After three years at the top of the best value rankings, price rises in Bali mean the Far Eastern favourite has been overtaken by Cape Town, which emerges as the cheapest of 34 resorts and cities surveyed for the annual Long Haul Holiday Report by Post Office Travel Money.
Using prices researched by long-haul tailor-made holiday specialist Travelbag, Cape Town proved the clear winner in the ninth Post Office survey.
At £48.89 for a ‘basket’ of ten tourist items, including meals and drinks, the South African city was significantly cheaper than runner-up Bali (£62.56), where the cost of eating out has mushroomed by more than 50% in the past 12 months. As a result, tourist prices are now 28% higher than in Cape Town.
But while local price rises of 30% in Bali will compound the impact of the weak pound on holiday wallets, competition between shops, restaurants and bars in Tokyo has reduced local prices in that city and cushioned the effect of a 24% surge in the yen’s value against sterling. At £63.87, Tokyo remains third cheapest in the value chart but an 8% fall in local prices means the Japanese capital is now challenging Bali for second place.
Although tourist costs are up by an average of 25% across all destinations once the sterling exchange rate has been factored in, Tokyo is among the 40% of resorts and cities surveyed by Travelbag researchers where local prices have fallen below 2015 levels to cushion the negative impact of the falling pound.
Andrew Brown of Post Office Travel Money said: “Costs may be higher in long haul holiday resorts this year for UK travellers but the good news is that local price cuts in many of the most popular ones will help to lessen the impact of the weaker pound. More than ever before, it will pay dividends to do some holiday homework before booking to find out where meals and drinks are cheapest. This can make a big difference to the overall cost of a holiday.”
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