Are European holidays still a dream for South Africans despite a stronger rand?
A trip to Barcelona will cost at least R2 000 a day, even though the rand is stronger.
Image: Nicola Mawson | IOL
While the rand has shown some mild strength against the euro and pound in recent weeks, holidays to Europe remain far beyond the reach of most South Africans.
A trip to Spain will set a traveller back around €100 or R2,006 per day for a budget holiday, or up to R4,816 for a mid-range experience.
Six months ago, the weaker rand meant a similar trip would have cost about R217 more per day.
The UK is even pricier. Visitors can expect to spend between £200 and £300 daily, depending on whether they’re travelling on a budget or splurging a little.
With the rand currently trading at R23.16 to the pound — its strongest level in six months — that translates to a daily spend of between R4,632 and almost R7,000. Half a year ago, that same trip would have been between R5,000 and R7,500, a roughly 7% decrease.
Yet, these small currency gains make little difference to affordability when measured against local earnings.
The average South African netted R21,222 in August, according to the PayInc Net Salary Index.
That’s just 0.2% higher than July and 2% more than a year ago — barely enough to cover a few days in London or Barcelona, never mind flights, visas or accommodation.
“The upward trend evident in net salaries during 2024 spilled over to 2025, with the average nominal net salary in the first eight months of 2025 up by 4.6% compared to the corresponding period in 2024,” PayInc said.
Investec chief economist Annabel Bishop said the rand’s movements against major currencies have been mixed this year.
“The rand has seen some mild strength against the euro and the pound recently, but continues to strengthen against the US dollar only due to the US dollar’s weakness this year, as the greenback has depreciated substantially over 2025,” she said.
“Indeed, while the rand has strengthened against the US dollar, this has been entirely due to the US dollar’s weakness on the translation effect, as the US dollar has weakened this year by more than the rand has strengthened against it.
"The US dollar’s movements are key for the rand, while a number of the other major currencies have also seen notable movements, with the rand 3.3% weaker against the euro year to date as the euro has seen some gains on its own over 2025," she said.
For most South Africans, though, the stronger rand offers little relief. Even a budget European holiday now costs more than a worker’s entire monthly pay — making it a dream that remains firmly out of financial reach.
IOL Business