British holidaymakers will get the best value from the Portuguese Algarve for the second year in succession in 2017 above more than 40 other destinations, a new study claims.
Nine of the top ten best value destinations assessed by Post Office Travel Money were in Europe while Toyko was the top long-haul destination, followed by Cape Town in South Africa and Cancun in Mexico.
The most expensive destination surveyed was Dubai after Antigua, Washington DC, St Lucia and Jamaica.
The 2017 holiday costs barometer is based on the local bill for a basket of eight typical tourist staples, ranging from a meal out for two with wine to a bottle of beer and a cup of coffee.
While overall costs are higher worldwide than in 2016, prices for the eight items have fallen or stayed the same in 40% of the 44 destinations surveyed.
While the holiday money report acknowledges the impact of the weaker pound on holiday costs in the coming year compared with 2015 and 2016, it points out that sterling is actually stronger now than it was five years ago.
The cheapest for all items at £33.36 was the Algarve, just nudging Sunny Beach in Bulgaria (£33.53) into second place followed by the Costa del Sol (£38.79).
The collective cost for the same items in the Japanese capital was £58.47 while the cost in Dubai reached £221.11.
Tokyo now the cheapest of eight cities and resorts surveyed in Asia, with tourist staples costing 18% less than in Phuket (£71.39), 28% less than in Penang (£81.20) and 43% less than in Beijing (£102.84).
Among the six Caribbean islands surveyed, resort prices in Tobago (£90.74) and the Dominican Republic (£91.04) are much cheaper than in Barbados (£134.54), Jamaica (£144.74), St Lucia (£145.11) and Antigua (£164.48), which are among the survey’s seven most expensive destinations. Prices in English Harbour, Antigua are more than 81% higher than in Tobago’s resorts.
Andrew Brown of Post Office Travel Money said: “Holidaymakers can do little about sterling’s value but they can do their homework and plan trips to resorts or cities where prices for meals, drinks and other tourist staples are low.
“Europe is looking unbeatable value with nine of this year’s ten cheapest destinations, not to mention local price falls in half the European resorts and cities we surveyed.
“Further afield, Tokyo and Cancun are good bets for bargain hunters but don’t discount Cape Town or Bali. If the rand and rupiah fall in value, low costs on the ground could make these great choices too.”
He added: “This year’s report puts 2016’s sterling fall into perspective. The pound may be weaker than 12 months ago but if you compare today’s rates with those five years ago, sterling is stronger now against 60% of our 40 best-selling currencies.
“As many of these bestsellers also feature among our fastest growing currencies, it appears that holidaymakers are becoming more switched on to where they will get the best value and choosing resorts accordingly.”