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For the first time in five years, Portugal's Algarve tops the Post Office Travel Money barometer chart as the cheapest destination for UK tourists. With prices down more than 18 per cent year-on-year, the Algarve is one of eight European destinations in the best-value top ten for the second year running.
The travel money barometer is based on the costs of eight tourist staples – including dinner for two, drinks and suncream. The Algarve comes out as the bargain destination with a total cost of £29.32 for the eight items.
With a similar fall in prices this year, the Bulgarian resort of Sunny Beach comes second – its basket of goods costs £29.49.
Good deal: Prices in Cape Town – one of only two long-haul destinations to make the leading ten destinations – are down 20 per cent
By contrast, some local shop and b ar prices have risen on Spain's Costa del Sol, so the gap between fourth-placed Spain and the two chart-toppers has widened to over £6 from just £1 last year. Prices in Cape Town – one of only two long-haul destinations to make the leading ten destinations – are down 20 per cent, giving it a total of £34.55.
As a result of the great strides made by sterling against the rand in recent months, the city has powered past Bali to make it the lowest-priced of 32 long-haul destinations surveyed, and third cheapest overall.
With sterling now worth 28 per cent more than a year ago, equating to £140 extra cash on a £500 currency purchase, Post Office Travel Money has chosen South Africa for its 2016 hotlist.
Prague, last year's best-value destination, has tumbled to seventh place on the list. Rising meal costs have made the Czech capital almost 14 per cent more expensive year-on-year. Meanwhile, Budapest is almost four per cent cheaper than a year ago – helping it to rise to sixth place in the table with a holiday costs total of £39.40.
Rising meal costs have made Prague almost 14 per cent more expensive year-on-year
Three East ern Mediterranean resorts – Marmaris, Paphos and Corfu – fill the remaining Top 10 places. Corfu is a new entry, rising to 10th place from 14th last year on the strength of lower meal prices, which have helped to make the Greek island more than 19 per cent cheaper than a year ago.
News for transatlantic travellers is less rosy, mainly because the dollar has been getting stronger against the pound, which has had a negative impact on the prices British tourists will pay in the US.
Orlando again emerges as best value, although prices are up almost nine per cent. Boston was the least expensive of the US city-break destinations surveyed.
UK tourists travelling to most Caribbean islands also face rises because their currencies float alongside the dollar and have strengthened to a similar degree.
Prices surveyed by the Post Office are highest in Dubai, whi le two of the most popular Caribbean islands, Antigua and Barbados, have also recorded big price rises.
Destinations offering better value for money this year include Australia, Vietnam, Japan and Peru, whose currencies have lost ground against sterling. Sterling has risen in value by more than a third against the Australian dollar over the past five years. One currency with fast-growing sales with Post Office customers is Costa Rica's colón, while Iceland's krona is also showing rapid growth.
Source: The price is right in the Algarve - but you'll pay top dollar in the US: Post Office's cheapest tourist destinations for UK holidaymakers revealed
FOR American travelers, one of the biggest expenses of any trip to Africa, whether a South African safari or a beach holiday in the Seychelles, is simply getting there. During high season most flights cost $2,000 or more round trip — in coach — and require stopping or changing planes. And while a few airlines, like Delta and South African Airways, have been adding more convenient routes, fares have continued to rise.