Posted on Friday, 2 October 2015

If you want to top up your tan this winter without burning all your cash, then this year's Long-Haul Holiday Report from the Post Office may be of great use.

Indonesia's Bali and South Africa's Cape Town have been ranked as the top two most affordable destinations, based on a specific 'basket' of goods.

Among the commonly-sought items are:

• Bottle of beer/lager;
• Cup of coffee;
• Can of Coke/Pepsi;
• Glass of wine;
• Cocktail;
• Small chocolate bar;
• Bottle of mineral water;
• Sun cream;
• Insect repellent;
• Three-course evening meal for two, including bottle of wine.

This year's list makes good reading for spend-conscious Brits, with 16 out of 33 key long-haul destinations coming out cheaper than they were last year. Underlying this fall in costs is a strong pound in combination with a drop in resort costs.

Exchange rate gains of more than 15 per cent have been seen in Bali and South Africa.

Bali, Indonesia

Top 10 Cheapest Destinations

Destination	Total cost of travel staples	% rise/fall over 2014 prices
Bali, Indonesia	£37.91	-5.50%
Cape Town, South Africa	£41.58	-10.90%
Tokyo, Japan	£51.81	-21.50%
Mombasa, Kenya	£52.65	-19.30%
Colombo, Sri Lanka	£57.25	15.20%
Phuket, Thailand	£58.31	6.20%
Cancun, Mexico	£63.75	-11.10%
Tamarind, Costa Rica	£67.41	20%
Grand Bay, Mauritius	£67.50	-5.80%
Penang, Malaysia	£68.29	-41.10%

Cape Town, South Africa

Perhaps one of the most surprising destinations on the list is Tokyo, traditionally seen as an expensive city. The Japanese megalopolis is now third cheapest, up from eighth-cheapest last year. Costs in Tokyo have dropped by half science 2013, according to the report's authors.

Penang, Malaysia, saw the biggest fall in costs this year. A basket of goods purchased there now costs £68.29, a drop of 41.1 per cent – pushing the city from 29th to 10th on the list. The strength of sterling and competition to attract tourists are responsible for the fall in prices.

Jumeirah, Dubai, UAE (romrodinka/Bigstock.com)

Top Ten Most Expensive Destinations

Destination	Total cost of travel staples	% rise/fall over 2014 prices
Jumeirah, Dubai	£167.10	4%
Various, Singapore	£148.51	-4.40%
Muscat, Oman	£145.16	15.20%
English Harbour, Antigua	£137.13	16.70%
Miami, USA	£121.33	6.10%
St Lawrence Gap, Barbados	£117.58	15.50%
Sharma El Sheikh, Egypt	£107.32	-8.50%
Montego Bay, Jamaica	£105.56	23.70%
Beijing, China	£102.64	5.60%
Auckland, New Zealand	£100.66	24.30%

The survey also reveals the most expensive destinations. Jumeirah in Dubai came top this year – where a cocktail will cost you over £10 and a beer more than £8. That all-important bottle of sun-block with set you back nearly £13.

Auckland, New Zealand also saw big rises this year – amounting to 24 per cent compared to last year.

Auckland, New Zealand

The British pound has fared less well again the US dollar in recent times, making many State-side destinations – such as Miami – more expensive for UK tourists. Caribbean hotspots have also become more costly because their currencies are pegged to the dollar. That basket of goods now costs 16.7 per cent more in Antigua; 15 per cent more in Barbados; and 23.7 per cent more in Jamaica.

Exchange Rate Awareness

Being able to spend more on day-to-day treats is obviously a big factor in how enjoyable a holiday is – and the best way to keep these costs down is, as this report reveals, to choose a destination where sterling has strengthened against the local currency. Thankfully, many such locations are also some of the world's most exciting.

Peace of Mind for a Relaxing Trip

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With Emergency Medical and Repatriation Expenses cover of up to £10m, Legal Costs and Expenses cover of up to £25,000 and Trip Cancellation cover of up to £4,000, starttravel.co.uk's travel insurance gives you true peace of mind on your holidays.

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