Cape Town in South Africa has been named the cheapest holiday destination in the world, according to a new study.
Post Office Travel Money has revealed its 17th annual report, which compares the cost of eight travel items in 40 of the world’s most popular holiday destinations in a bid to rank the best-value locations for UK travellers across the globe.
Items assessed include the average price of a cup of coffee, a bottle of beer, a glass of cola, a 1.5L bottle of water, a glass of wine, a 200ml bottle of suncream, a bottle of insect repellent, and a three-course meal with a bottle of wine, to create a cumulative total.
Boosted by the South African rand’s sharp fall of almost 16 per cent against sterling in recent months and keen pricing in restaurants and bars, Cape Town has emerged as the best-value destination, up from fourth place a year ago.
A fall in prices of 8.4 per cent means that it’s the cheapest place in the world to get a three-course meal (£35.48) according to the Post Office study. Meanwhile, Reykjavek in Iceland ranked last – the most expensive destination surveyed – with an equivalent meal costing £135.87.
Only three European destinations have made the top 10 in the list of best-value destinations.
Despite a 19.2 per cent fall in the value of the Turkish lira, Marmaris in Turkey has dropped from the top spot to runner-up in this year’s barometer.
Prices have more than doubled since last year because of inflationary pressures and a 55 per cent rise in the minimum wage introduced in Turkey’s bars and restaurants.
In third place, Sunny Beach in Bulgaria is only marginally more expensive than Marmaris, but prices have also risen steeply by 20 per cent.
Similarly, prices have also risen by a third in Portugal’s Algarve region, which comes in fifth place.
The study reveals that millions of Britons who have taken trips abroad consider their holiday to be their biggest priority after paying for food, energy and other essential bills.
More than two in five (41 per cent) say they will dip into their savings to afford a holiday abroad, while more than half will do without home improvements or spending on cars.
While prices are up in 80 per cent of the resorts and cities analysed, the study claims that prices have fallen year-on-year in six of the lowest-price destinations.
Ed Dutton, portfolio director, financial…
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