allaboutwomen

Prices have fallen 49% in Portugal over the last 12 months, making the country the cheapest for typical holiday spending items in a 10-nation list.
Including a three-course meal, suncream and drinks, the items cost just £32.84 in Portugal, with Spain the next-cheapest country at £36.68.

Of the 10 countries surveyed, the most expensive for the items was Malaysia at £47.68.
The survey by Post Office Travel Money also showed that foreign currencies against which the pound had fallen the most in the last 12 months were those of Malaysia, Australia, Thailand and South Africa.

In contrast, British holidaymakers are now getting much-improved exchange rates for Hungary, Croatia , Bulgaria and the eurozone.

Post Office Travel Money head Sarah Munro said: "Over the past two years popular resorts in the (Portuguese) Algarve and the (Spanish) Costas suffered badly from a drop in UK visitors, put off by the prospect of higher costs because of the weak pound.

"Restaurants and bars responded by slashing prices in a battle for business and competition between the two, together with an improving exchange rate, has resulted in a price crash in Portugal and Spain."

The Post Office said its fastest-growing currencies in terms of sales in 2010 compared with 2009 were those of Brazil, Mexico, Indonesia, Latvia and China