As the country’s busiest region the Algarve came top in the Post Office’s annual Holiday Costs Barometer, which takes into account the average price of eight essential purchases, including an evening meal for two, a beer, a coffee and a bottle of suncream, in 44 of the world’s most popular spots.
The Algarve beat Bulgaria’s Sunny Beach, which topped off last year’s Barometer, with the total cost of the eight items coming in at the equivalent of £33.36, just 17p less than its Eastern European rival.
Spain’s Costa del Sol followed in third, ahead of Marmaris, Turkey, and the Czech Republic.
In its annual Holiday Money Report, the UK’s largest provider of foreign currency said in a statement published on Monday that Europe could be the big winner as tighter budgets attract UK tourists to resorts where the holiday purse will stretch furthest.
Led by the Algarve, Europe dominates the report’s Worldwide Holiday Costs Barometer of 44 resorts or cities, taking nine of the 10 best value places.
While the Post Office Travel Money barometer reveals that overall costs are higher worldwide than in 2016, UK tourists can take some comfort because prices in local currency for the eight tourist items surveyed have either fallen or stayed on par with 12 months ago in 40 per cent of the destinations surveyed.In Europe this rises to 50 per cent.
By choosing one of these resorts or cities, Post Office Travel argues that holidaymakers can keep the increased cost caused by the weaker pound to a minimum.
The best example of this, according to Post Office Travel, is in the Algarve, which tops the chart for the second year running with a barometer total of £33.36 - only £4 (10 per cent) more than a year ago. This is because the local price (euro) of an evening meal for two with wine – the biggest single cost in the barometer basket – is down almost five per cent year-on-year.
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 10 cheapest destinations, not to mention local price falls in half the European resorts and cities we surveyed.”
While the Post Office Travel Money 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.