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You are here: Home Finance & Business Banking Weak pound ends British love affair with French holiday...

07/03/2009Weak pound ends British love affair with French holiday homes

Brits are becoming more cautious about investing in French vacations, as the economic crisis is changing tourism around the world.

The pound's collapse is making Britons think twice about heading across the English Channel for a break and about their love affair with buying French holiday homes, experts say.

The British currency has plunged against the euro in recent months, casting a deep shadow over the mood at January’s annual France Show in London, which showcases the Gallic holiday and property market.

Visitors were softened up with Beaujolais nouveau, saucisson and the strains of accordion wafting in the background but many admitted that their French projects may have be shelved due to sterling's slump.

"This move down is a shock, but it could be the kind of path of things to come," said Mark O'Sullivan, director of dealing at foreign exchange specialists Currencies Direct. "The euro may trade at 1.10, 1.20 for the next couple of years, so we need to be used to where it is, to be quite honest.”

About 30,000 Britons usually attend the France Show.

The French Show 2009

 

                         
Tightening their belts

The British invasion of some parts of France is well documented. For years, buyers flush from booming property prices here have bought property in places like the Dordogne, turning some areas into virtual British enclaves.

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