Weaker pound to hit UK holidaymakers' wallets in European resorts

Sterling hit a 22-month low against the euro on Thursday, falling by 15% compared to the seven-year high achieved last July.

This means overseas spending will hit British wallets harder in a number of locations, the Post Office Travel Money study found.

The cost of 10 tourist staples – among them a cup of coffee, evening meal, sun cream and mineral water – has risen by 23% compared to last year in Majorca, Spain, 9% on the Greek island of Crete and 5% in the Algarve in southern Portugal.

But the report also stated that the blow will be softened by some destinations cutting their local prices.

Visitors to Limassol in Cyprus will find goods 7% cheaper this year, while the same items will cost 6% less in Spain’s Costa Blanca.

Compared with two years ago prices are still significantly lower for UK holidaymakers across Europe, except in Turkey and the Spanish island of Ibiza, researchers found.

The report noted that tourists visiting the Algarve for the first time in five years will find prices 28% lower than in 2011, making it the best place for a bargain break within the eurozone.

Andrew Brown of Post Office Travel Money said: “There is no escaping the fact that sterling is weaker this year than last, resulting in price rises in 80% of resorts surveyed.

“However, looking back to previous years, European resort costs have still fallen quite significantly in the longer term.”