If you like to travel on a budget, now might be a good time to set your sights out of the country, thanks to the strong U.S. dollar. As the dollar continues to gain traction against many of the world’s currencies, you can get more bang for your buck in many overseas destinations. Here are five places where your money may go the farthest, in alphabetical order. (For more, see Time Your Travel Abroad To The Exchange Rate.)
Australia
Round-trip airfare to Australia is expensive enough that your travel budget may be strained before you even reach the tarmac. The good news is that the U.S. dollar continues to strengthen against the Aussie one. In mid-2013 one U.S. dollar would have bought somewhere around one Aussie dollar; today it buys closer to $1.40 AUD. That means you might be able to hike the Outback, dominate the Sydney Harbor BridgeClimb (and take in a performance at the Sydney Opera House while you’re there), snorkel the Great Barrier Reef and go whitewater rafting in Tasmania – all without breaking the bank.
Canada
A few years ago the Canadian dollar – also known as the “loonie” – was stronger than the U.S. dollar. Since late 2011, however, its value has dropped steadily against the greenback, and today one U.S. dollar will buy you about $1.40 in Canada, the best exchange rate (for Americans) in more than a decade. Our neighbor to the north offers stunning scenery (think Banff National Park and the Yukon – one of the world’s best places to view the northern lights), cosmopolitan cities (Vancouver, Ottawa and Montreal, to name a few) and plenty of outdoor adventure, from world-class skiing to fishing, hiking and mountain biking.
Europe
Europe is the continent most visited by Americans – more than 11 million in 2015 alone, according to the Office of Travel and Tourism Industries. Whether you go to Europe to enjoy its scenery, rich history, food and wine, or some of the world’s finest collections of art, your dollar will go a lot further than it used to. In July 2008 one Euro would have cost you $1.60. Today it’s closer to $1.10. To really stretch your budget, consider traveling to one of the Eurozone’s less expensive countries, such Portugal and Slovakia – or a number of inexpensive countries that haven't adopted the Euro as their currency, including the Czech Republic, Hungary and Poland.
Japan
Japan has notoriously been a very expensive country for Americans to visit. That’s changed in recent months. A couple of years ago the exchange rate in Japan was 70 yen to the dollar, but today it’s about 118 yen to the dollar. Although Japan is still what many travelers would consider expensive, now might be a good time to go if it’s a country that’s always been on your bucket list. Plan on enjoying incredible scenery, natural hot springs (called “onsen”), artistic cuisine, traditional culture and 19 World Heritage Sites.
Russia
Russia is the world’s largest nation, and its landscape covers everything from tundra and dense forests to subtropical beaches. Known for its rich cultural heritage, impressive architecture and 26 UNESCO World Heritage Sites – including the Kremlin and Red Square in Moscow and the volcanoes of Kamchatka – Russia’s tourism industry has grown steadily since the collapse of the Soviet Union in 1991 (and since hosting the 2014 Olympic Games in Sochi). Favorable exchange rates make 2016 a good time to visit: Five years ago $1 would have bought about 29 Russian rubles; today it’s about 75 RUB per U.S. dollar. Parts of Russia are riskier for travel than some other countries listed above; click here for the latest from the U.S. State Dept.
The Bottom Line
A strong U.S. dollar probably won’t make your plane ticket any cheaper, but it will help you stretch your money further while traveling overseas. If one of these counties has been on your list of places to visit, now may be a good time to go. If you plan on traveling this year, make sure your passport is up to date. If you need a first-time passport or need to renew one, expect delays because a surge in the number of passport applications is expected in 2016. (For more, see Passport Renewal: Don’t Wait Too Long.)
Note: U.S. citizens traveling or residing abroad are encouraged to enroll in the Department of State’s Smart Traveler Enrollment Program (STEP), which provides security updates and makes it easier for the nearest U.S. embassy or consulate to contact you and/or your family in case of an emergency. You are also encouraged to check the U.S. Department of State’s travel warnings and alerts prior to and while you are traveling overseas.
