Where sterling is still strong

Fed up with sterling's slump against the dollar and euro? Whether it's snow or sun, here are the destinations where sterling is still strong...

Traditionally, this is the time of year when us Brits try to banish our winter blues by looking at where to jet off to this summer.

However, with the pound's continued demise against the US dollar and euro, you may be worried your holiday will be a lot more expensive this year.

According to currency expert International Currency Exchange (ICE), the pound has fallen a mighty 30% against the dollar since last summer. Sterling has also crashed 12.5% against the euro, though this is still a far cry from the lows of last December, when many feared we would reach euro parity.

So, if you're fed up of dwindling rates, what are the alternatives?

Save money skiing

If like many holiday makers, you like to wait until the last minute to book your ski holiday, here are ICE's top tips for bargain ski destinations:

Source: ICE

While sterling may have fallen against the euro and US dollar, it has gained a mighty 13% against Russia's rouble.

Although Russia may not be the first place that comes to mind when thinking of the slopes, ICE highlights there are over 100 ski areas across the country.

And, with billionaires such as Roman Abramovich loaded with money to spend, resorts are set to boom in development over the coming years.

The Czech Republic is also highlighted as a cheap ski destination. Personally, I was surprised to see it on the list, as the koruna had been riding high against sterling for the majority of last year.

However, the currency has since eased, and sterling has gained 8% over the past six months.

In fact, there is no shortage of cheap ski destinations at the moment, and according to Marks and Spencer, the best place to hit the slopes for value is Bulgaria.

Although Bulgaria forms part of the EU, the euro is not set to replace Bulgaria's currency, the lev, until 2012. So you'll probably find most items are still cheaper than the euro zone - particularly, according to M&S, when it comes to skiing.

The retailer compiled a ski holiday basket, comparing prices for a wide range of goods including ski passes and hire, together with prices for food and drink across eight countries around the world. Bulgaria's basket was the cheapest at just £471.

Compare this to Switzerland's basket, totalling £585, and you can see you really can make substantial savings.

But if you're not so keen on Bulgaria, M&S also recommends Italy as a good alternative - particularly when eating out. A three course meal for two including wine cost £56 in Courmayeaur in Italy, compared to £75 in Flaine, France.

In addition, for those looking for cold climates, but not necessarily skiing, troubled country Iceland is still a decent bet.

Although the currency has recovered from lows of ISK 220 per £1 back in December to ISK 162 today, sterling is still up 5.2% against the krona now compared to six months ago.

Soaking up the sun

These destinations may be ideal for those looking to frollock in the snow. But what if it's not snow you want, but sun? Here are ICE's top three bargain destinations for sun:

I know what you're thinking. It's all well and good to save a few reals here and there on currency exchange, but what use are they if you've got to fork out a small fortune to get there?

Sure, flying half way across the world to Australia or New Zealand is likely to set you back a hefty sum (and it won't do much to help the planet, either). But if you were contemplating a holiday further afield, now couldn't be a better time to experiment.

Both currencies have suffered more than sterling during the economic downturn, with falling commodity prices also playing a factor in their demise.

In addition, falling fuel prices mean you maybe able to pick up a decent long-haul deal, with several airlines extending sales because of the economic downturn.

Counting the true cost

As well as considering the cost of getting to your destination, you also have to look at how much things will be when you land.

According to Mercer's 2008 cost of living survey, while Russia may present the biggest bargain on the slopes, it's also judged to be the most expensive city in the world.

Mercer's index, which looks at 200 items in 143 countries around the world, also found ICE bargain family destination Norway to be pricey, with Oslo in Norway judged the fourth most expensive city in the world.

Still, Oslo is still cheaper than London, which claims third spot behind Tokyo. So in theory, wherever you decide to go, it should still be cheaper than prices over here.

Wherever your adventures take you this year, one thing is clear: 2009 is the year of the smart traveller. Sterling doesn't look like it's going to recover against the dollar or euro any time soon, so if you are prepared to fork out for that airfare, it couldn't be a better time to explore those exotic destinations further afield...

More: Five tips to fight the rising euro / Cut the cost of your ski holiday