Bali has been knocked off the top spot in the Post Office Travel Money’s annual report on prices in long-haul destinations.

Instead Cape Town leads the field in this year’s Long Haul Holiday Report for being the cheapest of 34 resorts and cities, with a cup of coffee averaging £1.10 and a glass of wine £2.74.

Jumeirah Beach in Dubai is the most expensive, with a cup of coffee coming in at £4.26 and a glass of wine at £10.64.

Tokyo remains third cheapest, but is closing the gap on Cape Town and Bali with a cup of coffee averaging £2.06.

Using prices researched by long-haul tailor-made specialist Travelbag, Cape Town proved the clear winner in the ninth annual survey.

At £48.89 for a “basket” of 10 tourist items, including meals and drinks, the South African city ranks significantly cheaper than Bali (£62.56), where the cost of eating out has increased by more than 50% in the past 12 months.

Tourist prices there are now 28% higher than in Cape Town.

Competition between shops, restaurants and bars in Tokyo has reduced prices in the Japanese capital, and countered the effect of a 24% surge in the yen’s value against the pound.

An 8% fall in local prices means Tokyo is challenging Bali for second place, with the basket costing £63.87.

Although tourist prices are up by an average of 25% across all destinations once the sterling exchange rate (as of September 8, 2016) has been factored in, Tokyo is among the 40% where local prices have fallen below what they were in 2015.

In Orlando, prices are 12% higher than a year ago after the exchange rate is applied – half the overall average rise across the destinations surveyed. At £79.76 for the 10 items, Orlando has entered the best value top 10 in ninth place, its highest ranking in three years.

Washington DC (£142.22) was the most expensive of six American destinations surveyed.