Just how cheap are holidays to Turkey right now – and should I take lira?

Does the collapse in value in the Turkish lira provide a sudden opportunity to pick up a bargain holiday? Lots of holidaymakers apparently think so - bookings to the country have soared in the last few days.

“The lira is at an all-time low against the pound [£1 currently buys 9 lira, up from 4.5 a year ago] and thanks to the heatwave [which has seen holidaymakers put off booking trips overseas] there are a lot of good-value deals on offer, so there’s never been a better time to holiday in Turkey,” said a spokesperson for Thomas Cook.  The company has reported a 63 per cent increase in bookings to Turkey this year, with Antalya overtaking Palma de Mallorca as the top destination airport for its customers.

But don’t jump to conclusions too quickly. Because of this spike in demand, package prices are rising rather than falling - so holiday costs might not be as low as you hope. And, in any case, tour operators will have negotiated fixed price contracts with hotels, so they won’t have any currency savings to pass on to customers. A better bet, if you want a really cheap package to Turkey, might be to wait until next year, when tour operators have negotiated improved contracts with hotels.

It is true that meals out, excursions, souvenirs and other costs on the ground will certainly be cheaper than they were a week or two ago, and independent travellers who are able to pay for their accommodation in local currency will also do well. But there are reports that some hotels, and even some taxi drivers, are only accepting foreign currency - so even DIY holidaymakers might not find the vast savings they expect.

Here are some simple tips for travellers who have already booked to go to Turkey in the next few weeks, or those who are looking for a cheap last-minute holiday:

1. There are reports that some hotels and taxis are accepting only foreign currency, so establish in which currency you are being charged before you buy. Consider carrying a mixture of foreign currency and Turkish lira - and a calculator - to ensure you get the best price.

2. Don’t buy your lira in the UK, where rates are poor. Take your pounds with you and shop around for the best deal when you arrive. Change little and often - you don’t want leftover lira at the end of your holiday and the rate may improve further.

3. If your restaurant, hotel or taxi does insist on foreign currency, bargain to get the price reduced - you have a strong hand if you are paying in pounds or dollars.

4. Don't exchange too much cash in one go. Not only is there an obvious security risk, but the situation is quite unstable and rates could drop further. It is better to manage your budgets by paying by debit or credit card, or a pre-paid currency card like Monzo.

5. When paying by card make sure the amount charged is in lira rather than pounds.  

6. Remember that although prices are good value in Turkey, flights are currently expensive and that will offset some of the savings - for a cheap last-minute holiday, on the balance of things, you might do better to try Spain or Portugal.

7. If you can’t find a hotel that accepts lira, opt for one that’s good value in any currency. Our pick of the best budget hotels in the Turquoise Coast is a good place to start.

What does this mean for Turkey’s tourism industry?

Turkey’s tourism industry has had a difficult few years, with its visitor numbers peaking in 2014 at 41.2 million but then slumping to 25.3 million in 2016, after numerous terrorists attacks, an attempted coup and ongoing political stability.

A security drive - and a thaw in Russo-Turkish relations - led to a resurgent sector last year, with visitor numbers rising to 32.4 million. That looks certain to increase again in 2018.

Is it safe to visit Turkey?

Despite the slump in visitors over terror and instability fears, the Foreign Office (FCO) only advises against travel to parts of the south-east of the country, where Turkey shares a border with Syria and Iraq. The tourists resorts around the south and west coast, such as Bodrum and Antalya, have been largely unaffected.

“British nationals made over 1.6 million visits to Turkey in 2017,” says the FCO. “Most visits are trouble free.”

Where else is the pound strong?

A recent slump in the value of sterling has made it harder and harder for British holidaymakers to get bang for their buck abroad, especially in the eurozone. The pound is performing well in a few places, however, with travellers to Argentina and Brazil also enjoying magnified spending power.