Corfu continues to emerge as the most value for money Greek destination for British travellers, despite the fact that overall spending on meals, drinks and other essentials has increased this year compared to last year.
In particular, according to the findings of the 18th annual Post Office Travel Money report, Corfu is rated as the best-priced Greek destination, ranking 19th in the ranking, with the cost of meals, drinks and other essentials used by Brits on holiday rising to £92.05 (up from £81.35 in 2023, when Corfu was ranked 13th).
Sterling’s momentum enables British holidaymakers to pay less for their holidays in 25 out of 40 tourist destinations, according to Post Office Travel Money.
According to the report, local prices for a range of items used by British travellers have risen over the past 12 months in four-fifths of destinations, but the impact of this has been largely negated as 90% of the best-selling foreign currencies have weakened against sterling.
The study looked at the cost of eight typical tourist items and found that Hoi An in Vietnam was the cheapest place to visit, with prices for UK tourists falling by 14.4% compared to last year. A three-course dinner for two with a bottle of house wine there will cost you just £39.20.
Cape Town in South Africa emerged as the second lowest priced destination, although local costs have increased by 5%, followed by Mombasa in Kenya, Tokyo in Japan and Algarve in Portugal.
In particular, at £54.35, the South African city is second in this year’s cost comparison, just ahead of Mombasa (£54.93), where costs have fallen by 7%.
Tokyo moved up four places to become the fourth most affordable proposition, with the cost of basic food items falling by 16.2% to £59.05.
Although British holidaymakers still rate Spain as the most economical destination, the country is not in the top ten and has dropped to 14th place after recording a 9.3% price increase this year to £81.45.
Portugal’s Algarve is the most economical of the 15 European destinations surveyed, with prices falling by 1.2% to £59.69, overtaking Turkey and Bulgaria, where price rises saw Marmarida and Sunny Beach fall from last year’s top three places to seventh and ninth respectively.
Despite the downward trend of the Turkish lira, local prices in restaurants and bars in Marmarida have more than doubled as owners try to overcome the challenge of inflationary price increases.
Even after the application of the favourable sterling exchange rate, the cost of the 8 basic items has increased by 14% to £66.07.
Similarly, prices have risen by 6.4% to 62.49 pounds at Sunny Beach in Bulgaria, once Europe’s bargain destination.
Cyprus is the fourth European destination in the top 10 with the best prices. With the cost of basic items standing at £73.32, Paphos takes tenth place as a result of a 6.8% drop in costs – the biggest price drop in Europe after Budapest, where prices fell by 10.7% to £90.41.
Bali and Egypt complete the top 10 destinations. Prices in Kuta fell 6.7% to £63.31, while costs in Sharm el-Sheikh fell 17.6% to £61.37 as a result of the devaluation of the Egyptian pound in early March.
At the other end of the scale, the most expensive location analysed was Costa Rica’s Tamarindo, at a cost of £158, following a 13.2% year-on-year increase. The same is true of Cancun, Mexico, which was once in the top 10 best priced, but has now dropped to 33rd place after a 16.7% increase in price to £127.10, mainly due to the strengthening of the Mexican peso.
Important findings
Half of Britons (51%) plan to travel abroad this year despite concerns about holiday costs, rising to 58% of younger people aged 16 to 34, according to new research.
Three in five (60%) have already booked their holidays – although almost a quarter (23%) are waiting to book in the hope of securing a discount package late, according to the Post Office Travel Money survey.
The survey confirms that holidays abroad are a priority for many Brits.
But half (51%) of those planning trips abroad admit they will have to take some of their savings to fund their trip abroad.
A quarter will reduce spending in other areas to cover holiday costs, while 12% will delay plans to improve the home or buy a car.
Prices in resorts and cities are one of the biggest concerns for holidaymakers planning trips abroad.
The consumer survey found that 84% – rising to 89% of family travellers – said the cost of items such as meals and drinks would be one of their major considerations when choosing a holiday destination.
And 90% of those planning a holiday abroad are concerned about going over budget.
The consumer survey found that 84% – rising to 89% of travellers travelling with their family – said that the cost of items such as meals and drinks would be one of the most important criteria when choosing their holiday destination.
And 90% of those planning a holiday abroad are concerned about going over budget.
