budget travel asia

Travelling to Hong Kong is always exciting. You can exploit the amazing shopping, not to mention the sounds and sights of a top class town with a completely unique mix of the ultra-modern and the conventional. It is always wise to know how far your cash will go, especially in a world wide recession.

The good news is if you want to buy hong kong dollars, the GBP is worth just as much today in Hong Kong as it was one year gone. The exchange rate for Sep 12, 2011, for the GBP was 12.33 HKD, only a touch higher than the rate of 12.10 HKD measured in Sep, 2010. The difference of 0.23 HKD amounts to only 2 pence. Your money would buy the same food, lodging and conveniences as it might one year gone in Hong Kong, in spite of the rates of inflation.

But if you're looking to milk a rise in the GBP compared with the HKD to make your cash go further in Hong Kong, there's little to celebrate. The fairly even economy over the last year with only slight fluctuations doesn't lend itself to giving you the benefit you're looking for.

Before the Great Recession of 2008, the GBP was worth much more in Hong Kong, with an exchange rate of one GBP to $15.29 HKD. Brit visitors could get a lot more for their money in Hong Kong, an increase of 20% compared against today's exchange rate. A calming afternoon at Stanley Market, a ride up the escalator to Victoria Peak, or an outing to Kowloon could all be purchased for a lot less than you would pay today, in spite of the rate of inflation.

Over the last 3 years, a low point was reached in January, 2009, with an exchange rate of one GBP to 10.59 HKD, a difference of 30%. The value of the GBP stayed low, hovering around the 11.00 HKD mark, till April, 2009, when it started a slow but consistent increase. Another low point was reached in May, 2010, with a rate of one GBP to 11.19 HKD. Since then there has been a slow incline, peaking at 12.92 HKD at the start of Aug, 2011.

During the last year, the GBP has remained fairly steady compared to the HKD. A low point of 11.90 HKD was reached in Sep, 2010, with the high point over the last year being 12.96 HKD at the start of May. The biggest difference between the high and the low values was 9% for a total of 1.06 HKD or 8 pence during the past year.

During the last month, there was been a steady decline in the value of the GBP compared with the HKD. On Aug 12, 2011, the GBP was worth 12.69 HKD. The price declined to 12.33 HKD by Sep 12, 2011, a difference of 3%.

PROGNOSIS

Since September 1, 2011, the value of the GBP has declined a little. If the trend in the last year repeated itself, the GBP would slowly gain value (roughly 4 pence) against the HKD up till November when it might level off. Brit travellers who want to see lights of Hong Kong will likely find only a modest fluctuation in HKD exchange rates, based primarily on past trends.