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This European region has been named one of the cheapest holiday destinations in the world

by Justin Marsh
March 25, 2024
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Beautiful beach in Carvoeiro, Algarve, Portugal
The Algarve is famed for its beaches (Picture: Getty Images/iStockphoto)

If you’re looking for a holiday that won’t break the bank, the Algarve in Portugal is the place to go.

The region has just been named as the fifth best-value destination in the world for 2024 by Post Office Travel Money, making it Europe’s cheapest.

According to the brand’s Worldwide Holiday Costs Barometer, you’ll get more bang for your buck here than anywhere else on the continent, including Marmaris in Turkey and Sunny Beach in Bulgaria, where prices have risen in the last year.

Looking at the cost of eight popular items, the report found that a cup of filter coffee will set you back just 88p in the Algarve, while a bottle of local beer comes in at £2.20 and a glass of wine at £1.76.

It also that revealed the average three-course dinner for two – including a bottle of house wine – costs £39.52 in the popular resort, less than half what you’d pay in locations like Nice or Cancun.

Hoi An in Vietnam came top of the list overall, followed by Cape Town in South Africa, Mombasa in Kenya and Tokyo in Japan.

Typical street in Faro, Portugal
There’s plenty of history to explore too, though (Picture: Getty Images/iStockphoto)

Vietnam won out due to a combination of falling currency values and a 14.4% reduction in local prices, meaning UK travellers can take advantage of £1.16 beers, £1.05 insect repellent, £3.70 sun cream and £39.20 meals for two.

The total in Hoi An for the eight items studied was £51.18, while in the European winner, the Algarve, it was £59.69.

Yet given flights to Da Nang (the closest airport to Hoi An) from the UK start from £509 return and take upwards of 18 hours each way, the Algarve – with £30 return fares and a three-hour flight time from London to Faro – is often still cheaper and more convenient for British tourists.



Travelling to the Algarve

The Portuguese region of the Algarve was named ‘Europe’s best beach destination’ in 2023 for the tenth time in a row, thanks to its 200km of stunning coastline.

Its 88 Blue Flag beaches, ranging from stretches of golden sand to secluded rocky bays, are a major draw for tourists, but there’s plenty more to do if you want a packed itinerary.

Popular spots here include Albufeira, Lagos, Faro, and Portimao, with dolphin-spotting tours and sunset cruises departing from each throughout the busy season.

Faro’s Old Town is a must-see for history buffs, while families can enjoy theme parks like Zoomarine and Slide & Splash. There are also a number of nearby vineyards, where you can sample the local wines and find out how it’s produced.

Weather in the Algarve

According the Met Office, you can average maximum temperatures of 29.1°C in July, with hardly any rain and up 12 hours of sunshine each day during the summer. January is the coldest month, seeing peaks of 16.2°C and 60mm rainfall.

How to get to the Algarve

Regular flights to Faro are available from most UK airports, with return fares in April starting at £30.

On the opposite end of the spectrum, Tamarindo, Costa Rica, was the most expensive destination on the barometer, in part due to the growing strength of the Costa Rica colon. Its prices are up 13.2% year-on-year, making it even more spenny than New York and Dubai.

A three-course meal for two with wine in the Central American beach resort averages at £107.38, alongside a bottle of sunscreen at an eyewatering £23.55.

In Rodney Bay in St Lucia, you’re also looking at forking out £5.30 for a simple bottle of water, while you could end up paying £6.94 for a beer in Nice, France, or £9.38 for a glass of wine in Cancun, Mexico.

Hoi An, Vietnam: High view of Hoi An ancient town at sunset.
Hoi An is the best value around the world (Picture: Getty Images/iStockphoto)

Head of Post Office Travel Money, Laura Plunkett, said: ‘The barometer results make it clear how sterling’s strength has impacted individual destinations. Long haul travellers can expect more for their money because the pound has gained ground in most destinations.

‘By comparison, sterling’s gain against the euro has been more modest so it will pay to compare eurozone destinations. Portugal and Cyprus look like the best choices for bargain hunters.’



Top 15 best-value holiday destinations for 2024

  1. Hoi An, Vietnam
  2. Cape Town, South Africa
  3. Mombasa, Kenya
  4. Tokyo, Japan
  5. Algarve, Portugal
  6. Sharm el-Sheikh, Egypt
  7. Sunny Beach, Bulgaria
  8. Kuta, Bali
  9. Marmaris, Turkey
  10. Paphos, Cyprus
  11. Penang, Malaysia
  12. Phuket, Thailand
  13. Delhi, India
  14. Costa Del Sol, Spain
  15. Montego Bay, Jamaica

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