Cheap meals mean the Algarve offers best value for UK holidaymakers – report

Portugal’s Algarve region offers the best value for UK holidaymakers, according to new research.

Analysis by Post Office Travel Money found prices for eight items typically purchased by tourists are cheaper in the Algarve than in 46 other popular destinations across the world.

Prices include £1.27 for a cup of filter coffee in a cafe or bar, £5.08 for a 200ml bottle of suncream, and £40.33 for a three-course evening meal for two with a bottle of house wine.

In New York City, the most expensive destination analysed, prices are £3.77 for coffee, £8.14 for suncream and £128.27 for an evening meal.

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Food and drink

Overall, prices for UK visitors to the Algarve are 1.6% lower than a year ago, which was attributed to the low cost of meals and drinks, and the 1.8% year-on-year growth of sterling against the euro.

Prices have fallen in half of the destinations analysed, with the sharpest fall (26.5%) in the Dominican Republic.

After the Algarve, long-haul locations take the next five spots for the cheapest locations.

They are led by Cape Town, South Africa; Tokyo, Japan; and Bali, Indonesia.

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Consistency 

Laura Plunkett, head of travel money at Post Office, said: “It’s interesting to see the Algarve back at the top of the barometer chart again and this is largely down to the remarkable consistency in its low prices for meals and drinks.

“Even though the Algarve has featured in the best value top 10 since 2010, it has struggled to match the cheapest long-haul destinations on price in recent years.

“Now prices have risen in its closest competitors but remained low in Portugal.

“This makes the Algarve a great choice for holidaymakers who want to keep their holiday spending to a minimum.”