Low exchange rate affects Costa residents and holidaymakers

CONCERN is increasing among residents on UK state pensions who are effectively losing up to 20 per cent of their income because of the weakness of the pound against the euro.
The pound recently hit its lowest exchange rate against the euro since the single currency was launched and for those on fixed UK-based pensions it's a major issue.
One UK army pensioner living in on the coast as said: “I was getting 1,200 euros for my pension last summer, now the exchange rate leaves me with just 970 euros.”
Expat pensioner Pam Parker, who has lived in Spain for 15 years said: “I know there is nothing we can do about the exchange rate but this is terrible for us.
“We are both well past working age – 75 and 80 – with no savings. Our pensions are all we have to live on and it was very difficult as it was. Now it will be a real struggle.”
The elderly couple have seen their pensions’ values drop 50 euros from December to January alone.
Another resident said: “We’re losing between 10 and 15 per cent per year at the moment, and that’s a very big problem for many people.”
The official exchange rate yesterday (Thursday) was of 1.33 euros to the pound, with the majority of ‘non-commission’ exchange bureaus changing at 1.31. In summer 2007 it was in the region of 1.50 euros.
Lower pensions due to exchange rate slumps add to the increase in the cost of living in Spain over the past 12 months and the 7.9 per cent rise in prices of basic products.

HOLIDAYMAKERS
The pound’s weakness is also having a detrimental effect on tourism.
Many UK holidaymakers are shunning the Costas because of current exchange rates and travel firms say it has prompted many to opt for countries that are not in the single currency.
Holidaymakers on the coast confirm the trend.
“We think it’s stopping people from booking holidays to Euro countries. We recently booked to go to Egypt in August and that holiday has worked out cheaper than being in Benalmádena, and we’ve only been here three days!” said Mr and Mrs Langley from Chester, who added: “Our friends back home are now choosing to go to Bulgaria and Croatia because you get more for your money.”
Exchange offices are obviously feeling British holidaymakers’ discontent.
Pedro Martínez from Eurochange told CDSN: “I would say that 100 per cent of people that walk into this shop moan about the exchange rate. When they are in the UK they see they can exchange for 1.25, and here its 1.30, so they think it’s not too bad. But they realise they’re not getting as much as they thought or used to get. What they don’t realise is that last summer the exchange rate was nearly 1.50.
“I have also noticed that cigarette sales have gone down a lot. Tourists aren’t packing their cases with cigarettes anymore because they end up losing out too much.”
Holidaymaker Mathew Morris from Barnsley agreed: “It’s the end of my *** runs! I reckon people who do *** and booze runs will think twice from now on.”

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