Prices in overseas resorts are down in almost three quarters (70%) of 44 key destinations due to increasing strength of sterling, according to a report today.
The Algarve in Portugal emerged as Europe’s cheapest destination, beating the Costa del Sol, with Bali offering the best value of all over Sri Lanka.
The biggest falls of 30%-32% were found in Jamaica, Japan and the Gambia, the eighth Post Office Travel Money Holiday Money Report reveals.
In its forecast of likely trends for 2014, the report tips Burma, Qatar and the Philippines as emerging destinations.
Vietnam is named as one of 10 ‘holiday hotspots’ for the third year, helped by direct flights from the UK, cheap resort prices and new boutique beach hotels.
A new Etihad Airways service to Saigon has also broadened the range of travel options for UK tourists.
South Africa is tipped to be popular as the country prepares to celebrate 20 years of democracy. Nelson Mandela’s death is also expected to renew interest in the country, while the rand’s continuing weakness against sterling will provide an added incentive.
UK tourists are currently getting almost 28% more rand for their pounds than a year ago, and prices down 17% year on year make Cape Town (£41.81) a top 10 value destination.
The calculations are based on a basket of typical costs in resort for eight items including a three-course meal for two with wine, a cup of coffee, a bottle of local beer, a can of Coca-Cola, a glass of wine, a bottle of still water, suncream and a packet of cigarettes.
Even though the pound is still weaker year on year against the euro (-1.9%), prices have slumped 18% in the Algarve, making it Europe’s cheapest destination for the first time since 2010 at just over £35 for the eight items.
Spain is the only eurozone country surveyed to register a significant price rise.
A 22% increase in meal costs on the Costa del Sol accounts for the overall rise in the price of eight typical tourist items to around £39.
However, Spain is in the minority because cheaper tourist meals account for lower prices found in most destinations.
The report found that eating out costs less now than a year ago in 30 of the resorts or cities surveyed.
Prices in Cyprus (Paphos), Greece (Corfu) and Italy (Sorrento) are also cheaper, although Italy remains most expensive in the eurozone – and in Europe overall – with the basket of items costing around £81, more than twice as much as either Spain or Portugal.
Croatia, Bulgaria and Turkey also emerge as having some of the best value resorts. At around £41 for the eight essentials, UK tourists will pay 19% less in Marmaris (Turkey) than a year ago.
Post Office head of travel Paul Havenhand said: “The fall in the value of the lira should make Marmaris and other Turkish resorts very attractive to bargain hunters. Not only have prices fallen this year but they are now 29% cheaper than two years ago.”
Turbulent times for Egypt may account for a 33% rise in prices reported in Sharm el-Sheikh.
But these remain 17% lower than in mid-haul competitor Dubai and can be expected to level off once visitors start to return to a destination known for value, the report says.
Orlando emerges as best value of four US destinations surveyed. Prices in San Francisco, New York and Washington D.C. are 21%-27% more expensive than in the theme park family favourite.
Havenhand added: “Holidaymakers will be spoilt for choice this year with better value-for-money in most destinations worldwide.
“To cash in on this, UK tourists should do their homework before booking to find out where the pound is worth most and where resort costs are low.”