The Australian dollar’s recent decline in value against major currencies has hiked the cost of overseas travel to many destinations for Australians. The dollar’s slump from a high of 69 US cents in September to a low of 62 cents on Friday makes a holiday in the US less affordable, while Japan is discouraging Australian tourists from flocking to its major cities.
So where can holidaymakers still travel on a budget?
Get ‘that island feel’
The Cook Islands in the middle of the Pacific, a six-hour direct flight from Sydney, offer all the perks of a Pacific island holiday at a fraction of the price, says Charissa Hanrahan, a travel designer for MTA Travel.
“It’s almost like you would imagine Fiji, 20 or 30 years ago,” she says.
The islands use New Zealand’s dollar, which like the Aussie has fallen against overseas currencies, so Australian travellers have a decent exchange rate on their side, with A$1 buying NZ$1.10 on Friday.
The Australian dollar kept its value in the Cook Islands and New Zealand over most of 2024 into 2025 but fell in Fiji as it slumped around the world.
While flights to the Cook Islands may cost as much as a flight to Fiji, travellers could find places to stay for less than A$200 a night and buy meals for half the price, Hanrahan says.
“You really get that island feel,” she says.
Hanrahan suggests hiring a scooter to ride around the islands or “just hop in a kayak and go out in the crystal clear water, go snorkelling, go for a walk in the forest, enjoy the food and relax on the beach”.
Cross the ditch
The Aussie dollar’s strength in New Zealand means travelling across the ditch has stayed affordable.
To keep costs low, Hanrahan suggests hiring a campervan – about A$120 a day for a two-berth van or A$220 for a six-berth including toilet and shower – and camping at free sites all along the North or South Island.
But the Australian dollar has had a rough few months in many other countries, says Hanrahan, so it may be easier for holidaymakers to save themselves the exchange rate hassle and take a look in their own back yard.
“Explore Australia, there’s so much to do here,” she says.
Bargain hunters looking for a beach break can find cheap domestic flights with fares from Sydney to Byron Bay as low as $60 and Brisbane to Airlie Beach for $99, according to Virgin Australia.
Off-peak bargains in south-east Asia
Those looking for a beachside holiday could swap Vanuatu for Vietnam, says travel agent Tracy King.
“You can go to…
Click Here to Read the Full Original Article at Travel | The Guardian…