In its annual Holiday Money Report, the UK’s largest provider of foreign currency says Europe could be the big winner as tighter budgets attract UK tourists to resorts where the holiday purse will stretch furthest.  Led by Portugal’s Algarve, Europe dominates the report’s Worldwide Holiday Costs Barometer of 44 resorts or cities, taking nine of the 10 best value places*.

While there is no ignoring the impact of a weaker pound on the costs UK tourists will face in resorts and cities abroad, Post Office Travel Money says this is only part of the picture. The Worldwide Holiday Costs Barometer shows the extent to which local prices for meals, drinks and other tourist staples will dictate how far the holiday budget stretches. 

Portugal’s Algarve, which tops the chart for the second year running with a barometer total of £33.36 – only £4 (10 per cent) more than a year ago.  This is because the local price (euro) of an evening meal for two with wine – the biggest single cost in the barometer basket – is down almost five per cent year-on-year. In second place is Sunny Beach in Bulgaria (£33.553) followed by the Costa Del Sol in Spain (£38.79).

The rest of the top 10 shapes up like this:

4th – Marmaris, Turkey

5th – Prague, Czech Republic

6th – Paphos, Cyprus

7th – Budapest, Hungary

8th – Tokyo, Japan

9th – Siliema, Malta

10th – Corfu

*Post Office Worldwide Holiday Costs Barometer research (December 2016): ( The barometer was compiled with the help of national and regional tourist boards and specialist tour operators Balkan Holidays (Bulgaria) and Travelbag (various long haul destinations). 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 insect repellent – were selected as representative of the purchases UK tourists are most likely to make on a foreign holiday.