Spain is cheapest place to holiday in Europe

 Holiday prices to Spain have dropped by up to 40 per cent at some resorts in Spain, research has revealed.

In the last five years the price of holidaying in Spain has dropped dramatically. A range of standard get-away items, such as sun cream and drinks, totalled less than £38 on Spain’s Costa del Sol.

Making Spain the second cheapest destination in a survey by Post Office Travel Money.

Another major factor was the rising value of the pound, up 6.4 per cent against the euro in the last three months.

If you want to get a bit further away, you can see even more value for money in Sri Lanka – where the same items cost just £28 – making it the best value for money place to holiday. However getting there is obviously rather more expensive.

The survey also showed the more expensive places to holiday, with the eight standard items costing £113 in Barbados and £115.69 in Brisbane (the most expensive destination).

The eight items in survey included; a cup of coffee, a local beer, a can of Coca-Cola, a bottle of sun cream, a bottle of water, insect repellent, a pack of cigarettes and a three course meal for two adults with a bottle of house wine.

Other value destinations included: Prague, Bulgaria, Cancun and Budapest.

In comparison more expensive destinations included Singapore, Auckland and Costa Rica.

Post Office Travel Money head Sarah Munro said: ‘The message that came out clearly from our holiday budgeting research was that 2012 will be all about affordability.

Holidays may still be a priority but they are not a necessity and people will not knowingly get into debt to fund them.

She added: ‘The winning destinations will be those that offer good value, not just for flights and accommodation, but for tourist staples like meals out and drinks.’