Spain pushes resort prices up by a third

Soaring resort prices in Spain have forced the holiday destination off the number-one spot for value this year.

 

According to the Post Office Travel Money 2012 Holiday Costs Barometer, Bulgaria now offers the best value, with Spain dropping to fourth place.

Turkey and Portugal have also overtaken Spain and are in third and fourth place, according to the barometer, which looks at in-resort costs at 15 short- and mid-haul destinations.

Overall, the rise in the value of the pound means UK tourists will get up to 14% more for their travel cash this year, the Post Office says.

At £42.79 for a shopping basket of ten resort prices including a three-course meal for two with drinks, light refreshments and other holiday essentials, Bulgaria is 4% cheaper year-on-year.

Escalating meal costs in the Costa del Sol have led to a 35% overall cost rise for Spain since last year, with the basket of items costing an average of £56.84.

Turkey is slightly cheaper than Spain, at £54.22. According to the report, resort charges in Marmaris have dropped 22% and are down by over a third compared with 2010.

Prices are now on par with 2008 and 28.5% lower than in 2009 when costs first began to soar.

The 2012 turnaround comes as restaurants and bars appear to have cut prices to bring back business, resulting in a drop of 12% in local costs.

The combination of lower prices and the stronger pound are giving UK tourists 14% more Turkish cash, or £60 more for every £500 they exchange for Turkish lira.

The Algarve (£54.46) has also squeezed in ahead of the Costa del Sol for the first time in two years, making Portugal the cheapest eurozone destination surveyed.

However, despite a fall of 7.7% in the value of the euro, costs in the Algarve have risen by 10% compared with last April.

There are mixed messages on pricing elsewhere in the eurozone. 

In addition to the rises reported in Spain and Portugal, prices are up 11% in Corfu.

At £65.62 for the barometer items, the Greek island is 21% more expensive than Turkey. By contrast, costs have dropped 19% in Cyprus (£57.57), 11% in France's Vendée region (£66.43) and 6% in Malta (£64.81).