Revealed: the winter sun destinations offering best value: Prices down in Thailand, Dubai, Vietnam, Brazil and Jamaica

• Research reveals that many Britons considering trips abroad will cut their spending budget or choose a cheaper destination in view of sterling’s volatility
• Prices have risen in 80 per cent of destinations surveyed for the Post Office Long Haul Holiday Report since the last report in 2019 (www.postoffice.co.uk/longhaul)
• But they have fallen by 20 per cent in Phuket, Thailand and by 10 per cent in Vietnam, which takes top spot in the barometer chart for the first time

Sterling’s recent slide in value means holidaymakers planning winter sun trips to 80 per cent of the 28 destinations surveyed for the Post Office Travel Money Long Haul Holiday Report¹, produced in partnership with holiday firm Travelbag, will have to pay more than in 2019 when the last report was published before the start of the Covid-19 pandemic. However, while the report found rises of over 20 per cent in 14 destinations², it also found sizeable falls in popular resorts in Thailand, Dubai, Brazil, Jamaica and Vietnam, which tops the best value table for the first time.

The report is published at a time when holidaymakers taking trips abroad may be reviewing their plans, according to consumer research conducted for Post Office by YouGov³. Nearly three-in-five (59 per cent) of UK adults who said they were considering a holiday abroad admitted that their plans were likely to be impacted by sterling’s volatility. Although only a quarter of these said they would not take a holiday at all, 25 per cent said they would choose a cheaper destination, 28 per cent will delay their trip and a third (33 per cent) intend to cut their spending budget.

With value for money top of the agenda for Britons planning holidays, a fall in the cost of 10 tourist staples⁴ researched by tailor-made holiday specialist Travelbag, and cross-referenced with those provided by its tourist office, means Hoi An, Vietnam is likely to be a leading contender. Although sterling has dropped in value against the Vietnamese dong, a sharp fall in local prices means costs for British visitors are down 10 per cent to £68. As a result, Hoi An has risen from fourth place in 2019 to top the barometer chart now.

Prices are also down in three new entrants to the top ten: Phuket, Thailand (up to 6^th from 18^th in 2019); Rio, Brazil (up to 7^thfrom 13^th) and Montego Bay, Jamaica (up to 8^th from 15^th). At £94 prices in Phuket have plummeted by 20 per cent, due to a combination of local price falls and a nine per cent drop in the Thai baht’s value against sterling. The same is true of Rio, where prices are down over six per cent to £102 after an 11 per cent fall in the value of the Brazilian real, and Montego Bay, where the barometer basket costs £111, six per cent less than in 2019, due to a lower local prices.

Nick Boden, Head of Post Office Travel Money, which accounts for one-in-four UK foreign exchange transactions, said: “With continuing uncertainty about sterling, it is more important than ever before for people planning winter sun holidays to do their homework and be aware of prices in destinations they are considering. Holiday costs remain low in popular long haul resorts like Vietnam, Thailand and Jamaica but people who choose the wrong destination risk falling victim to higher prices.”

Barometer costs have also fallen by almost 10 per cent to £136 in Jumeirah, Dubai enabling the mid-haul resort to rise 11 places up the table to 16^th, its highest ever position.

Elsewhere in the best value top 10, two African destinations – South Africa and Kenya – complete this year’s top three. Cape Town (£68) was narrowly beaten by Vietnam but retains its runner-up position in the report, while Mombasa, Kenya has risen two places to take third place at £77.

Japan (£82) and Bali (£82) complete the top five destinations, but both have dropped positions – capital city Tokyo from the top spot to fourth this year and Kuta, Bali from third to fifth place – after recording significant price rises. Barometer costs rose by 15 per cent in Bali and by 38 per cent in Tokyo, despite a 16 per cent fall in the value of the Japanese yen against sterling since October 2019.

By comparison to Jamaica, the lowest-priced of eight Caribbean and Central American destinations surveyed, barometer costs have risen in all seven of the others. At £239, prices increased by 34 per cent in Bridgetown to make Barbados the most expensive of 28 destinations surveyed for the Post Office report and over twice the price of Montego Bay. The biggest increase of over 55 per cent was recorded in Antigua, where the barometer basket in its capital St John’s rose to £179. Cancun, Mexico (£115, 11^th) and Punta Cana in the Dominican Republic (£118, 12^th) look relatively good value for money, although prices have risen by 43 per cent in Cancun in the past three years.

In the USA, Orlando (£112, 9^th) has retained its top 10 place despite a 29 per cent rise on 2019 price levels, an increase compounded by the growing strength of the US dollar. By comparison, the same items cost 50 per cent more in New York (£169, 24^th).

Further afield in the Indian Ocean, Travelbag researchers found that barometer costs in Grand Baie, Mauritius (£122, 13^th) are almost half those in the Seychelles (£235, 27^th) where prices in Mahé have risen by around 25 per cent since 2019.

Lesley Rollo, Managing Director, Travelbag, commented: “What this report shows once again is the importance of doing your research before you book, and speaking to travel experts with on-the-ground visibility of what’s happening in your chosen destination. Our teams speak regularly with their contacts across the world in the destinations featured in this report and are well placed to make the decision of would-be travellers about where to go much easier.”

Post Office Travel Money acknowledges that prices are likely to change in the coming weeks as a result of the volatility of the UK pound and advises careful budgeting so that Britons avoid running out of cash while abroad.

Nick Boden said: “We advise people planning long haul trips to watch exchange rate movements in the weeks before their departure and purchase their holiday money when the pound rises in value. Our research shows that prices are higher in many destinations than in Europe. Holidaymakers who budget carefully to allow for this will benefit from the improved rates offered on higher value currency transactions in our branches or online rather than leaving it to the last minute and getting less cash for their pounds in airport bureaux.”

Ends

The full results of the 2022 Post Office Travel Money Long Haul Holiday Report, produced in partnership with Travelbag can be viewed online at www.postoffice.co.uk/longhaul

Notes to Editors:

Post Office is the UK’s leading foreign currency provider, offering around 60 currencies for pre-order at around 7,000 branches or online at www.postoffice.co.uk/travel for next day collection at any branch or home delivery. 3,500 larger Post Office branches stock the leading currencies and around 4,300 offer US dollars over the counter without the need to pre-order. US dollars and euros can also be ordered online for same day ‘click and collect’ at selected branches.

Travelbag (www.travelbag.co.uk) specialises in creating tailor-made holidays to a range of worldwide destinations that can be booked either online, over the telephone or in one of its six UK shops (Central London, Cheltenham, Chester, Knutsford, Solihull and Winchester).

¹ The Post Office Long Haul Report barometer table is compiled from a combination of data supplied by the long haul specialist Travelbag cross-referenced with prices provided by national or regional tourist offices of participating countries. Resorts featured are chosen as representative of the prices that UK holidaymakers will generally find in the country/destination. Random online checks were made to authenticate these prices. Exchange rates used are Post Office internet rates for exchange of £500-£999. Prices quoted are rounded up or down to the nearest pound.

² Barometer price increases in excess of 20 per cent compared with 2019:

1. Antigua: St John’s 55.3%
2. Mexico: Cancun 42.6%
3. Chile: Santiago 41.5%
4. Tobago: Scarborough 38.4%
5. Japan: Tokyo 38.1%
6. Barbados: Bridgetown 33.7%
7. USA: Orlando, Florida 28.8%
8. Canada: Vancouver 28.4%
9. Malaysia: Penang 25.8%
10. St Lucia: Rodney Bay 25.4%
11. Singapore: Chinatown 25.0%
12. Seychelles: Mahé 24.9%
13. USA: New York 24.4%
14. Costa Rica: Tamarindo 21.1%

³ 59 per cent of those who are considering an overseas holiday say their plans are likely to be impacted by the volatility of sterling. Amongst these people, 25 per cent said they would not take a holiday at all, 25 per cent will pick a cheaper destination, 28 per cent will delay their trip and 33 per cent will cut their spending budget. All figures quoted are from YouGov Plc.

The total sample size was 2081 adults. 1283 of those adults said they were considering a holiday abroad, of which 754 say their holiday plans are likely to be affected by volatility of the UK pound. Fieldwork was undertaken between 29^th-30^thSeptember 2022. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).

⁴ The 10 items surveyed by Travelbag and Post Office Travel Money are a cup of filter coffee, 330ml bottle of local lager, 330 ml bottle of Coca-Cola, 175ml glass of wine, cocktail, small chocolate bar, 1.5 litre bottle of supermarket mineral water, 200ml bottle of suncream, 50ml tube/bottle of insect repellent, three-course evening meal for two adults including a bottle of house wine.