The Algarve in Portugal has leap-frogged both Marmaris in Turkey and Sunny Beach in Bulgaria to become the short-haul destination offering UK holidaymakers the best value for money this summer.
A new Holiday Money Report from Post Office Travel Money revealed that prices in the Algarve have dipped a little over 1% since last year while they have risen 14% in Marmaris and 6% in Sunny Beach.
Spain is also more expensive this year, up by 9.3% over 2023, making the popular Costa del Sol only 14th on the Post Office Travel Money list of most affordable destinations.
While visitors should expect to spend £59 in the Algarve on a sample basket including bottled water, cola, sunscreen, insect repellent and a three-course meal for two with wine, they’ll have to shell out £89 in the Costa del Sol, it said.
However, researchers for the Post Office Worldwide Holidays Costs Barometer found that British holidaymakers will spend less this year on essentials such as food and drink in 19 long-haul and six European destinations.
It said this was due to the fact that the pound was stronger in 90% of the Post Office’s 30 best-selling currencies compared with last year.
It found that the cheapest destination worldwide is Vietnam’s Ho Chi Minh City, where a 14% drop in prices has pushed South Africa’s Cape Town into second place.
The third most affordable destination is Mombasa in Kenya, followed by Tokyo in Japan in fourth place, with the Algarve in fifth place overall.
Sharm-el-Sheikh in Egypt has moved up to sixth place in the chart as a result of a devaluation of the Egyptian pound, which has pushed the cost of a basket of goods down 17% to £61.37.
Sunny Beach in Bulgaria is now the seventh cheapest place to holiday, followed by Kuta in Bali, Marmaris and Paphos in Cyprus, which has entered the top 10 for the first time following a 7% drop in prices, making it the fourth cheapest European destination.
Of other popular short-haul destinations, the Majorca in the Balearics is one of the most expensive, according to Post Office Travel Money.
Worldwide, Tamarindo in Costa Rica is the priciest place to holiday, following a 13% rise in prices, while Cancun in Mexico, where Advantage Travel Centres will hold its annual conference in May, has seen a 17%f increase in prices.
Head of Post Office Travel Money Laura Plunkett said: “The barometer results make it clear how important it will be this year to consider how sterling’s strength has impacted individual destinations. Holidaymakers intending to travel long haul can expect to get 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 to see which offer the cheapest prices. Portugal and Cyprus look the best choices for bargain hunters.”
