The Post Office looked at a total of 36 destinations around the world and the Algarve came out in third place.
The Algarve region was considered the cheapest holiday destination for this summer 2022, according to the Post Office UK's "Holiday Money Report 2022" analysis, which analysed 36 destinations worldwide, comparing the prices of meals, drinks and other essentials that British tourists are likely to buy abroad.
25% cheaper than Spain
The analysis carried out reveals that prices in the Algarve are 25% lower than on the Costa del Sol, in Spain.
The overall ranking is led by Marmaris, a Mediterranean resort town along the Turkish Riviera (also known as the Turquoise Coast), ranking it as the most affordable holiday destination for 2022, with a total of €31.45 for a basket of eight products considered representative for tourists to buy during their summer stays.
According to the Post Office UK, these products include the price of a three-course dinner for two with wine, a bottle of beer, a glass of wine, a can of Coke, a large bottle of water, a coffee, sunscreen and insect repellent, which tourists can all buy for €31.45 in Turkey, with Sunny Beach in Bulgaria coming in second, where the same products can be purchased for a price of €31.52.
In the Algarve (in 3rd place), the study reveals, these same eight products have a total price of €53.49.
Funchal in Madeira appears ranked in 8th place, behind Cape Town (South Africa, in 4th place), Paphos (Cyprus, in 5th), Costa del Sol (Spain, in 6th) and Mombassa (Kenya, 7th), with a total cost of €77.18 for the same eight products.
At the tail end of this ranking appears Reykjavik, Iceland, with a total price of €190.4.
Still in terms of prices, the biggest price drops – between 2022 and 2020 – were seen in Tamarindo, Costa Rica (down 50.3%), followed by Marmaris, Turkey (down 45.2%) and Phuket, in Thailand (down 29.3%).
The Algarve region appears with a 20% drop in prices.
Nick Boden, Head of Post Office Travel Money, concludes that “there are advantages to doing your homework when it comes to your vacation destination, as there have been many people not traveling these past two years. Consumers need to be aware that prices have risen sharply in some destinations and dropped significantly in others”.