Japan has been identified as an increasingly affordable option for travellers as it topped of a list of destinations which have seen the largest appreciation of the Australian dollar in the last year.
The 2013 Expedia NAB Foreign Exchange Index showed the Australian dollar had soared 15.52% against the Japanese yen over the last 12 months, improving the value offered by a destination long considered expensive by Aussies.
Ray Attrill, currency strategist at NAB, confirmed inflation rates had been taken into account when analysing the data.
"While Japan may still not be considered 'cheap', the exchange rate moves of the past year mean that in many respects, including eating out and drinking, the Australian dollar will now stretch further inside japan than it does at home," he said.
However, Attrill warned the Japanese yen is likely to experience a period of "relative stability" before it further weakens in 2014, by which time, the Australian dollar itself will be embarking on a "weakening trend".
Meanwhile, the index also showed the Aussie dollar rose 8.2% against the Brazilian real, 5.42% against the South African rand, 4.28% against the Indonesian rupiah and 2.53% against the Argentinian peso.
On the other hand, Hong Kong and China now appear more expensive than in previous years, although still offering above parity returns.
