With the rising cost of living affecting us all, many tourists are looking for places to go where their money will go the furthest. UK Post Office researchers polled 2,000 tourists on 36 destinations worldwide they’d previously visited, asking them to rate the holiday hotspots on cost-effectiveness. best value holiday destination 2022

As well as recording tourists’ perceptions of costs abroad, the research investigated how far their money would stretch in dozens of different travel destinations.

If you want to get away without breaking the bank, here’s where to head for your next holiday.

So which holiday spot is the best value for money? best value holiday destination 2022

Turkey and Bulgaria emerge as the best value in this year’s survey of prices for meals, drinks and other tourist essentials in 36 destinations worldwide. The collapse of the Turkish lira helped Marmaris edge past Sunny Beach, Bulgaria to take the top spot for the first time.

Prices are down in both destinations but a fall of almost 37 percent year-on-year in Marmaris, compared with five percent in Sunny Beach, means that Turkey has become marginally cheaper for British visitors – although just pence separate the two. They are among nine of the 10 best value destinations where prices are down on 2021 levels.

Europe continues to dominate the top 10. In third place after a price fall of one percent, Portugal’s Algarve is again the cheapest in the Eurozone – with costs 25 percent lower than the Costa del Sol (6th). A 15.2 percent drop in costs for Cyprus, means Paphos has moved up from 11th to fifth in the table, overtaking the Spanish favourite, where prices are down by just 2.2 percent.

Reykjavik, Iceland is the most expensive destination

Sliema, Malta (9th) has also entered the top 10 after recording a 5.8 percent fall.
In fourth place, Cape Town, South Africa remains the best value for long-haul holidaymakers, with prices down 1.6 percent. It is joined in the top 10 by Kenya, where a 5.9 percent drop in barometer costs has helped Mombasa jump five places to seventh in the table.

Orlando, Florida (10th) is making its first appearance in the leading 10 after registering a 10.1 percent year-on-year price fall, rising to over 22 percent in two years. Madeira completes the top 10 in the eighth position, but prices have risen over three percent.

At the other end of the spectrum, Reykjavik, Iceland remains the most expensive destination surveyed, followed by Barbados and Dubai. All three registered price increases of over 20 percent, with Dubai seeing costs spiral by a third.

How far will your money go?

36 destinations were surveyed for the Post Office Worldwide Holiday Costs Barometer, compiled with the help of national and local tourist boards (Balkan Holidays for Sunny Beach and Marmaris Info for Marmaris) Eight items – a three-course meal for two with wine, a cup of coffee, a bottle of local beer, can of Coca-Cola, a glass of wine, a bottle of still water, suncream and insect repellent – were selected as representative of the purchases British tourists are likely to make and prices were cross-checked by Post Office researchers.

In Port City Marmaris, Turkey, or Sunny Beach, Bulgaria, the list of goodies would set you back a mere €30.5.

Turkey’s beaches have long been a hit with holidaymakers

 

Despite Spain’s high approval rate amongst tourists, costs quickly rack up. In Costa del Sol, the same eight items will cost €71. In the Canary Islands’ Lanzarote, they will cost €84.

All this pales in comparison to pricey Reykjavik in Iceland, where the haul would set you back a mammoth €186.

Hotspots where the pound will pack a punch

Sterling’s strength against many currencies has proved decisive in helping to keep costs down. Once the sterling exchange rate is applied to local currency prices, British visitors will pay less in half of the destinations surveyed.
Aside from Turkey and Cyprus, prices have fallen significantly year-on-year in Greece (Corfu down 15.4 percent). They are also down 11.8 percent in Phuket, Thailand and 6.5 percent in Darwin, Australia, destinations just open to international visitors after two years of closure. Big price falls in both resorts have combined with a buoyant pound to reduce prices for Britons.

By contrast, there have been significant rises in some destinations – particularly those whose currencies have risen against the pound. Prices in Sri Lanka have increased by 26 per cent, while visitors to Mexico can expect to pay around 22 percent more in Cancun than a year ago.
The level of price falls over two years is even more marked. Compared with March 2020 when the first lockdown was announced and travel to most countries was barred, Post Office research found that prices are lower now in two-thirds of destinations – with the biggest drop of over 50 percent in Costa Rica.

 

Why is this research important? best value holiday destination 2022

Post Office researchers urged holidaymakers to do their research before heading abroad.

“It will pay dividends to invest time in holiday homework because many people won’t have travelled abroad in the past two years,” said Nick Boden, Head of Post Office Travel Money.

“They need to be aware that prices have risen sharply in some destinations and fallen significantly in others.

“We advise making a destination shortlist and comparing costs before booking a trip.”

Prices have fallen by more than a third in Marmaris compared to this time last year, fuelled by the collapse of the Turkish Lira. Prices have also dropped by 15 percent year-on-year in Greece.

“Compared with March 2020 when the first lockdown was announced and travel to most countries was barred, Post Office research found that prices are lower now in two-thirds of destinations – with the biggest drop of over 50 percent in Costa Rica,” researchers claim.

 

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