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The Portugal Algave has been named the destination of better values for British tourists for the first time in nine years, according to new analyzes, due to his free food and sterling force against the euro.
The cost of a basket of eight ordinary tourist purchases-including drinks, a meal for two and sun cream-has fallen 1.6 percent year by year to £ 58.95 in the algae, making it cheaper than 47 destinations surveyed by postal travel money, raising up from fifth place in 2024.
Cape Town in South Africa (£ 59.84) and Tokyo in Japan (£ 63.34) claim second and third places, despite rising prices in both cities compared to a year ago.
A three-course meal for two with wine in the popular Portugal Algares costs £ 40.33, one-third of the same meal in New York (£ 128.27), the most expensive of the surveyed destinations.
“Although the Algarve has presented in the Top 10 of better values since 2010, she has struggled to match the cheapest awards destinations in recent years,” said Laura Plunkett, head of the postage travel.
“Now prices have risen in its nearest competition, but have remained low in Portugal.”
A pure increase of 21.1 percent against the Mexican pesso and 17.5 percent against the Turkish lira has translated into considerable savings for UK vacationers in these countries, the foreign exchange provider said. Those who exchange £ 500 for Pesos will receive £ 87 more than a year ago, making destinations such as Cancún and Tulum of much better value. Continuous free depreciation means that British visitors would receive £ 74 more for £ 500.
This week and the euro increased against the dollar at their highest level since the US election week, after President Donald Trump announced an additional 25 percent fee for steel and aluminum imports from Canada and US trade policies uncertainties, inactivating investors.
Pound and the euro increased against the dollar at their highest level since the US Election Week on Wednesday and Sterling ended the week with about $ 1.29, its strongest level since November 8, 2024.
“This obviously predicts good news for vacationers as they will have more dollars for their pound when they change money compared to the beginning of this year,” Plunkett said.
“However, it’s hard to predict how things will play in the coming weeks.”
The 19th annual report of the Post Office revealed that three in five British plan holidays outside this year, from 51 percent last year. At the time of the survey in January 2025, about 44 percent had reserved them.
Plunkett pointed out a “real resistance” in attitudes to the departure, with customers prioritizing traveling abroad for other spending choices.
“We think it’s part of a lifestyle with which people are used to and don’t want to give up,” she said.
More than half of those planning a holiday outside this year or aim to budget more or the same as they have done in the past, even when the cost of the living crisis weighs costs. The percentage of people choosing an activity holiday has tripled to 15 percent, compared to last year’s figures.
The highest price increase was in Kenya, Marmaris and Turkey and Sharm al-Sheikh of Egypt, while the largest false was the Dominican Republic.
