Post Office Travel Money has released its annual report of the best value holiday destinations worldwide for 2024, and Portugal is the only European destination in the top five. Therefore, if you're seeking a budget-friendly holiday in 2024, look no further than the Algarve in Portugal, Europe's most affordable option. According to the Post Office Travel Money's Worldwide Holiday Costs Barometer, you'll find better value for your money here than anywhere else on the continent, surpassing destinations like Marmaris in Turkey and Sunny Beach in Bulgaria, where prices have surged over the past year.
The cheapest holiday destinations in the world
Hoi An in Vietnam claimed the top spot on the overall list, with Cape Town in South Africa, Mombasa in Kenya, and Tokyo in Japan following closely. Vietnam emerged as the winner due to a combination of declining currency values and a notable 14.4% reduction in local prices. Eight items were selected as representative of the purchases UK tourists when on holiday abroad, including a three-course meal for two with wine, a cup of coffee, a bottle of local beer, a can of coke, glass of wine, bottle of still water, sun cream and insect repellent. The total expenditure for the eight items studied in Hoi An amounted to £51.18, while in the Algarve, the European winner, it was £59.69.
Top 10 cheapest holiday destinations and prices
Cheap Algarve holidays
Is it expensive to holiday in the Algarve? Looking at the prices of these eight commonly purchased items, the report revealed that a cup of filter coffee is priced at a mere 88p in the Algarve, while a bottle of local beer is £2.20 and a glass of wine costs £1.76, for example.
The Algarve, known for its stunning coastline, offers a plethora of free or low-cost activities and attractions for visitors to enjoy. From relaxing on beautiful beaches and exploring picturesque towns to hiking along scenic trails and visiting historic sites, there are plenty of options that won't dent your wallet. Additionally, many water sports and recreational activities, such as snorkelling, surfing, and paddle boarding, are available at affordable prices.
As well as the items surveyed by Post Office Travel Money, the region offers a wide range of accommodation options to suit various budgets, including budget hotels, hostels, guesthouses, and self-catering apartments. Additionally, during the off-peak season, you can often find discounted rates and special offers at hotels and resorts.
What is the cheapest part of the Algarve?
The eastern Algarve tends to be the cheapest part of the region for travellers. Towns such as Tavira, Olhão, and Vila Real de Santo António offer more affordable accommodation options, dining, and activities compared to the central and western Algarve. Additionally, the eastern Algarve tends to be less developed for tourism compared to areas like Albufeira or Lagos, resulting in fewer crowds and potentially lower prices. Visitors to the eastern Algarve can still enjoy beautiful beaches, historic sites, and authentic Portuguese culture at a more budget-friendly cost.
What is the best month to visit the Algarve?
The Algarve offers a diverse range of experiences throughout the year, making it a desirable destination for travellers with varying preferences. May and June provide ideal conditions with warm weather and manageable crowds, while September and October offer similar advantages but with a quieter atmosphere.
July and August are the peak summer months, characterised by hot temperatures and bustling tourist activity, albeit with higher prices and more crowded attractions. Shoulder seasons, including April, November, and the winter months from December to March, offer milder temperatures and fewer tourists, making them suitable for those seeking a more peaceful holiday experience. Ultimately, the best time to visit the Algarve depends on individual preferences for weather, activities, and crowd levels.