The most cost-effective holiday spots for Brits have been unveiled, with many popular destinations offering cheaper drinks and dining due to the strength of the pound. The Holiday Money Report from Post Office Travel Money reveals that 90% of the Post Office's top 30 currencies are weaker against sterling than they were a year ago, leading to price drops, particularly in long-haul locations and cities.
Vietnam, South Africa, and Portugal are among the prime destinations for British tourists. Despite local prices in bars, restaurants, and shops increasing year-on-year in four out of five destinations surveyed in the Post Office's Worldwide Holiday Costs Barometer, the robustness of the pound actually makes these places more affordable for Brits, as reported by Mirror Online.
UK holidaymakers can anticipate paying less than last year when visiting 19 long-haul and six European destinations. Vietnam tops the value-for-money list for the first time, with a 14.4% price drop in Hoi An due to reduced restaurant and bar charges and a decrease in the value of the Vietnamese dong.
The historic coastal town boasts the cheapest beer at £1.16 among the surveyed destinations, starkly contrasting with Dubai where beer costs £8.69, the highest in the survey.
Hoi An has jumped from sixth to first place in this year's cost comparison, with a barometer basket of drinks, a three-course meal for two with wine, sunscreen and insect repellent costing £51.18. This leapfrogging comes as local costs have risen in last year's leader, Cape Town, where prices have increased by 5% despite the sterling's surge against the rand, resulting in a total cost of £54.35.
Kenya follows closely behind at £54.93, with costs in Mombasa falling by 7%, offering the cheapest three-course meal at £34.64. Tokyo, Japan, has also seen a rise in the value of sterling combined with a drop in local prices, propelling it four places up to fourth position with costs dropping by 16.2% to £59.05.
Despite British holidaymakers rating Spain as the best value destination, it has slipped to 14th place following a 9.3% price increase to £81.45. Portugal's Algarve, on the other hand, holds fifth place among the 15 European destinations surveyed, with a slight 1.2% decrease in prices to £59.69.
It boasts the cheapest coffee at 88p and the cheapest wine at £1.76 per glass.
As a result, the Algarve has surpassed Turkey and Bulgaria, where price increases have caused Marmaris and Sunny Beach to drop from last year's top three to seventh and ninth places respectively.
Cyprus has made a notable entrance as the only newcomer to the top 10 best-value destinations, according to recent findings. With a significant price drop of 6.8% to £73.32, Paphos clinched the 10th spot, marking Europe's second-largest decrease after Budapest in Hungary, where costs plummeted by 10.7% to £90.41.
Meanwhile, Kuta in Bali sits in eighth position with a 6.7% reduction to £63.31.
At the other end of the spectrum, Tamarindo in Costa Rica emerged as the priciest location on the barometer table. A 13.2% annual inflation has pushed prices up to £158, attributed to the surging value of the Costa Rican colon.
The locality also lays claim to the most expensive three-course meals at £107.38 and the highest-priced sun cream at £23.55.
Similarly affected is Cancun, Mexico. Previously listed among the top 10 for best value, it has now fallen to 33rd place due to a 16.7% surge in expenses to £127.10, largely owing to the peso's rise.
Holidaymakers are expressing significant concern over the expense of overseas travel, with 84% citing the cost of dining and drinks as a primary consideration when selecting holiday spots. This number spikes to 89% amongst families.
Laura Plunkett, Head of Post Office Travel Money, commented on the outcome of the barometer study: "The barometer results make it clear how sterling's strength has impacted individual destinations. Long haul travellers can expect more for their money because the pound has gained ground in most destinations. By comparison, sterling's gain against the euro has been more modest so it will pay to compare eurozone destinations. Portugal and Cyprus look like the best choices for bargain hunters."
