The best and worst value holiday destinations

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Going on holiday is rarely cheap. Find out where your spending money will stretch the furthest.

With families across the UK feeling the pinch, getting value for money on holiday may be a particular priority in 2012.

Each year, the Post Office produces a Holiday Costs Barometer to compare the price of common tourist items in 40 holiday destinations.

These eight items are a cup of coffee, a meal for two adults, a tube of sun cream, a bottle of beer, a soft drink, a bottle of water, insect repellent and a pack of cigarettes.

Remember, however, the survey doesn’t include the costs of flights or accommodation.

It’s good news for the hoards of Brits who enjoy sunning themselves in the Costa del Sol in Spain as this area was the second cheapest of those ranked by the Post Office.

During their holiday, two adults could get a three-course meal including a bottle of wine for £22.73. In fact, tourists could purchase all eight items for just £37.72.

Its prices were beaten only by those in Sri Lanka, where costs tumbled by almost a third compared with last year.

Here are the 10 cheapest destinations according to the price of the eight tourist items:

1. Sri Lanka (£27.95)

2. Spain (£37.72)

3. Czech Republic (£39.57)

4. Bulgaria (£39.65)

5. Mexico (£44.03)

6. Hungary (£45.57)

7. Portugal (£45.58)

8. Thailand (£46.15)

9. South Africa (£47.62)

10. Vietnam (£50.71)

Source: The Post Office Travel Money

More expensive tourist spots

Of all the destinations included in the Post Office’s findings, Australia had the highest costs.

Taking a trip Down Under is especially pricey for smokers who fork out £11.56 for a pack of 20 Marlboro Lights cigarettes.

The 10 most expensive destinations

1. Australia (£115.69)

2. Barbados (£113.18)

3. Singapore (£113.03)

4. New Zealand (£108.29)

5. Costa Rica (£108.07)

6. Canada (£107.02)

7. China (£106.34)

8. Miami in USA (£104.55)

9. Brazil (£92.74)

10. Mauritius (£91.97)

Source: The Post Office Travel Money

What the survey doesn’t tell us

While it’s certainly useful to know the prices of tourist essentials, there are other expenses to bear in mind.

When going on holiday, it’s usually wise to take out travel insurance. To set the price of premiums, insurers consider your destination as certain parts of the world are inherently riskier than others.

Travellers visiting a region with a high risk of violence or disease may well end up paying more for their insurance.

Furthermore, this survey doesn’t include the cost of travel – flights to some of these destinations are unlikely to be cheap.

Avoid these holiday rip offs

In most cases, credit and debit card companies impose expensive fees to withdraw cash or make purchases abroad.

To avoid this, consider a card that waives overseas fees. For instance, the Sainsbury’s Gold Credit Card allows interest-free purchases and cash withdrawals outside the UK.

Although there’s a £5 monthly fee, this card also includes insurance for two adults and up to six children.

If you're paying with your card abroad, the retailer may ask if you would prefer to pay in sterling or the local currency.

In this situation, it would be prudent to choose the local currency. Otherwise, the retailer may convert the purchase into pounds an unfavourable rate, which would bump up the overall cost.

**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**

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