Mallorca has dropped down the annual value for money holiday destinations rankings according to the Post Office. According to its latest report, the power of the pound promises to pack quite a punch for British holidaymakers planning to travel abroad this year. Research for the Post Office Worldwide Holiday Costs Barometer has found that prices for meals, drinks and other tourist items have fallen in over 60 per cent of the resorts and cities surveyed since last year. But it is the strength of sterling rather than prices charged in restaurants, bars and shops abroad that will make many destinations cheaper for British visitors.
The research reveals year-on-year local price rises for tourist commodities in four out of five destinations. However, once these prices are converted to sterling, holidaymakers can expect to pay less than a year ago when visiting 25 of the 40 destinations featured in the 2024 barometer. This applies to seven of the 10 destinations offering British tourists the lowest prices.
Topping the chart for the first time is Vietnam, where a 14.4 per cent price fall in Hoi An has been achieved through a combination of lower charges in restaurants and bars and a sizeable drop in the value of the Vietnamese dong. At £51.18 for the barometer basket, Hoi An has leapfrogged last year’s leaders to rise from sixth to first place in the worldwide barometer and has done so because it is one of only eight destinations to combine a reduction in local prices with falling currency values.
By contrast, local costs have risen in Cape Town, last year’s barometer leader, and, even though sterling has surged in value against the rand, prices have increased by nearly five per cent as a result. At £54.35, Cape Town is the runner up in this year’s cost comparison, just ahead of third-placed Kenya (£54.93), where costs in Mombasa have fallen by seven per cent.
Japan is another Far Eastern destination to benefit from a significant rise in sterling’s value combined with a fall in local prices. Tokyo has moved up four places into fourth position after seeing barometer costs plummet by 16.2 per cent to £59.05. Portugal’s Algarve is the highest placed of 15 European destinations surveyed, holding on to fifth place with a 1.2 per cent drop in prices to £59.69. In doing so, it has overtaken Turkey and Bulgaria, where price rises have seen Marmaris and Sunny Beach fall from last year’s top three to seventh and ninth places respectively.
Despite the downward spiral of the Turkish lira, local prices in Marmaris restaurants and bars have more than doubled as owners try to overcome the challenge of inflationary price rises. Even after applying the favourable sterling exchange rate, barometer costs have risen 14 per cent to £66.07. In Sunny Beach, Bulgaria (£62.49), prices are up 6.4 per cent. Cyprus is the fourth European destination in the best value top 10 and the only new entrant. At £73.32, Paphos takes tenth
place as a result of a 6.8 per cent drop in barometer costs – the biggest price fall in Europe after Budapest, Hungary, where prices are down 10.7 per cent to £90.41.
Bali and Egypt complete the top 10 destinations. In eighth place, prices in Kuta are down 6.7 per cent to £63.31, while Sharm el-Sheikh has moved up to sixth place as a result of the devaluation of the Egyptian pound in early March. At £61.37, prices have fallen by 17.6 per cent. At the other end of the spectrum. Tamarindo in Costa Rica is the most expensive of the 40 destinations surveyed. At £158, prices have risen significantly in recent years – up 13.2 per cent year-on-year – because of the growing strength of the Costa Rica colon.
The same applies to Cancun, Mexico, once in the best value top 10 but now down to 33rd place after a price rise of 16.7 per cent to £127.10, mostly due to the strength of the Mexican peso. Post Office Travel Money’s Laura Plunkett said: “The barometer results make it clear how important it will be this year to consider how sterling’s strength has impacted individual destinations. Holidaymakers intending to travel long haul can expect to get more for their money because the pound has gained ground in most destinations. By comparison, sterling’s gain against the euro has been more modest so it will pay to compare eurozone destinations to see which offer the cheapest prices. Portugal and Cyprus look the best choices for bargain hunters.”