Long-haul holiday costs fall for UK visitors

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Long-haul holidays are looking cheaper for British travellers after a surge in sterling against currencies in far-off hotspots.

Holidaymakers can expect to pay less (in sterling terms) than a year ago in 23 out of 26 destinations, says a Post Office report that also looked at three other places not surveyed in 2022.

East Asia offers the best value, say the authors, with five of the top 10 spots in the Post Office table, headed by Hoi An, in Vietnam. While Mombasa Beach in Kenya and Cape Town in South Africa come second and third, the following four places are Asian — Bali (Indonesia), Tokyo (Japan), New Delhi (India) and Phuket (Thailand).

The rankings are based on items tourists might buy on the spot including coffee, beer and a three-course dinner. But, significantly, they exclude hotel and flight costs.

While the pound has also strengthened against the euro, Continental prices have been boosted by inflation. This has been much less of a factor in long-haul destinations. In Vietnam, local prices for the goods basket are down, says the report, helping to lower the total cost for UK visitors by 19 per cent since last year.

Barbados and New York are the most expensive of the 30 destinations surveyed, although even then prices for the tourist selection have fallen in sterling terms — by more than 26 per cent in Bridgetown, Barbados, and 5.4 per cent in New York.

Laura Plunkett, head of travel money at Post Office, said: “After a summer when we reported that holidaymakers would have to dig deeper in their pockets on European holidays because of rising inflation, our research found that local price rises have been relatively low in most long haul resorts . . . The positive exchange rate means winter sun tourists will see their pounds stretch further in the majority of destinations. However . . . we advise holidaymakers to consider the whole picture and factor in the package price before booking.”