Financial Gain in Spain is now a real pain

EVERY year nearly 60,000 quit Britain to move to Spain, dreaming of golden beaches, blue skies and jugs of sangria.

But in recent months life in the sun-kissed paradise has turned to purgatory.

Punishing exchange rates have left many counting the cost of life on the Spanish Costas.

In the past year the British Pound has plunged almost 12 PER CENT against the Euro - and ex-pats on fixed incomes such as British pensions are severely out of pocket as a result.

To add to the misery, Spanish house values have fallen by 20 PER CENT in some areas - which is terrible news for the thousands who want to come home but cannot find a buyer or cannot afford to sell.

Hundreds more also face the prospect of bulldozers moving in on "illegal" homes which breach local planning laws.

In the Costa Blanca, For Sale signs have sprung up in every street.

Some tragic couples are even being forced to sell their furniture for spot cash to keep the creditors at bay.

Article adapted from The Sun.

Could it happen in Thailand?

Could you substitute the word Thailand for Spain in the article above ?

Prices in Thailand are certainly going up. The Baht is much stronger against the pound than it has been of late. The International rate stands at 62.3 THB to the UK pound. It didn't seem long ago it was 75+ THB to the pound.

Are Thai property prices doing or about to do the same as Spain ?

Are ex-pats in Thailand about to go through the Spanish experience ?

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Holidaymakers are also feeling the pinch !

Travel firms putting the squeeze on foreign holidays

Shoppers reeling from the credit crunch are now being hit by soaring summer holiday prices.

A shake-up of the UK holiday industry has led to more than a million fewer beds, with popular destinations such as Spain, Portugal and Egypt costing up to 12 per cent more.

One travel agency chain advised holidaymakers to shift their main fortnight break to the winter when there are bargains to long-haul destinations.

The Co-op Travel group predicted 1.25million fewer breaks compared to last year. Mergers between tour giants Thomas Cook and MyTravel and Thomson and First Choice have led to a drop in flights and hotels. In November, Thomson's parent company TUI announced 12 per cent of cuts while Thomas Cook slashed the former MyTravel holiday programme by around 23 per cent. Mike Greenacre, boss of Co-op Travel Trading Group, said: "Holidaymakers have got used to having plenty of holidays to choose from, which has fuelled the growth of late breaks.

"We are predicting a shortage of package holidays this summer, particularly to favourite destinations."

Research by the Co-op, based on sales of three million holidays, shows that average prices for summer 2008 have risen by almost three per cent.

Popular places such as Greece and Turkey are up nine per cent, Spain and Portugal up eight per cent, Egypt up 12 per cent and Malta up 10 per cent.

But the cost of a winter holiday on the Caribbean island of Antigua is down by 18 per cent from £2,126 a head last year to £1,744 this year.

A winter holiday in Dubai is down 13 per cent and in the Egyptian resort of Taba, it is down 12 per cent.

Daily Mirror 24-05-08

And what will be the effect on Thailand ?

Only Chinese, Korean and Russian tourists?

Era of cheap flights is over says British Airways boss as price of oil soars

British Airways' boss Willie Walsh has said the golden age of cheap travel is 'over' as airlines face spiraling fuel prices.

He said that passengers now face a bleak future of higher fares and surcharges levied to cover the rising cost of oil.

Mr Walsh warned many airlines will go bust or be forced to merge.

He predicted that the death-knell would sound for smaller no-frills budget airlines, led by the likes of Ryanair and easyJet, which have boomed with headline-grabbing cut-price deals as low as £1 plus taxes.

Passenger groups fear travellers will increasingly be hit with extra charges - such as paying for luggage, paying to check-in, paying for seat reservations and paying for in-flight meals, as is already happening on some airlines.

For millions of Britons, it could spell the end of popular cheap weekend city breaks to places such as Barcelona, Prague or Turin.

Asked if the market of 'crazy' £35 ticket prices for weekend breaks was coming to an end, Mr Walsh said: 'My view is yes. I don't think the industry can absorb the significant increases (in fuel costs). The industry has no future if it doesn't price in its costs. This is about survival.

'The era of very low fares is behind us. It is clear that there are many airlines out there which are struggling today to survive.'

Speaking in Houston, Texas, the BA chief executive said a lot of airlines would ground planes and axe services.

'We are going to see more airlines fail and that will take capacity out,' he said. 'I think at some point demand will be affected by the increased prices.'

As if to underline the deepening crisis, shares in British-based business airline Silverjet were suspended yesterday as a promised £12million cash bailout stalled.

Business class only airlines Maxjet and EOS have already gone bust, along with London to Hong Kong budget carrier Oasis.

Mr Walsh has confirmed that as well as raising its fares, BA will cut thousands of flights this winter as it drops less profitable routes. He also declined to rule out an increase in fuel surcharges.

'It could be (a rise in fares), it could be surcharges or it could be a combination of both,' he said.

His comments came as the price of crude oil this week reached a new record high above $135 a barrel.

Motorists are being hit with record prices at the pumps and fuel protesters plan action in London on Tuesday.

The soaring oil price raised the prospect of a £700-a-year rise in fuel bills for the average family.

The Government has admitted that Britain is in the grip of an economic crisis. Trade minister Baroness Vadera said on Thursday that the nation is facing a 'very testing period'.

Business leaders warned that companies are being pushed 'to the absolute edge'.

BA last week unveiled record annual profits of £883million, but analysts warned that the soaring cost of fuel could wipe out profits this year. Its fuel bill topped

£2.1billion last year and is likely to hit £3billion this year - accounting for more than a

quarter of its total costs.

Earlier this month, BA boosted its fuel surcharges. The highest rise of £30, applying to long-haul flights of more than nine hours, rocketed from £128 to £158 for a return trip.

Mr Walsh said families will also be hit hard when the Government introduces its controversial new cash-raising 'green' tax on airline flights from November next year.

He said it will add £500 to a family holiday, but is designed to swell Treasury coffers rather than save the planet.

American Airlines is to be the first major scheduled airline to charge passengers for baggage. It is imposing a £7.50 each-way charge for the first item and £12.50 each way for a second, with a third bag possibly costing £50 on domestic U.S. routes.

Daily Mail 24-05-08