to inflation.
You鈥檒l get extra bang for your buck if you hit up perennial penny-saving spots like Central America, Southeast Asia, Eastern Europe, parts of South America, and Greece. But if you want to take advantage of the market, it鈥檚 time to consider countries that have been prohibitively pricey for the past few years. These places may never be dirt cheap, but all arrows point to a less painful conversion rate in the coming year. Our five picks on which premium places to put on your radar:聽
#1: Japan聽
For years, Japan has had a reputation as one of the most expensive countries in Asia. But Japan鈥檚 yen is at its lowest level in seven years and the country is once again in a recession. Now鈥檚 the time to think about climbing聽Mount Fuji聽(July to September) or soaking in the glow of聽bioluminescent mushrooms on Hachijo-jima Island, a 50-minute flight from Tokyo (May to September).
If you can鈥檛 wait ’till spring, think skiing鈥擩apan鈥檚 northern most island of Hokkaido聽gets up to 500 inches of powder a year. Niseko, about two hours south of Sapporo, is known to have excellent night skiing and accepts Vail鈥檚 Epic Pass. You could also聽go north about three hours to Daisetsuzan National Park where locals ski. When you鈥檝e had your fill of adventure, do some sightseeing聽or go right to the source of the world鈥檚 best whiskey. According to the Jim Murray Whiskey Bible, that鈥檚 Yamasaki Single Malt Sherry Cask 2013 by Suntory.
#2: Brazil
Hosting the World Cup and preparing for the 2016 Olympics haven’t improved Brazil’s economy. The country had less than half a percent of economic growth in 2014 and the real has plummeted by about 14 percent.
Despite some inflation, you can squeeze out a little more for the dollar than in the past. Hit Rio before it gets consumed by the 2016 Games鈥攊t’s home to the world’s largest urban rainforest and surrounded by mountain peaks, perfect for hiking. Or get out of town. Spot jaguars in Pantanal, the world’s largest wetlands, kayak the Amazon,聽or get lost along the 685 miles of beach in the northeastern state of Bahia.
#3: Canada
Since the U.S. imports far more oil from Canada than any other country, lower oil prices have translated into a weaker Canadian dollar. The Great White North is still expensive, but it’s cheaper than it has been in a while. If you’re a skier, you’re already thinking about which peaks to hit鈥攃heck out Northern British Colombia聽for an unforgettable experience. But from mountain biking around Quebec to trekking Alberta’s Willmore Wilderness and sea kayaking on both the Pacific and the Atlantic oceans, there’s no shortage of adventure to be had in those sweet spots between Alaska and the lower 48.
#4: New Zealand
New Zealand is synonymous with adventure: hiking, fishing, white water rafting, bungee jumping, and聽surfing.聽Americans will pay a premium for this kind of escape, but falling dairy prices have battered the New Zealand dollar and exchanging the greenback for the Kiwi currency is as good as it鈥檚 been since 2012. While we鈥檙e not at historic lows (2001 and 2002 were really great years), the chart is trending in favor of the U.S. dollar. Now鈥檚 also a good time to think about that RV or motorbike trip聽since New Zealand鈥檚 experiencing a drop in gas prices.
#5: Finland聽
It鈥檚 a great time to hit any European country, especially Greece, but consider Finland, which is among the most expensive countries that use the euro. It has one of the slowest growing economies in the eurozone and your dollar will get you farther in this land than it has in some time. Travelers who make the long haul here will be rewarded with nearly tourist-free , , ice fishing,聽and the most saunas per person in Europe (5.3 million people to 3.3 million saunas, ). You can even rent your own private houseboat聽or, if you go in the winter, gaze at the Northern Lights and herd reindeer with the indigenous Sami people.
Bonus Tip:
When paying with credit abroad, you’ll get asked if you want to use dollars or the local currency. 鈥攗sing dollars usually leads to a 3 to 5 percent conversion surcharge.聽聽