Revealed: the best value destinations worldwide for 2024

• Long haul destinations top this year’s holiday costs barometer leaderboard: Vietnam, South Africa and Kenya offer the lowest prices
• Portugal is the only European destination in the top five as Turkey and Bulgaria lose ground
• Sterling’s surge accounts for price falls in 25 of 40 resorts and cities surveyed.
• Over half of Britons will travel abroad this year – and 60 per cent have already booked
• More than half will dip into savings to fund the trip despite concerns about overspending

Sterling looks set to play a pivotal part in holiday choice in the coming months, according to the 18^th annual Holiday Money Report from Post Office Travel Money. The report reveals that 90 per cent of the Post Office’s 30 bestselling currencies are currently weaker against sterling than a year ago, resulting in price falls in many of the world’s most popular destinations – especially long haul resorts and cities.

Research for the Post Office Worldwide Holiday Costs Barometer, which is published within the report, has found that prices for meals, drinks and other tourist items have fallen since last year in 25 of the 40 resorts and cities surveyed. But it is the strength of sterling rather than prices charged in restaurants, bars and shops abroad that will make many destinations cheaper for British visitors.

The barometer research reveals year-on-year local price rises for tourist commodities in four out of five destinations. However, once these prices are converted to sterling, holidaymakers can expect to pay less than a year ago when visiting 19 long haul destinations and six European ones. The price falls apply to seven of the 10 destinations offering British tourists the lowest prices.

Topping the chart for the first time is Vietnam, where a 14.4 per cent price fall in Hoi An has been achieved through a combination of lower charges in restaurants and bars and a sizeable drop in the value of the Vietnamese dong. At £51.18 for a barometer basket consisting of a range of drinks, a three-course meal for two with wine, sunscreen and insect repellent, Hoi An has leapfrogged last year’s leaders to rise from sixth to first place in the worldwide barometer. It has done so because it is one of only eight destinations to combine a reduction in local prices with falling currency values.

By contrast, local costs have risen in Cape Town, last year’s barometer leader, and, even though sterling has surged in value against the rand, prices have increased by nearly five per cent as a result. At £54.35, Cape Town is the runner up in this year’s cost comparison, just ahead of third-placed Kenya (£54.93), where costs in Mombasa have fallen by seven per cent.

In common with Vietnam, Japan is another Far Eastern destination to benefit from a significant rise in sterling’s value combined with a fall in local prices. Tokyo has moved up four places into fourth position after seeing barometer costs plummet by 16.2 per cent to £59.05.

Although British holidaymakers continue to rate Spain as the best value destination according to consumer research conducted for the Holiday Money Report, it does not feature in the top 10 and has fallen to 14^th place after recording a 9.3 per cent price rise this year to £81.45. Instead, Portugal’s Algarve is the highest placed of 15 European destinations surveyed, holding on to fifth place with a 1.2 per cent drop in prices to £59.69. In doing so, it has overtaken Turkey and Bulgaria, where price rises have seen Marmaris and Sunny Beach fall from last year’s top three to seventh and ninth places respectively.

Despite the downward spiral of the Turkish lira, local prices in Marmaris restaurants and bars have more than doubled as owners try to overcome the challenge of inflationary price rises. Even after applying the favourable sterling exchange rate, barometer costs have risen 14 per cent to £66.07. In Sunny Beach, Bulgaria (£62.49), once Europe’s bargain destination, prices are up 6.4 per cent.

Cyprus is the fourth European destination in the best value top 10 and the only new entrant. At £73.32, Paphos takes tenth place as a result of a 6.8 per cent drop in barometer costs - the biggest price fall in Europe after Budapest, Hungary, where prices are down 10.7 per cent to £90.41.

Bali and Egypt complete the top 10 destinations. In eighth place, prices in Kuta are down 6.7 per cent to £63.31, while Sharm el-Sheikh has moved up to sixth place as a result of the devaluation of the Egyptian pound in early March. At £61.37, prices have fallen by 17.6 per cent.

At the bottom of the barometer table, Tamarindo in Costa Rica is the most expensive destination. At £158, prices have risen significantly in recent years – up 13.2 per cent year-on-year - because of the growing strength of the Costa Rica colon. The same applies to Cancun, Mexico, once in the best value top 10 but now down to 33^rd place after a price rise of 16.7 per cent to £127.10, mostly due to the strength of the Mexican peso.

Prices in resorts and cities are one of the biggest concerns for holidaymakers planning trips abroad. In consumer research conducted for the Holiday Money Report, 84 per cent of them – rising to 89 per cent of family travellers said that costs for items like meals and drinks would be one of their biggest considerations when choosing their holiday destination. Even more, 90 per cent of Britons planning overseas holidays were concerned about overspending their budget.

Laura Plunkett, Head of Post Office Travel Money, 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.”

Despite concerns about holiday costs, half (51 per cent) of Britons told Post Office researchers that they intend to travel abroad this year – rising to 58 per cent of younger people aged between 16 and 34. More revealingly, three-in-five (60 per cent) of them have already booked their holiday – although almost a quarter (23 per cent) are waiting to book in the hope of bagging a discounted late package.

The research confirms that holidays abroad are a priority for many Britons. Half (51 per cent) of those planning overseas travel admit that they will have to dip into savings in order to fund their trip abroad, while a quarter (25 per cent) will reduce spending on other areas to afford the holiday – 12 per cent delaying plans for home improvements or car purchase.

Ends