Friday, September 27, 2013

Personal finance and money news, analysis and comment | theguardian.com: Bali best value for a long-haul holiday – with South Africa hot on its heels

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Bali best value for a long-haul holiday – with South Africa hot on its heels
Sep 28th 2013, 06:00, by Patrick Collinson

Australia comes bottom for long-haul value, with a meal three times more expensive than Bali, survey finds

Bali is the best-value destination for long-haul holidaymakers from Britain, with South Africa becoming much more affordable, according to a survey by the Post Office.

But there's bad news if you are heading down under, with Australia and New Zealand the priciest destinations.

Tourists can expect to pay more than £90 for a three-course meal for two even in far-flung parts of Australia such as Darwin, said the Post Office, compared with less than £30 in Bali.

A steep fall in the value of the South African rand has made holidays in Cape Town among the cheapest for those seeking winter sun.

Sterling has risen 20% against the rand since last year, sending South Africa six places up the league table of 32 long-haul destinations to take runner-up spot. While a bottle of local lager would set you back an average of £4.26 in Auckland, New Zealand, it costs £1.33 in Cape Town.

Other cheap destinations include Vietnam and Thailand, but the figures reveal that price variations are not just about the local level of economic development. For example, prices in Tokyo, once the world's most expensive city, are below those of Australia, New Zealand, Singapore and even Costa Rica, the Post Office found. A basket of holiday goods – from suntan cream to insect repellent, plus food and drink, would cost £106.08 in Tamarindo, Costa Rica, compared with £103.58 in Tokyo.

Meanwhile, prices in US locations such as San Francisco and Washington DC are below those of Rio de Janeiro and Beijing.

Sri Lanka, which was the cheapest long-haul destination in 2012, has experienced a surge in prices making it more expensive than Thailand.

The mighty Australian dollar which, despite a 10% setback, remains one of the world's strongest currencies, has made holidays in there almost prohibitively expensive. The Post Office found that a small chocolate bar (Mars Snickers) would cost £1.81 in Darwin but only 48p in Orlando, Florida. A bottle of Coca-Cola is £2.66 in Auckland but only £1.27 in New York.

Overall, the recent recovery of sterling against most major currencies has made winter sun holidays on average better value than last year, with prices down in sterling terms in half of the destinations surveyed. Jamaica saw the biggest prices falls, of around a third since 2012.

"After a summer when sterling bought less holiday cash for trips to Europe, winter sun tourists can look forward to seeing their pounds stretch further in many of the most popular long-haul destinations," said Andrew Brown of Post Office Travel Money.


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