Spain and Portugal offer best value for holidaymakers

 

The old favourite holiday destinations, Spain and Portugal, are becoming more affordable for Britons, a Post Office money survey has revealed.

Prices have fallen 49% in Portugal over the last 12 months, making the country the cheapest for typical holiday spending products in a list of 10 tourist hotspots.

Items surveyed included a three-course meal, suncream and drinks, with the items costing just £32.84 in Portugal, with Spain the next-cheapest country at £36.68. Malaysia brought up the rear, with the same items on the list costing the most at £47.68.

The survey by Post Office Travel Money also revealed how foreign currencies against which the pound had fallen the most in the last year were those of Malaysia, Australia, Thailand and South Africa.

However, British holidaymakers are now getting much better exchange rates for Hungary, Croatia , Bulgaria and the eurozone.

Sarah Munro, Head of Post Office Travel Money commented: "Over the past two years popular resorts in the (Portuguese) Algarve and the (Spanish) Costas suffered badly from a drop in UK visitors, put off by the prospect of higher costs because of the weak pound.

"Restaurants and bars responded by slashing prices in a battle for business and competition between the two, together with an improving exchange rate, has resulted in a price crash in Portugal and Spain."

The Post Office said its fastest-growing currencies in terms of sales in 2010 compared with 2009 were those of Brazil, Mexico, Indonesia, Latvia and China.