Algarve unseated

Bulgaria’s shopping basket is 13% more expensive than last year but it still unseated the Algarve from the top spot, where costs rose by a third. The Post Office says the Algarve is among 11 of 12 European resorts and cities where prices have risen since last year. The biggest rise was in the Costa del Sol (42%), which the research says is due to steep increases in the cost of eating out.

The only European destination to register a fall in prices is Porec on Croatia’s Istrian Peninsula. A drop of 11% has put the resort into the worldwide barometer top 10. The lowest price rise – 4% – is in the Czech Republic, which has moved up to fourth position.

The biggest price falls have been in long-haul destinations, thanks to the stronger pound and lower charges in shops, restaurants and bars. Prices have dropped 36% in Dubai (Jumeirah Beach, £141.23) and 27% in New Zealand (Auckland, £104.80). There is also good news for visitors to the US, with prices in Orlando falling 11%, although New York’s tourist costs are down by just 1%.

Post Office Travel Money’s Andrew Brown said: “This year’s barometer results are a mixed bag. Holidaymakers planning trips to long-haul destinations will benefit from big price falls that will help their travel cash stretch further.

“The Far East looks great value – especially Japan, Vietnam and Bali – and so too are several Caribbean islands.

“Closer to home, tourists will have to dig a bit deeper in their pockets to meet the higher prices we found in many resorts. Despite this, there is no beating Bulgaria for its low prices, and it is good to see Croatia featuring in the best value top 10 for the first time.”

Currency bestsellers

Four in five of the Post Office’s top 40 holiday currencies have dropped in value since last summer, headed by the Turkish lira. It tops the list of 10 currencies that have weakened most against sterling and is worth 17.3% less than a year ago. It is the only European currency to feature in the list – the biggest sterling gains have been against long-haul currencies – notably the Dominican peso and Costa Rican colon, which have seen double-digit drops of 14.6% and 12.5% respectively.

The US and Caribbean islands, whose currencies float alongside the dollar, look like better bets for UK tourists. Holidaymakers can expect their pounds to stretch 9.4% further in the US than last January, while gaining 10.6% if travelling to St Lucia or Antigua, and 9.8% in Barbados.

Conversely, eight of the 10 currencies that have strengthened most against sterling in the past year are for European destinations, including the euro, Croatian kuna, Bulgarian lev and Danish kroner, which have all risen in value by between 3.8% and 5.7%.