Yahoo Finance How Brexit has sent the cost of overseas weddings soaring
The plunging pound has pushed the cost of an overseas wedding up by as much as a quarter.
A wedding in South Africa that would have cost £10,000 before last summer’s Brexit referendum will today set couples back an additional £2,500.
And the situation is mirrored at potential venues across the globe – with the exchange rates hitting spending power in Thailand, India, Australia, Europe, the US and beyond.
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The only exception, according to research by financial services firm Hargreaves Lansdown, is Turkey, where political unrest has hit the value of the lira.
Just before last year’s vote, £1 would buy $1.47 – today it is trading around $1.28. It is a similar story against the euro, where it stood at €1.30, but now commands just €1.13.
The rising cost of marrying abroad
Currency | £10,000 in foreign currency at June 2016 rates | Today’s cost in sterling for the same amount of foreign currency | Increase in sterling cost |
South African Rand | 215,416 | £12,519 | £2,519 |
Indian Rupee | 998,220 | £12,000 | £2,000 |
Thai Baht | 519,720 | £11,826 | £1,826 |
Australian Dollar | 19,679 | £11,603 | £1,603 |
Euro | 13,048 | £11,541 | £1,541 |
US Dollar | 14,803 | £11,490 | £1,490 |
Hong Kong Dollar | 114,805 | £11,411 | £1,411 |
Singapore Dollar | 19,791 | £11,112 | £1,112 |
Maldivian Rufiyaa | 222,380 | £11,086 | £1,086 |
Japanese Yen | 1,551,540 | £10,565 | £565 |
Turkish Lira | 42,768 | £9,192 | -£808 |
Source: Hargreaves Lansdown
Chris Saint, senior currency analyst at Hargreaves Lansdown, said: “With the average cost of a UK wedding now north of £25,000, it’s understandable that couples often look abroad to cut the costs of the big day, with the added bonus of more reliable weather, luxurious venues and exotic cuisine.
“Even those who stick to the UK for the big day face bigger honeymoon costs if travelling overseas.”
Saint warned that with more political upheaval likely in the UK, the pound could be in for more choppy months ahead.
5 tips to help you make the most of your overseas wedding budget.
1) Choose your destination carefully – exchange rates and local costs can make a big difference to the overall cost.
2) Beat the banks’ exchange rates – banks are typically uncompetitive when it comes to exchange rates and using specialist currency brokers can typically save up to 3%, a £225 saving on a transfer of £7,500.
3) Watch out for transfer fees – banks will often add extra fees regardless of the amount being transferred. If you are transferring small amounts or making regular payments, such as to multiple wedding suppliers, this can make a big difference.
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4) Keep to your budget and fix your exchange rate – many currency brokers will allow you to fix an exchange rate for up to two years. This is called a forward contract and will help you to stick to your budget, especially if you don’t have room for your costs to increase.
5) Make sure your money is safe – firms that have been authorised by the Financial Conduct Authority (FCA) are normally considered safer than firms who are just registered firms. This is because authorised firms are legally required by the FCA to safeguard the assets of individuals and businesses making international payments.
