Families to pay £200 more for holidays abroad as pound reaches yet another low against the Euro

Their typical spend of £1,000 on a twoweek sunshine holiday to France, Greece, Spain or Italy could balloon by as much as £200.

It is the latest example of the global credit crunch hitting ordinary families.

International money markets have forced down the value of the pound against the euro because the British economy is perceived as vulnerable to the global financial turmoil.

Last year £100 bought 139 euros, according to the tourist rate from the Post Office. It is some 18 per cent more than the figure of 118 today - the lowest figure since the currency was introduced nine years ago.

A study predicts this will add as much as 22 per cent to the cost of hiring a car, buying a meal or a glass of beer.

Around four million of us spend the summer holiday in one of the eurozone countries, meaning the impact of the currency shift could put another £800million on top of our total spend.

Industry analysts suggest that holiday bookings over the next few weeks will shift away from eurozone countries to alternative destinations such as Turkey, eastern Europe, north Africa and the United States.

Others may decide to holiday at home this year, despite the high charges for family friendly accommodation.

The punishing increases, which come as a further blow to households already paying more for their mortgages, were identified in research by the Post Office.

It found that the price of a bottle of beer from a bar in Spain is up by around 22 per cent to £2.19. Spain attracts more British holidaymakers than any other country.

A cup of coffee in France is up 17.5 per cent to £1.68, and a meal for two has soared by the same figure to just over £46.

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The currency shift means a bottle of wine in Italy is up by some 84p to £5.64.

The Post Office's head of travel Helen Warburton said: "Sterling has fallen in value by 17 to 18 per cent compared to the euro over the past year and consumers going into Europe are looking at much higher costs.

"Our research shows very significant increases in the cost of popular holiday purchases, particularly eating and drinking.

"We expect that the change will have an impact on holiday bookings. People are going to be looking outside the eurozone.

"We have already seen a 15 per cent increase in our currency sales for Turkey, which indicates people are looking for destinations where their holiday money will go further.

"Other options include eastern Europe, particularly Bulgaria and Hungary."

Miss Warburton said the U.S. will look like a more attractive option. "Given that the pound is worth almost two dollars and the prospect of cheaper transatlantic flights, the U.S. could offer very good value," she added.

Prices in the States are on par with this time last year because the ratio of the pound to the dollar has remained fairly constant.

A cup of coffee is virtually unchanged at £1.60, while a can of Coke remains at around 80p. A restaurant meal for two is around £3 more this year, at just over £55.

Other good-value long-haul destinations-include South Africa, Jamaica and Dubai.

The likely switch away from traditional European destinations was confirmed by the travel industry trade body ABTA.

But spokesman Sean Tipton said that those heading to destinations such as France, Spain and Greece can manage their money carefully and still have a good time.

£If people steer clear of the tourist bars and restaurants, big savings are possible,£ he said. £If you eat where the locals eat and drink local wines, you can save money and will have a far more enjoyable experience of the country."

Sean Gardner, of personal finance website MoneyExpert.com, said that yesterday's cut in the Bank of England's base rate means the pound will remain weak against the euro.

"The rate cut and worries about the UK economy have sent the pound sliding to near all-time lows against the euro and that means holidays on the Continent will be up to 17 per cent more expensive this summer," he said.

"A pound bought 1.5 euros last summer - now it'll only get you around 1.25 euros. And that makes everything more expensive, from a bottle of lager to suncream and car hire."

A Thomas Cook spokesman advised travellers not to panic, because European destinations are still generally better value than home.

"For instance, a bottle of beer or a pint of milk are still cheaper in Spain than in England," he said.