Portugal’s Algarve region offers the best value for money for UK holidaymakers, according to new research. Known for its golden beaches, rugged cliffs, and charming whitewashed villages, the sunny hotspot outperformed 46 popular global destinations, providing the most bang for the buck.
An analysis by Post Office Travel Money compared prices for eight typical tourist items across various locations and found the Algarve offers significantly lower prices than many other spots. A cup of filter coffee costs just £1.27, a 200ml bottle of suncream costs £5.08, and a three-course evening meal for two with a bottle of house wine costs £40.33.
In contrast, New York City, the most expensive destination in the study, had much higher prices – £3.77 for coffee, £8.14 for suncream, and £128.27 for an evening meal.
Overall, prices for UK visitors to the Algarve have dropped by 1.6% compared to last year, attributed to the low cost of meals and drinks, along with a 1.8% year-on-year increase in the value of the pound against the euro.
Laura Plunkett, head of travel money at Post Office, said: “It’s interesting to see the Algarve back at the top of the barometer chart again, and this is largely down to the remarkable consistency in its low prices for meals and drinks.”
After the Algarve, long-haul destinations dominate the next five spots for affordability, with Cape Town, South Africa; Tokyo, Japan; and Bali, Indonesia leading the list.
However, prices have fallen in half of the destinations analysed, with the Dominican Republic seeing the sharpest drop of 26.5%.
Ms Plunkett noted: “Even though the Algarve has featured in the best value top 10 since 2010, it has struggled to match the cheapest long-haul destinations on price in recent years.
“Now prices have risen in its closest competitors but remained low in Portugal. This makes the Algarve a great choice for holidaymakers who want to keep their holiday spending to a minimum.”
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