26 Januari 2011
Spain and Portugal best value for holidays
By Tara Evans
Sun-seekers wanting a cheap holiday should head to Spain and Portugal, according to the a new survey of costs while abroad.
The traditional hotspots topped the Post Office Worldwide Holiday Costs Barometer - it measures the price of items, such as, a bottle of water and pack of cigarettes whilst overseas.
The pound may still be struggling against the euro, but local price cuts in Portugal and Spain have returned them to good value holiday destination status.
Prices have fallen 49% in Portugal over the last 12 months, making the country the cheapest for typical holiday spending items in a 36-nation list.
Including a three-course meal, suncream and drinks, the items cost just £32.84 in Portugal, with Spain the next-cheapest country at £36.68.
Of the 36 counties surveyed, the most expensive for the items was Australia at £157.51, followed by Hong Kong at £138.64.
Post Office Travel Money head Sarah Munro said: '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.’