British Pound Big Apple's Bargains

For British tourists heading to the Big Apple to takeWith sterling at its strongest versus the dollar in 26
advantage of a weak dollar and stock up on bargains,years, a rule of thumb for British shoppers is to halve
the choice is clear: saving money comes beforethe dollar price of goods to get their cost in pounds.
saving the planet.This emphasizes how dramatically cheaper US goods
With sterling hitting its highest levels against the dollarseem. Add in the cost of a flight and hotel at peak
since 1981, British media are cranking up headlines onseason, however, and the cost spikes.
the number of people jetting to the United States toIn New York, a shopper could pick up an Omega
pick up bargain designer clothes and electrical goods.men's watch, a pair of Timberland boots, a pair of
"The weak dollar is certainly helping a few shoppersRay-Ban Wayfarer sunglasses and a bottle of Chanel
find their way to the US," George Stinnes, head ofNo. 5 perfume for about $3,750 (1,830 sterling) - about
investor relations at British Airways, said earlier this20 percent less than they would cost at home.
month when the company reported passengerAdd to that the typical cost of the flight and a
numbers on routes to the Americas had jumped 7.4weekend in a Manhattan hotel - charging premium
percent in October from a year ago.rates in the run-up to Christmas - and the total is 2,850
Those who have witnessed the sharp-elbowed frenzypounds ($5,890), adding roughly 1,000 pounds ($2066.
of retailer Harrods' sales may not be surprised to learn"In the four days I'm here I'll spend about $900 and
that for some shoppers, the lure of cheap trendy Uggthere is no way I would spend that in four days in
boots and iPods outweighs the 2,000 kg or so ofLondon," TV producer Catherine Mark said by
carbon dioxide the return flight pumps into thetelephone from New York. "I'm not really that bothered
atmosphere.about the shopping, it's just exciting being here."
The transatlantic bargain-hunting contributes to Britain'sOn top of travel costs, returning Britons face a limit of
status as the eighth-largest emitter of carbon dioxide in145 pounds ($298) in the value of goods imported,
the world, according to US Department of Energyafter which they must pay 20 percent tax. Attempted
figures.evasion - or ignorance of the limit - is penalised by
"It's business travelers who should worry about carbondoubling the tax.
emissions," said Martin Smithers-Brown from London,Even if more shoppers are heading to the United
checking in for a flight to New York at HeathrowStates, Britain's Revenue and Customs office (HMRC)
airport for a four-day shopping trip with his wife andsays it has not seen an increase in goods brought
two friends.back, adding that it targets mainly large-scale multiple
He said he planned to pick up electrical goods such aspurchases.
iPods and cameras, while his wife Krista had her eye"We thought we might get some increased activity, but
on brand-name clothes.in actual fact people seem to be quite well aware of
"You can't beat the dollar at the moment," she said. "It'stheir spending and ... we haven't seen an increase in
always cheaper over there. Two years ago I wasgoods coming in," said Mike Burrell, spokesman for
paying 20 pounds for a pair of Levis there. Now it'sHMRC.
even cheaper."Some shoppers say they unpack US purchases
The shoppers are crossing the Atlantic as concerns atimmediately, and work them to make them look 'used'
home mount about the scale of fallout from the USbefore flying home.
credit crunch and British retail is nervous: retail sales fellThe bargain-hunt can go beyond consumer goods.
in October for the first time since January.Travelex, a London-based currency exchange
"It's really good value - you have to really controlcompany, said dollar purchases in Britain had risen by
yourself because the pound is so strong against the40 percent since the pound began to hit new highs -
dollar," said Londoner Rhoda Ogan, visiting New Yorkpartly on demand for shopping, but also on a gamble
to see a friend.that the greenback itself may, at current levels, be a
But if travel is included, Britons who ignore their carbonsteal.
footprint as they leap aboard transatlantic flights to bag"We're ... seeing that customers are taking advantage
cheap luxuries may well end up spending more thanof the current rate by actually stockpiling US dollars,"
they would at home.Antony Hudson, its UK retail director, said.
False economy?"Those travelers actually visiting the States are
Many major currencies have boomed against a dollarchanging up much more than they need so they have
weakened by investor fears about the health of thea surplus to draw on for a future trip, or others are
US economy - particularly after banks announced overactually changing up money now in anticipation of a
$50 billion of write-downs on assets linked to theholiday in the future.
troubled housing sector.