you can change you code a bit :
$taxonomy = 'country';
$terms=get_the_terms($post->ID,$taxonomy);
if($terms) {
echo '<h1>Holiday ';
$total_count = count($terms);
$country_count = 1;
foreach( $terms as $termcountry ) {
if ($country_count = 1){
echo 'in '.$termcountry->name;
}else{
if ($total_count = 2){
echo ' And '.$termcountry->name;
}else{
echo ', '.$termcountry->name;
}
}
$country_count = $country_count + 1 ;
}
echo '</h1>';
}
This will output in case of one term:
<h1>Holiday in Spain</h1>
in case of two terms:
<h1>Holiday in Spain And Japan</h1>
and in case of more then two terms:
<h1>Holiday in Spain, Japan, England</h1>
hope this helps