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Holiday Money Report 2023

Despite the rising cost of living, holidays remain a priority for UK travellers. But which destinations will help your money to go that little bit further?

Our annual Worldwide Holiday Costs Barometer reveals South Africa and Turkey lead the pack for the best value for your holiday money.

A white cruiser sits in the sunset-lit waters of Cape Town harbour, with the famous Table Mountain in the background

Cape Town is renowned for its stunning scenery and exciting food and wine experiences (Image courtesy of Cape Town Tourism)

Where to get best value in the world’s top holiday hotspots

Each year, the Post Office Travel Money Holiday Money Report looks at the destinations set to offer holidaymakers best value for money in the year ahead.

In 2023, we’ve surveyed 40 destinations worldwide to compare prices for meals, drinks and other essentials British tourists are likely to buy while abroad.

We’ve shared the key findings and top 15 best-value hotspots below. You can also download our full Worldwide Holiday Costs Barometer for more details.

Key findings include:

  • Cape Town in South Africa currently offers the best value for money, with a drop of 7.5% in costs. Previous leader, Marmaris in Turkey falls to second in the list

  • Long-haul holiday spots in Vietnam, Bali, Japan and Sri Lanka have all moved up into the top 15 best-value destinations since being off limits to overseas visitors until very recently

  • The Red Sea resort of Sharm el-Sheikh in Egypt takes 10th place on the barometer, with a resurgence of demand after flights to the region were suspended for years

  • Portugal’s Algarve is in fifth and again cheapest in the Eurozone, with costs a third higher than last year

  • Prices increases across Europe have seen popular destinations in Spain’s Costa del Sol, Paphos in Cyprus and Funchal in Madeira dropping to 11th, 12th and 14th respectively on the barometer

  • Reykjavik in Iceland remains the most expensive destination surveyed, with total costs of £198.42 for eight essential barometer items (listed at the end of this article). This is followed by the Seychelles and Barbados

  • Sterling’s fall against most foreign currencies has seen a rise in costs in 80% of resorts and cities surveyed for 2023

  • In contrast, there are a handful of destinations where sterling’s value will help your holiday money to stretch further. Our top tips are South Africa, Egypt, Japan and New Zealand

Find out where you’ll get the most out of your holiday money

Best value holiday destinations in 2023

Here are the top 15 best-value destinations for 2023 according to our Worldwide Holiday Costs Barometer’s findings. To see how these total costs break down by the eight individual items we surveyed, download the full Worldwide Holiday Costs Barometer.

Position Destination Total cost
1 Cape Town, South Africa ^



Marmaris, Turkey ˅



Sunny Beach, Bulgaria ˅



Mombasa, Kenya ^



Algarve, Portugal ˅



Hoi An, Vietnam (new)



Kuta, Bali (new)



Tokyo, Japan (new)



Colombo, Sri Lanka ˅



Sharm el-Sheikh, Egypt (new)



Costa del Sol, Spain ˅



Paphos, Cyprus ˅



Corfu, Greece ^



Funchal, Madeira ^



Phuket, Thailand ˅



Data relates to exchange rates on 16 March 2023

^˅ Arrows denote price rises or falls compared with last year


Travel money: buy before your fly

Wherever you're travelling to, you’re likely to get a better rate on travel money if you buy it before you get to the airport. Check the exchange rate for your destination to get the best value from your foreign currency.  

With Post Office, you can order travel money online to collect from any branch or get it delivered to your door. You can also buy selected currencies in 7,000 branches. And you can also load holiday funds onto a handy, secure, prepaid travel money card.

Travel insurance: safeguarding your trip 

If you’re visiting EU countries, a Ghic or Ehic will provide some medical cover there but they don’t cover everything. remember to get good travel insurance for your trip too, whether it’s to Europe or the wider world. And make sure your policy includes coronavirus cover.

Always check the latest travel advice

The requirements of UK travellers travelling to and returning from different destinations can change at short notice. Check the latest Foreign, Commonwealth and Development Office (FCDO) advice for your destination regularly, as travelling against this advice may invalidate your travel insurance.

Read the full findings of the Post Office Travel Money Worldwide Holiday Cost Barometer

How the barometer is compiled

40 destinations were surveyed with the help of leading holiday company Travel Republic, as well as national and local tourist boards (Marmaris Info for Marmaris). Eight items – a three-course meal for two with wine, bottle of local beer, glass of wine, can of Coca-Cola, large bottle of still water, cup of coffee, suncream and insect repellent – were selected as representative of the purchases UK tourists are likely to make and prices were cross-checked by Post Office researchers.

Other travel products

  • Travel money

    Wherever you're going, pick up your holiday money from Post Office with 0% commission and competitive exchange rates.

  • Travel Money Card

    One prepaid Mastercard® that stores up to 22 currencies and can be managed on the go with our travel app.

  • Travel insurance

    Protect your trip with cover for cancellation, curtialment, emergency medical costs and more.

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