Sedensjok: Shot in the air

Turkey has long been a favorite holiday destination for Norwegians, largely because the price level was much lower than other favorite places further south.

But in recent years, inflation has risen significantly. in In 2021, inflation rose by 30 percent and in the same year food prices rose by 44 percent..

The latest figures show that inflation has risen by 44 percent so far this year.

Nearly 30 percent more expensive

Reserve Bank 1 I've posted an overview About how expensive it is to vacation abroad. For example, you get 17 percent less ice cream for your money in euro countries like Spain, Greece, Italy and France.

– A 17% rise in ice cream prices may not be a spoiler for you at the poolside. But it's easy to get tougher in the mask if you consider that the entire holiday will be 17 percent more expensive than it was five years ago – just in pure currency changes, comments savings and investment expert Martin Graftus at Sberbank1.

In the case of Türkiye, the exchange rate went in the opposite direction, and the Turkish lira declined sharply over the past year.

While this time last year you paid NOK 45 for 100 lira, you'll only pay NOK 33 this year, Graftås explains to DinSide. But the exchange rate alone does not give the full picture.

– When you travel abroad, of course it is not only the currency that determines whether it is “expensive” or “cheap”. The general level of prices in the country you are visiting also has a lot to say.

Because, as mentioned earlier in this issue, Turkey's inflation rate is 75 percent, which gives these calculations from Graftås:

– A good that cost 100 liras, or 45 Norwegian kroner, a year ago, today costs 175 liras, or 58 Norwegian kroner. This means that a Norwegian on holiday in Turkey would have to pay approximately 29 percent more today for a product than a year ago.

beloved

Robert Ness, investment director at Nordea, agrees that traveling to Turkey for holidays is becoming more expensive for Norwegians.

Since mid-July of last year, the prices of what tourists usually leave their money for, such as hotels, restaurants and cafes, have risen by 57 percent. In the years before that, development had been stable. Prices rose in lira, but due to the currency's weakness, the Norwegian krone ended up more or less unchanged.

– This means that for those traveling to Turkey this year, they will often have to pay 50 percent more for what they buy, he told DinSide.

At the same time, he stresses that despite the high prices, Turkey is still an affordable holiday country for Norwegians, and points out Cost of living index in Numbeu Türkiye ranks 101st among the most expensive countries in the world.

For comparison, other popular summer destinations for Norwegians are located in the following places:

• Denmark: tenth place
• Italy: 32nd place
• Greece: 40th place
• Spain: 54th place
• Portugal: 60th place
• Albania: 77th place
• Thailand: 94th place

Furthermore, Norway ranks ninth on the Numbeo Cost of Living Index 2024.