Bali is the world’s cheapest destination according to the Post Office
UK holidaymakers can look forward to cheaper holidays in most countries thanks to the strength of the pound says the latest Post Office Money Report.
According to the report, prices are down in 70 per cent of the 44 destinations surveyed by the Post Office for the annual Worldwide Holiday Costs Barometer, with the biggest falls of 30-32 per cent in Jamaica, Japan and the Gambia. Bali emerges as best value overall while Portugal’s Algarve is now the cheapest destination in Europe.
The report looks at the average cost of eight items – a three course meal for two with wine, cup of coffee, bottle of local beer, can of Coca-Cola, glass of wine, bottle of still water,suncream and packet of cigarettes – to come up with a holiday shopping basket barometer for each destination.
Resort prices in Portugal and Spain provide the report’s most unexpected story – even though the pound is still weaker year-on-year against the euro (-1.9 per cent), prices have plummeted 18 per cent in the Algarve. As a result, Portugal emerges as Europe’s cheapest destination for the first time since 2010 with a barometer total of just over £35.
Spain is the only eurozone country surveyed to register a significant price rise. A 22 per cent increase in meal costs on the Costa del Sol accounts for the overall rise in the price to £39, which means that Spain falls from joint first place in last year’s Worldwide Holiday Costs Barometer to sixth position.
When looking at all destinations, Bali has toppled both Sri Lanka and Spain from the top spot they shared a year ago. At around £31 for the barometer items, Bali’s prices are over a third cheaper than in Sri Lanka, which has fallen to 15th place after registering the barometer’s highest price rise of 38 per cent. A slump in the value of the Indonesian rupiah makes tourist costs 19 per cent cheaper in Bali now than a year ago.
Vietnam is named as one of 10 Post Office Holiday Hotspots for the third year. Direct flights from the UK, cheap resort prices and a new crop of boutique beach hotels helped to stimulate a 94 per cent year-on-year surge in Vietnamese dong sales in 2013 – the biggest growth for any currency – with a cumulative increase of over 200 per cent in just two years. The Post Office expects Vietnam to build on this in 2014 as the new Etihad service to Saigon broadens the range of travel options for UK tourists.
South Africa is also named among the 10 Holiday Hotspots in the Holiday Money Report. As the country prepares to celebrate 20 years of democracy, Nelson Mandela’s recent death will renew interest in the country for UK travellers, while the rand’s continuing weakness against sterling will provide an added incentive. UK tourists are currently getting almost 28 per cent more rand for their pounds than a year ago and prices down 17 per cent year-on-year make Cape Town (£41.81) a top 10 value destination in the Worldwide Holiday Costs Barometer.
See www.postoffice.co.uk/worldwidecosts for the full report
