Best value holiday destinations 2023: South Africa, Bali and Japan among most affordable - full list

The best value holiday destinations for British tourists in 2023 have been named, with a long-haul destination coming out on top.

Cape Town in South Africa topped an annual Post Office report assessing how affordable holiday spots are for tourists from the UK.

The report surveyed 40 worldwide destinations and compared the prices of eight popular items typically bought on holiday to determine where Brits can make their money go further.

The items included a three-course meal for two with wine, a cup of coffee, a bottle of local beer, a can of cola, a glass of wine, a bottle of still water, suncream and insect repellent, as these are considered representative of the purchases UK tourists are most likely to make on holiday.

Cape Town ranked as the top destination offering the best value for money, with prices in the South African capital the lowest among all 40 destinations surveyed at just £51 in total. Sterling is also 15.7% stronger against the South African rand than 12 months ago, according to the Post Office.

Previous leader, Marmaris in Turkey fell to second in the list, while other long-haul destinations moved up the ranks, with Vietnam, Bali, Japan and Sri Lanka all featuring in the top 15 spots for best value.

Portugal’s Algarve claimed the crown as the cheapest holiday spot in the Eurozone once again, although costs are a third higher than in 2022, the report found. Price increases can be seen elsewhere across Europe, including Spain’s Costa del Sol, Paphos in Cyprus and Funchal in Madeira, all more expensive than a year ago.

Reykjavik in Iceland remains the most expensive destination surveyed, with total costs of £198.42 for eight essential items, 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, the report added. By comparison, there are a handful of destinations where sterling’s value will help your holiday money go further, such as Egypt, Japan and New Zealand.

The findings come as demand for foreign holidays has recovered to pre-pandemic levels, according to travel trade association Abta.

Many tour operators and travel agents have reported record sales since the start of the year and a new Abta survey suggests 65% of people are planning a foreign holiday in the following 12 months, with 37% of respondents having already booked.

Abta believes the results of the poll show overseas travel has returned to pre-pandemic levels, driven by a desire for “freedom”, with more than half (54%) of respondents saying they will cut back on other non-essential costs so they can afford to go on holiday.

Where are the best value holiday destinations for 2023?

Listed are the top 15 holiday destinations that offer UK tourists the best value for money, according to the Post Office Travel Money report for 2023 based on the total cost of eight essential items.

1. Cape Town, South Africa - £51.44
2. Marmaris, Turkey - £57.59
3. Sunny Beach, Bulgaria, £58.30
4. Mombasa, Kenya - £58.96
5. Algarve, Portugal - £59.95
6. Hoi An, Vietnam - £59.99
7. Kuta, Bali - £68.10
8. Tokyo, Japan - £71.49
9. Colombo, Sri Lanka - £73.00
10.  Sharm el-Sheikh, Egypt - £73.32
11. Costa del Sol, Spain - £73.99
12. Paphos, Cyprus - £78.08
13. Corfu, Greece - £81.35
14. Funchal, Madeira - £85.02
15. Phuket, Thailand - £85.33