Increases in the cost of food and drink overseas due to the weakened pound can be minimised by booking short haul trips, according to the research released today.
The survey compared the cost of tourist staples such as a three-course meal, a cup of coffee, suncream and insect repellent in 44 resorts or cities across the globe.
The seven cheapest destinations were all found to be in Europe, while far-flung places are more expensive - even without taking into account the cost of flights.
Portugal’s Algarve was named as the best value location for UK visitors, followed by Bulgaria’s Sunny Beach, Spain’s Costa del Sol, Turkey’s Marmaris and the Czech Republic’s Prague.
The only long haul destination which featured in the top 10 of the annual holiday money report was Japanese capital Tokyo, at number eight.
Cape Town in South Africa was at 11 on the list, ahead of Cancun, Mexico at 12 and Bali, Indonesia at 13.
Dubai was found to be the most costly location for a trip, with prices more than six times higher than in the Algarve.
The Caribbean island of Antigua was the second most expensive destination, followed by Washington DC in the US.
Sterling plummeted after the UK voted to leave the European Union, with its value against the euro down by more than 11 per cent.
Andrew Brown of Post Office Travel Money said: “Holidaymakers can do little about sterling’s value but they can do their homework and plan trips to resorts or cities where prices for meals, drinks and other tourist staples are low.
“Europe is looking unbeatable value with nine of this year’s 10 cheapest destinations, not to mention local price falls in half the European resorts and cities we surveyed. Further afield, Tokyo and Cancun are good bets for bargain hunters but don’t discount Cape Town or Bali.
“If the rand and rupiah fall in value, low costs on the ground could make these great choices too.”
The top 10 destinations with the lowest prices:
1. Portugal, Algarve
2. Bulgaria, Sunny Beach
3. Costa del Sol, Spain
4. Marmaris, Turkey
5. Prague, Czech Republic
6. Paphos, Cyprus
7. Budapest, Hungary
8. Tokyo, Japan
9. Sliema, Malta
10. Corfu, Greece