A report from Post Office Travel Money reveals the best and worst-value holiday destinations around the world for 2024. Olivia Palamountain reports
Cape Town has reclaimed its position as the best value long-haul holiday destination for British travellers, according to Post Office Travel Money‘s latest report.
The South African city’s return to the top spot after six years is attributed to falling local prices and a weaker rand, resulting in a 12% cost reduction for UK visitors.
The annual Long Haul Holiday Report, which compares prices of common tourist items across 32 destinations, found that Cape Town’s basket of goods now costs £55.59, the lowest since 2018. This comes as British Airways announces expanded flights to the city.
Far Eastern destinations dominate the top of the chart, with Tokyo and Hoi An, Vietnam, taking second and third places respectively. Despite a 21% price increase, Hoi An remains competitive, while typically expensive Tokyo saw a 13.5% price drop.
The survey reveals that over half of the destinations have become cheaper for British travellers, primarily due to sterling’s strength against many long-haul currencies. Notable price falls were recorded in Barbados (down 18.5%) and Sharm el-Sheikh (down 16.4%).
However, some popular destinations have become more expensive. Hoi An experienced the largest price hike in the top ten, while Mombasa, Kenya, saw a 14% increase due to the rising value of the Kenyan shilling.
At the other end of the spectrum, Sydney, Costa Rica and New York rank as the most expensive destinations. Sydney tops the list with a basket cost of nearly £165, largely due to high dining costs.
The report suggests that the Far East currently offers better value for British tourists compared to Caribbean destinations, with only Montego Bay, Jamaica, making it into the top ten.
Laura Plunkett, head of Travel Money at Post Office, which accounts for one-in-four UK foreign exchange transactions, says: “As ever, our research revealed wide variations in the cost of tourist staples across the 32 destinations we surveyed.
“This means holidaymakers could save themselves a lot of money and make a big difference to the overall cost of their winter sun trip by doing some basic holiday homework before booking to find out where meals, drinks and other staples are going to cost the least.”
“Holiday homework is just one way that holidaymakers can save money. It’s also important to think carefully about how to get the most out of your spending money. Get holiday spending money in advance of travel because leaving it late and changing money at the airport or topping up overseas means wasting hard-earned cash on poor exchange rates or ATM charges.
“By changing more than £500, holidaymakers can get a better exchange rate at Post Office and on our website. You can also consider putting cash on a Post Office Travel Money Card which is available in up to 22 currencies and avoids paying the transaction charges incurred by debit cards and most credit cards in shops and restaurants abroad.”
