The Far East remains the best value for British holidaymakers this winter, but there are also price falls in parts of the Caribbean, according to research by the Post Office.
Destinations in the Far East and the Indian subcontinent have taken seven of the top 10 places in the latest Post Office Travel Money Long Haul Holiday Report, with Vietnam topping the chart.
Thirty destinations have been included in the report, which compares prices for a basket of 10 tourist staples, such as a three-course meal for two and a range of drinks.
Overall, prices have dropped in two out of three destinations surveyed in the report, with biggest prices falls in Barbados and Malaysia, where prices are down almost 19%. Prices have dropped in eight of the top 10 on the list.
A small drop in local prices and the falling value of the dong have combined to bring costs down by 10.9% in Hoi An, Vietnam, since the last Long Haul Holiday Report a year ago. The barometer basket adds up to £58.81, more than 8% lower than in Cape Town, second in the table, where the price is £64.28.
The Post Office found sterling’s value is likely to play a big part in keeping down prices.
For example, local prices in third-placed Bali have risen 10.8% since last autumn but an 11.3% fall in the value of the Indonesian rupiah against the UK pound means barometer costs are slightly lower – down 0.5% – year-on-year at £67.79. Bali also has cheapest meal price, with a three-course dinner for two people with wine costing £35.48.
Mombasa, Kenya has moved up to fourth place in the table on the back of a 1.7% fall in barometer costs to £68.33, overtaking Tokyo, which drops back to fifth place after prices rose by 5.6% to £68.61.
There are two new entrants to the top 10. Penang, Malaysia is in seventh place with a barometer cost of £83.85 and Phuket, Thailand is in ninth place at £87.82. Both have registered big barometer price falls of 18.6% and 14.1% respectively.
Sri Lanka, in sixth place, has overtaken India, which is eighth. Prices in Colombo are down 5.4% to £73.93, while Delhi has dropped to eighth after prices leapt 14.6% to £85.89.
Post Office Head of Travel Money at Post Office Laura Plunkett said: “Although sterling has fallen from its high point earlier this year and there are concerns about possible volatility this autumn, it’s important to note that it is stronger against most currencies than a year ago.
“Furthermore, local prices are stable in most of the destinations we surveyed, with falls in over 40% of them, so the prospects for winter sun holidaymakers look bright – especially in many Far Eastern and Caribbean countries where a combination of these factors means reduced prices for British travellers.”
The biggest barometer price fall was for Barbados, down 18.8%, at £116.38 for the basket of goods, and 20th in the table. Prices in Malaysia are down 18.6% and Thailand down 14.1%.
There have also been significant falls of 11.1% in Dubai, which is 22nd in the table, at £124.99; 10.9% in St. John, Antigua (17th, £112.90) and 10.1% in Darwin, Australia (27th, £141.13).
Exchange rates are a pivotal factor in this because sterling is currently stronger against 20 of the 25 currencies used by destinations featured in the Long Haul Holiday Report.
Where sterling has dropped in value year-on-year, the falls have almost all been minimal (Brazilian real: 0.5%; Mexican peso: 2%; Thai baht: 2.1% and Peru nuevo sol: 3%).
However, there has been a sharp fall of 18% for sterling against the Egyptian pound and, coupled with a 16% increase in local prices, barometer costs in Sharm el-Sheikh have rocketed by 41.5% year-on-year, to £110.21, As a result, Sharm el-Sheikh has fallen seven places to 14th in the Post Office chart.
Mahé in the Seychelles rates as the most expensive destination this year at £187.57 for the basket of tourist items.
This is primarily because of the high cost of eating out – £129.88 for a three-course meal for two with wine.
Top 10 best value destinations, with total barometer costs and year-on-year price increase/drop:
Hoi An, Vietnam: £58.81 (+10.9%)
Cape Town, South Africa: £64.28 (-0.3%)
Bali, Indonesia: £67.79 (-0.5%)
Mombasa, Kenya: £68.33 (-1.7%)
Tokyo, Japan: £68.61 (+5.6%)
Colombo, Sri Lanka: £73.93 (-5.4%)
Penang, Malaysia: £83.85 (+18.6%)
Delhi, India: £85.89 (+14.6%)
Phuket, Thailand: £87.82 (+14.1%)
Santiago, Chile: £93.02 (-8.5%)
Top 5 most expensive destinations:
Mahé, Seychelles: £187.57 (N/A)
New York, US: £165.85 (+4.7%)
Honolulu, Hawaii: £153.51 (N/A)
Darwin, Australia: £141.13 (-10.1%)
St George’s Grenada: £137.66 (+9.5%)
