The holiday hotspots where travellers get the most (and least) for their money

The strength of sterling is overcoming local price rises for UK holidaymakers visiting many popular destinations, according to new research.

Post Office Travel Money said UK travellers are paying less than a year ago for meals, drinks and other tourist items in 25 of 40 resorts and cities analysed.

Local prices for tourist commodities have risen over the past 12 months in four-fifths of destinations, but the impact of this has been largely negated as 90% of best-selling foreign currencies have weakened compared with sterling.

The study of the cost of eight tourist items found Vietnam’s Hoi An was the cheapest location surveyed, with the cost of eight tourist items for UK holidaymakers falling by 14.4% year-on-year.

A three-course evening meal for two including a bottle of house wine was found to typically cost just £39.20.

Cape Town in South Africa was found to be the destination with the second lowest prices, followed by Mombasa, Kenya; Tokyo, Japan; and the Algarve, Portugal.

At the other end of the scale, the most expensive location analysed was Tamarindo, Costa Rica.

This was attributed to the growing strength of the Costa Rica colon.

Other destinations with the highest costs for tourist items were found to be New York, USA; St John’s, Antigua; and Rodney Bay, St Lucia.

Laura Plunkett, head of Post Office Travel Money, 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.”