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Portugal’s Algarve has been named the best-value vacation vacation spot for British vacationers for the primary time in 9 years, in line with new evaluation, because of its low cost meals and sterling’s power towards the euro.
The price of a basket of eight widespread vacationer purchases — together with drinks, a meal for 2 and sunscreen — has dropped 1.6 per cent year-on-year to £58.95 within the Algarve, making it the most cost effective of 47 locations surveyed by Submit Workplace Journey Cash, shifting up from fifth place in 2024.
Cape City in South Africa (£59.84) and Tokyo in Japan (£63.34) declare second and third locations, regardless of value will increase in each cities in contrast with a yr in the past.
A 3-course meal for 2 with wine in Portugal’s well-liked Algarve prices £40.33, a 3rd of the worth of the identical meal in New York (£128.27), the most costly of the locations surveyed.
“Regardless that the Algarve has featured within the best-value prime 10 since 2010, it has struggled to match the most cost effective long-haul locations on value in recent times,” stated Laura Plunkett, head of Submit Workplace Journey Cash.
“Now costs have risen in its closest rivals, however remained low in Portugal.”
A sterling surge of 21.1 per cent towards the Mexican peso and 17.5 per cent towards the Turkish lira has translated into sizeable financial savings for UK holidaymakers in these international locations, the overseas alternate supplier stated. These exchanging £500 for pesos will get £87 greater than a yr in the past, making locations corresponding to Cancún and Tulum significantly better worth. The lira’s continued depreciation means British guests would obtain £74 extra per £500 exchanged.
This week the pound and euro rose towards the greenback to their highest degree for the reason that week of the US election, as President Donald Trump, introduced an extra 25 per cent tariff on metal and aluminium imports from Canada and US commerce coverage uncertainties rattled traders.
The pound and the euro rose towards the greenback to their highest degree for the reason that week of the US election on Wednesday and sterling ended the week at about $1.29, its strongest charge since November 8 2024.
“This clearly spells excellent news for holidaymakers as they may have extra {dollars} for his or her kilos once they change cash in contrast with earlier this yr,” stated Plunkett.
“Nonetheless, it’s arduous to foretell how issues will play out within the coming weeks.”
The Submit Workplace’s nineteenth annual report discovered that three in 5 Britons plan holidays overseas this yr, up from 51 per cent final yr. By the point it carried out the survey in January 2025, some 44 per cent had already booked them.
Plunkett famous a “actual resilience” in attitudes to getaways, with shoppers prioritising journeys overseas over different spending decisions.
“We predict it’s a part of a way of life that folks have change into accustomed to and don’t wish to relinquish,” she stated.
Greater than half of these planning a vacation overseas this yr both intend to price range extra or the identical as they’ve achieved previously, whilst the cost of living crisis weighs on spending. The proportion of individuals choosing an exercise vacation has tripled to fifteen per cent, in contrast with final yr’s figures.
The best year-on-year value rises had been in Kenya’s Mombasa, Turkey’s Marmaris and Egypt’s Sharm el-Sheikh, whereas the largest faller was the Dominican Republic.
