World's 'cheapest long-haul destination' has £1.60 beers and gorgeous beaches

25 September 2023 , 14:16

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Hoi An in Vietnam is the cheapest long haul destination looked at by the Post Office (Image: Getty Images/iStockphoto)

A no-expenses spared day and night out in one of the world's most intriguing holiday destinations will cost you just a touch over £50.

As the global economy continues to reel from the economic shocks of the Ukraine war and the coronavirus pandemic, finding a bargain is harder than it has been for a long while.

Although getting there is difficult and likely expensive, the Post Office has highlighted the long-haul destinations where your British pound will go the furthest. If you are in the mood for a big trip but want to keep your daily expenses low, then Hoi An in Vietnam is the place to go.

A drop in local prices and the falling value of its currency, the dong, have combined to bring costs down by 19.2% since last autumn. At £52.66, the barometer basket of 10 tourist staples, including a three-course evening meal for two and range of drinks, is over 11% lower than its nearest rivals – Mombasa Beach, Kenya and Cape Town, South Africa.

Beer costs £1.60 in the Vietnam city, coffee £1.36, a litre and a half of water 41p, and dinner for two people including a bottle of house wine coming in at £34.03. Hoi An isn't just cheap, but also a particularly interesting place to visit.

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The coastal settlement is known for its well-preserved ancient town that is made up of a mixture of styles including wooden Chinese shophouses, temples and colourful French colonial buildings, all cut through with canals.

World's 'cheapest long-haul destination' has £1.60 beers and gorgeous beaches

Hoi An isn't just cheap but a great holiday destination (Getty Images)

Generally the flight takes around 22 hours with one stop and costs around £900, although return tickets can occasionally be bagged for closer to £700. The environmental impact of flying so far and the price of the fare will take a fair few cheap meals out to offset.

The rallying of the pound has also seen prices drop for British travellers to Kenya. The Kenyan shilling is currently worth a third less than a year ago against sterling, which means that while local prices have risen by around 8% in Mombasa Beach, the overall barometer total of £59.57 is almost 20 per cent lower than in 2022.

While the cost of living squeeze is being felt by almost everyone in Britain as inflation remains high - particularly when it comes to food essentials - Brits who can afford to get abroad are finding their are some bargains to be had.

Inflation has not been a significant factor in long haul destinations as it was in Europe during the summer when prices for UK visitors soared despite the strong pound. When combined with relatively small local price rises, the strengthening pound actually means that barometer costs have dropped year-on-year in 23 of the 26 long haul destinations surveyed for the report a year ago.

Laura Plunkett, head of Travel Money at Post Office, said: “After a summer when we reported that holidaymakers would have to dig deeper in their pockets on European holidays because of rising inflation, our research found that local price rises have been relatively low in most long haul resorts.

"As a result, the positive exchange rate means winter sun tourists will see their pounds stretch further in the majority of destinations. However, while prices may be lower once they get to their destination, we advise holidaymakers to consider the whole picture and factor in the package price before booking.”

Despite the falls in most long haul destinations, the Post Office report found increased prices in three resorts.

They have risen by 7.1% in Cancun, Mexico to £125.78 and 5.8% in Tamarindo, Costa Rica to £143.04, mostly because these are the only long haul holiday destinations whose currencies have strengthened against sterling in the past year.

Prices have also risen by 18% in Punta Cana, Dominican Republic - the largest rise by far.

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Holidaymakers visiting the USA, Caribbean and Dubai will also see a boost to their spending power because of the recovery of sterling against the US dollar and the Caribbean and Middle East currencies that are pegged to it.

Laura added: “By doing their homework to see where the pound is worth more and where resort costs are low, holidaymakers can save themselves a lot of money – even within the same country or region."