The best-value overseas destinations for Aussie travellers thanks to our stronger dollar

In a time when everything seems expensive, there is a silver lining for travellers: the Aussie dollar is holding up remarkably well, making some countries more affordable than ever.

Take New Zealand for example. Though the flights are relatively affordable because of the short distance, it's traditionally been one of the more expensive holidays for Aussies to take due to food and accommodation costs at the destination.

But not any more: New Zealand is now one of the cheapest places for Aussies to holiday, among a handful of other standout countries.

Here are the places where the Australian dollar is buying more than travellers might expect, and where your hard-earned cash might even stretch further than it does at home - meaning more margaritas, massages and memories all around.

The value of the Aussie dollar has been steadily rising for most of the year across a range of currencies, according to senior lecturer Dr Luke Hartigan from the School of Economics at the University of Sydney.

"The increase has been partly due to the five interest rate increases by the RBA over this time. In contrast, the central banks in other countries have not lifted their interest rates as quickly," Hartigan tells Explore.

Right now, the Australian dollar is stronger against the Japanese yen, and the New Zealand and Canadian dollars, and is a little stronger against the euro, UK pound and US dollar, he says.

And a strong Aussie dollar means Aussies travelling overseas will find their dollars will go a bit further than before.

"It will give them increased purchasing power so that the cost of the holiday will be less than it would have been if the Aussie dollar had not increased," Hartigan says.

Daniel Gschwind, professor of practice at the Griffith Institute for Tourism at Griffith University, says the Australian dollar has undergone a "remarkable appreciation" against the Japanese yen over recent years.

"It has contributed to the number of Australians travelling to Japan doubling since pre-COVID to nearly one million [annually]," Gschwind tells Explore.

"It has evolved into one of the most popular all-year destinations for Aussies, with a very high perceived value-for-money reputation, despite a slight decline in the value of the Australian dollar in the last few months."

Indonesia, Australia's favourite overseas destination, has also delivered a "currency bonus" for Aussies this year, with our dollar appreciating by about 15 per cent against the Indonesian rupiah, Gschwind says.

For those travelling to New Zealand, the Aussie dollar now buys almost 10 per cent more New Zealand dollars than at the beginning of the year, he says.

And a similar story is playing out in Europe. "The Euro is currently about 10 per cent more affordable in Aussie dollar terms than at the beginning of the year, luring more travellers to the traditionally higher-cost destination," Gschwind says.

Alexandre Jeanneret, professor of finance at the UNSW Business School, says Vietnam, India and the Philippines also provide strong value for Australians right now.

Though the exchange rate is an important consideration for many Australians planning an overseas holiday, the total cost of the holiday needs to be taken into account before deciding whether it's "cheap".

Jeanneret says a useful approach is to estimate the cost of accommodation, meals, local transport and activities in Australian dollars for each destination.

"Indonesia, India, the Philippines, Vietnam and Japan currently offer an attractive combination of currency movements and local prices," he says.

"Airfares also matter, particularly for a shorter holiday, and can outweigh the savings from a favourable exchange rate. Booking major expenses in advance can reduce exposure to subsequent currency movements."

He also advises travellers should use a card with low foreign exchange fees and always choose to pay in the local currency rather than accepting a merchant's conversion into Australian dollars.

"Travelling outside peak periods can often produce a larger saving than waiting for a slightly better exchange rate," Jeanneret says.