Holidays costa lot in Europe but less long haul

Holidaymakers face a steep rise in the cost of trips to the eurozone this year because of the plummeting pound, but summer breaks elsewhere in Europe and in the USA should offer better value, according to the annual Post Office Holiday Costs Barometer.

Cheapest overall in the Holiday Costs Barometer were the long haul trio of Thailand, South Africa and Egypt. At £28.58 for 10 holiday commodities, including drinks and meals out, Thailand weighed in at under a third the cost of the same items in Australia and well under half the average price of the shopping basket across the eurozone.

Rated most expensive in the 2007 Post Office barometer, the USA has now overtaken the eurozone resorts to become the seventh cheapest of 16 destinations surveyed. The 2008 report puts the cost of a bottle of Coca-Cola in Florida at just £1.60, compared with £2.94 in France, while suncream will set tourists back around £5 - half the price in Greece.

Helen Warburton, Post Office head of travel, said: "Holidaymakers planning trips further afield this year will get excellent value for money by travelling to long haul destinations. The pound is still strong against the US dollar and the new Open Skies agreement introduced this month should mean cheaper flights in the future."

"Elsewhere, sterling is up over eight per cent against the rand, making South Africa a good choice for UK tourists, and booming sales of Egyptian and Thai currency indicate that holidaymakers are already opting for trips where their pounds will stretch further."

Travellers watching their wallets could get better deals in Europe by choosing to holiday outside the eurozone, according to the Post Office, the UK's largest currency provider. Bulgaria has again emerged as the cheapest European destination, although more expensive than in 2007, followed closely by Turkey.

With a rate rise against sterling of around nine per cent for the Turkish lira - compared with 15 per cent for the euro, Turkey currently looks best value among the mass market holiday destinations. An evening meal out for two, including wine, costs £30.14, at least 20 per cent less than in France, Greece, Portugal or Italy.

Spain emerges as the cheapest place to holiday in the eurozone - up to 15 per cent less for tourist staples than the most expensive destinations, France, Portugal and Italy.

New entrants to the eurozone, Malta and Cyprus, have both seen price rises since they adopted the euro on January 1st, based on the information received from their tourist offices. However Malta emerges from the survey as one of the cheaper destinations, second only to Spain.

By contrast, Cyprus has become one of the more expensive resort areas in the survey. Prices for the holiday items have risen by 32 per cent since the changeover to the euro. Allowing for the nine per cent rise in the value of the euro since the beginning of the year, this suggests a price hike of 23 per cent on the items surveyed.

The Post Office Holiday Costs Barometer also compares the cost of car hire across the 16 destinations and found Spain to be the most expensive country at £58.87 for one day's rental. In the eurozone Italy was cheapest at £16.82 whilst motorists in Florida would pay £28.06 and in Turkey £38.75.

Helen Warburton said: "looking forward we believe that holidaymakers will be smarter about where they choose to go this year. Prices vary quite significantly within Europe so people will be looking to visit countries where a lower cost of living will offer them more for their pound, like Spain and Turkey."