hi ive just come back and can say the prices have increased slightly from march, i would hope they will lower there prices but cant see it happening as they are not getting the tourists because of the exchange rate, but fingers crossed though.

The British with their weak pound make up only a percentage of the holidaymakers to the islands, so the poor Pound to Euro exchange rate (poor from our perspective that is!) is of little relevence to the restauranteurs/hotel owners. What is more important is the general malaise caused by the financial turmoil across the world as this impacts the Germans/French etc as much as us - not to mention the Spanish.
Looking around at home, I see no evidence of restauranteurs lowering prices. Any drop in hotel prices will simply benefit the pockets of the tour operators as, in the current climate of reduced holiday availability and airline seats (following the collapse of several airlines so far this year), the TOs are not offering much in the way of discounts either.

If your worry is the Pound/Euro exchange rate, then you will certainly get more "bang for your buck" by holidaying outside Euroland - Egypt and Turkey spring to mind.

Cheers,
Jet

I see what your saying Jet but i would of thought the UK would have brought quite a few more then just a percentage, like you say other places are offering better deals to Spain etc at the moment is a no no.

In my own 2 bedroom apartment which i rent out. I have just been told that the management fees are going up which means i have to pass on to the holidaymaker almost £20 per week to rent it out.
Still,the new rate of £270/£320 per week for a 2 bedroom 2 bathroom is still a fantastic rate compared with similar prices in the uk for a weeks break

The accommodation I rent every year has also went up a bit in price,they have also doubled the deposit as they have had many cancellations due to the credit crunch!

My parents are out there now, and a restaurant that has been there for years is struggling becuase people can't afford it as much now.
My dad says there is a noticble price increase.

I used to have a large coke in santiago 5 cafe which was like 5 euros, now we're talking £5. its ridiculous. There is obviously an impact at the moment, but only until things improve, which they will eventually.