The country’s Algarve region 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 popular holiday spot around the world.

The Algarve pipped Bulgaria’s Sunny Beach, with Spain's Costa del Sol following in third, ahead of Marmaris in Turkey, and the Czech Republic.