Revealed: Vietnam is the destination where your pound will stretch the furthest in 2024, with Costa Rica named the most expensive place and NEW YORK coming in second by value (where bottles of beer cost £5.82)

The world’s best value for money destinations for Brits have been revealed, with Vietnam topping the list for the first time.

Second in the Post Office Travel Holiday Money Report rankings is South Africa, another long-haul hotspot, with Kenya in third.

The most expensive destination in the world is Tamarindo in Costa Rica, which languishes in 40th place. Next is New York, which ranks second from the bottom. There, beer costs an average of £5.82 per bottle.

The findings are from the 18th Post Office Travel Money Worldwide Holiday Cost Barometerand are based on the costs of eight ‘tourist items’ in forty resorts and towns, making comparisons between the costs of a beer, a three-course 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 change on £158.04 if they buy the same items.

Second-place Cape Town has been knocked off the top spot for 2023 thanks to a five percent price increase, taking the basket to £54.35.

Kenya, loved for its combination of safaris and beach holidays, comes in at number three thanks to a basket total of £54.93.

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

Tokyo has risen in the rankings to move into fourth place after costs fell by 16.2 per cent to £59.05.

The Algarve in Portugal, where prices fell by 1.2 per cent, came in at number five (£59.69), overtaking Turkey (ninth, £66.07) and Bulgaria (seventh, £62.49). Traditionally Bulgaria offers great value for money, but prices have risen by 6.4 percent, resulting in a sharp increase to £62.49.

Sunny Cyprus is the fourth European destination in the top 10, while Paphos sneaks into 10th place at £73.32.

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

Cancun, Mexico, has seen a dramatic decline, topping itself from a place in the top 10 to 33rd, as a result of a 16.7 percent price increase. The goods now stand at £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 in their decision-making.

Another concern is prices. Eighty-four percent of people, rising to 89 percent of family travelers, are concerned about the cost of meals and drinks.

Budgeting is also a top priority, with 90 percent worried about crushing their budgets and the cost of flights and ferries.

The holiday pay will largely come from savings, with 40 percent admitting that the money will come from existing income. Many are thinking about how they can save even more: 32 percent of holidaymakers choose to travel during the cheaper intermediate periods, when costs are lower.

Currencies

In other results, the Post Office Travel Holiday Money Report shows that the euro is by far the best-selling currency, with an eight percent increase in sales and a strong indicator of where people will travel in 2024.

This is followed by the US dollar and in third place the Australian dollar.

When it comes to the fastest growing currencies, the Egyptian pound has shown the biggest growth this year at 656 percent. Closely followed by the Chinese yuan with 589 percent, followed by the Japanese yen with 266 percent.

The best deal will be found in Turkey due to the collapse of the Turkish lira. In 2024, visitors can expect to receive 81 percent more liras than a year ago. However, prices in restaurants and bars in Marmaris have more than doubled in the last twelve months, so if you’ve been there before, expect a big increase.

Egypt is also a good choice for 2024. With a drop of over 71 percent, visitors can now earn an extra £208 on a £500 purchase.

If you consider Japan or Kenya, the pound sterling has appreciated by more than 16 percent against both the Japanese yen and the Kenyan shilling over the past twelve months.

Vietnam, Prague and Thailand are also showing strong share price gains and if you go Down Under to visit relatives, the British will earn seven percent more to spend on their holiday allowance.

Top rated holiday destinations

When it comes to the highest-rated holiday destinations, perennial British favorite Spain still takes top spot with 86 percent, despite falling to 14th on the Barometer after recording a price increase of 9.3, with goods came in at £81.45.

It is closely followed by Portugal and Greece, both of which receive an 82 percent rating from holidaymakers.

Not far behind are the Canary Islands and the Balearic Islands, as well as Cyprus, Croatia, Malta and Turkey, all of which have impressive viewing figures of between 75 and 79 percent.

Bulgaria, in tenth place, has a 73 percent good value rating, while Croatia is only three points lower.

Thailand tops the list for the highest approval ratings of the 16 long-haul hotspots, with 71 percent considering it good value, ahead of Mexico, Egypt, the US and the Caribbean.

Commenting on this year’s results, Laura Plunkett, head of Post Office Travel Money, said: ‘The barometer results highlight how important it will be this year to consider how the strength of the pound has affected individual destinations.

‘Holidaymakers looking to travel long distances can expect to get better value for their money as the pound has gained ground in most destinations.

‘By comparison, sterling’s gains against the euro have been more modest, so it’s worth comparing destinations across the eurozone to see which offer the cheapest prices. Portugal and Cyprus seem to be the best choices for bargain hunters.’