The Algarve has been named the “cheapest holiday destination” for British holidaymakers after topping the UK Post Office’s holiday costs barometer for the second year running.
The survey analyses the average cost of eight items commonly-purchased by holidaymakers – an evening meal for two, a glass of wine, a bottle of water, a soft drink, a beer, a coffee, insect repellent and sun cream.
Out of 44 popular tourist hotspots around the world, Portugal’s southernmost region is where the average price is lowest (£33.36/€38.60), followed by Bulgaria’s Sunny Beach (£33.53/€38.79) and Spain’s Costa del Sol (£38.79/€44.87).
A dinner for two in the Algarve (£18.27/€21.11), for example, is more than £150 (€173) cheaper than its equivalent in Dubai, the most expensive destination on the list.
Tourists can also enjoy a beer in the Algarve for just £1.04 (€1.20) or a glass of wine for £1.31 (€1.51).
But before anyone decides where to go for their holidays, it is wise to keep a close eye on how currency affects costs especially after a “tumultuous year for the pound, which fell heavily against the euro and dollar in June before regaining some ground,” says the Telegraph.
As Ian Strafford-Taylor, CEO of currency analysts FairFX, explained: “Holidaymakers who are truly savvy will be planning their travel money now and they’ll be the ones who get the biggest bang for their buck.”
In the Algarve, for example, the cost of an evening meal for two is down 5% on last year. “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,” said the Post Office’s Andrew Brown.
