Yet currencies in other popular destinations have strengthened far more against the pound over the past year. Though it may have a tempting average January temperature of 22C (72F), the currency in the Dominican Republic has risen 12.5pc against the pound since 2021.
The story is much the same in America, where the dollar has risen 11pc against the pound in the past 12 months. According to the Post Office, holiday expenditures are also higher in the US than they are in most European destinations.
In Orlando, Florida, a typical evening three-course meal for two with a bottle of wine costs £43.50 on average, while a cup of coffee costs £1.87. A bottle of beer, meanwhile, costs £3.77 – more than eight times the equivalent price in Bulgaria.
Reykjavik, Iceland, was revealed to be the most expensive destination, followed by Barbados and Dubai. Nick Boden, of the Post Office, said there had been “significant price rises” in some destinations, namely Sri Lanka, where prices had soared by 26pc, and Cancun, Mexico, up 22pc.
Despite this, price falls since the pandemic have been much more marked, the report found.
The report found prices are lower now in two thirds of destinations, with the biggest drop of over 50pc in Costa Rica.
Simon Phillips, of No1 Currency, warned holidaymakers to take some local currency to winter hotspots, as “cash is still king” in many destinations outside the EU.
He said: “Ordering your foreign currency before you leave also gives you a chance to shop around for the best deal, giving you the best bang for your buck – or euro – when you arrive.
“Never leave it to the last minute to get your travel money, as airport bureaux de change typically offer the poorest exchange rates.”
