Vietnam is the destination where your pound will stretch the furthest in 2024, with Costa Rica named the priciest place and NEW YORK second worst for value (with bottles of beer there costing £5.82)

The world’s best value-for-money destinations for Britons have been revealed, and Vietnam has topped the list for the first time.

In second place in the Post Office Travel Holiday Money Report ranking comes another long-haul hot spot, South Africa, with Kenya third.

The world’s most expensive destination is Tamarindo in Costa Rica, languishing in 40th place. Next is New York, which comes second from bottom. There, beer averages £5.82 a bottle.

The findings are courtesy of the 18th Post Office Travel Money Worldwide Holiday Costs Barometer, and are based on the costs of eight ‘tourism items’ across 40 resorts and cities, with comparisons made between items including the cost of a beer, a three-course evening meal, insect repellent and sunscreen.

In Vietnam’s Hoi An, a UNESCO World Heritage Site, this basket of goods totals £51.18. Meanwhile, at the other end of the scale, holidaymakers planning a trip to Tamarindo won’t get any change from £158.04 when purchasing the same items.

Second-place Cape Town has been knocked off its top 2023 perch thanks to a five per cent increase in prices, bringing the basket in at £54.35.

Kenya, loved for its safari and beach holiday combos, sits at number three thanks to a basket total of £54.93.

Many of the destinations have seen local price increases, yet once prices are converted to sterling, holidaymakers will still pay less than they did a year ago in 19 long-haul destinations, including six in Europe.

Tokyo has travelled up the ranking, coming in at fourth position after seeing costs plummet by 16.2 per cent to £59.05.

The Algarve in Portugal, which has seen a 1.2 per cent drop in price, comes in at number five (£59.69), overtaking Turkey (ninth, £66.07) and Bulgaria (seventh, £62.49). Traditionally Bulgaria is great value for money but prices have risen 6.4 per cent, resulting in a sharp increase to £62.49.

Sunny Cyprus is the fourth European destination in the top 10, with Paphos sneaking in at 10th place at £73.32.

Tropical Bali ranks eighth overall, while Sharm el-Sheikh sits in sixth place at £61.37 thanks to the devaluation of the Egyptian pound.

Cancun in Mexico has had a dramatic fall, out-pricing itself from a place in the top 10, now sitting at 33, the result of a price rise of 16.7 per cent. Goods now total £127.10 thanks to the strong Mexican peso.

Holiday concerns and intentions  

Two-thirds of Britons planning a trip abroad admit that the strength or weakness of the pound will be a factor when it comes to their decision making.

Another concern are prices. Eighty-four per cent of people, rising to 89 per cent of family travellers, are worried about the cost of meals and drinks.

Budgeting is also top of mind, with 90 per cent anxious about busting their budgets as well as the cost of flights and ferries.

Holiday funds will be largely sourced from savings, with 40 per cent admitting money will come from existing income. Many are thinking about how to make further savings, with 32 per cent of holidaymakers opting to travel during the more cheaper shoulder periods when costs are lower.

Currencies

In other results, the Post Office Travel Holiday Money Report reveals that the euro is by far the best-selling currency, with sales up eight per cent and providing a strong indicator as to where people will be travelling in 2024.

Following that is the US dollar and in third place, the Australian dollar. 

When it comes to the fastest-growing currencies, the Egyptian pound has shown the largest growth this year at 656 per cent. Hot on its heels is the Chinese yuan at 589 per cent, followed by the Japanese yen at 266 per cent.

The best deal will be found in Turkey because of the collapse of the Turkish lira. In 2024 visitors can expect to receive 81 per cent more liras than they did a year ago. However, prices in Marmaris restaurants and bars have more than doubled over the past 12 months, so if you’ve been before, expect a hefty increase.

Egypt is also a great choice for 2024. With a fall of over 71 per cent, visitors can now pocket an extra £208 on a £500 purchase.

If you’re considering Japan or Kenya, sterling has gained over 16 per cent in value against both the Japanese Yen and Kenyan shilling over the past 12 months.

Vietnam, Prague and Thailand also show strong sterling gains and if you’re heading Down Under to visit the relatives, Britons will earn seven per cent more to put towards their holiday funds.

Highest-rated holiday destinations

When it comes to the highest-rated holiday destinations, perennial Brit favourite Spain still takes the top spot at 86 per cent, despite having fallen to 14th place on the Barometer after it recorded a 9.3 price rise, with goods coming in at £81.45.

It’s closely followed by Portugal and Greece, which both score an 82 per cent rating from holidaymakers.

Not far behind are the Canaries and Balearics, as well as Cyprus, Croatia, Malta and Turkey, which all have impressive ratings of between 75 and 79 per cent.

Bulgaria, sitting in 10th position, has a 73 per cent good-value rating, while just three points below sits Croatia.

Thailand tops the list for the highest number of approval ratings out of 16 long-haul hotspots, with 71 per cent rating it good value, ahead of Mexico, Egypt, the USA and Caribbean.

Commenting on this year’s results, Laura Plunkett, Head of Post Office Travel Money, said: ‘The barometer results make it clear how important it will be this year to consider how sterling’s strength has impacted individual destinations.

‘Holidaymakers intending to travel long-haul can expect to get 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 to see which offer the cheapest prices. Portugal and Cyprus look like the best choices for bargain hunters.’