It has long been a family-favourite destination for Britons looking for beautiful beaches and glorious weather.
And there are no signs of the Algarve losing its place as a holiday hotspot as it emerges the idyllic Portuguese coastline is also the best value for money.
The region – favoured by Holly Willoughby, Wayne Rooney and former Chelsea owner Roman Abramovich – has taken top spot in a list of affordable destinations.
Cape Town and – surprisingly – Tokyo took second and third place respectively, proving better value than Sunny Beach in Bulgaria, according to the latest Post Office Holiday Money Report.
A glass of wine on Portugal’s golden southern beaches costs on average £2.80, while the average evening meal for two, with a bottle of house wine, is £40.33.
Laura Plunkett, head of Travel Money at the Post Office, said: ‘Even though the Algarve has featured in the best value top ten since 2010, it has struggled to match the cheapest long-haul destinations on price in recent years.
This makes the Algarve a great choice for holidaymakers who want to keep their holiday spending to a minimum.’
The Post Office’s ‘barometer cost’ is determined by totalling eight different local prices, including a bottle of local beer, a three-course meal for two with a bottle of house wine, and a cup of filter coffee.
There are no signs of the Algarve losing its place as a holiday hotspot as it emerges the idyllic Portuguese coastline is also the best value for money (stock image)
The region is a firm favourite of the likes of Holly Willoughby , Wayne Rooney and former Chelsea owner Roman Abramovich (stock image)
The total barometer cost in the Algarve came to £58.95, followed by £59.84 for Cape Town and £63.34 for Tokyo.
New York proved the most expensive, with a barometer total of £167.95.
Post Office Travel Money says currency sales are a good indicator of where Britons are choosing to visit. It shows an increased demand for longer-haul travel over the past year.
Ms Plunkett said: ‘Despite fluctuations and some uncertainty about sterling when it fell against key currencies earlier in the year, it has now bounced back from its January dip and currently looks stable.
‘More encouragingly… sterling has risen in value against practically every holiday currency since March 2023. This is a reassuring trend for holidaymakers planning trips abroad this year.’
