Sri Lanka and Mexico don't costa fortune

18th Jan 2013

Warm-weather holiday destinations Sri Lanka and Mexico have proved they are hot stuff when it comes to value for money too.

Both were named in the top 10 cheapest countries to visit, according to new research.

The Post Office holiday money report found that Sri Lanka tied with Spain in topping its Worldwide Holiday Costs Barometer.

They have been costed as the least expensive of 42 tourism spots after price cuts in the Costas.

The barometer found that tourists flocking to Sri Lanka could pay a typical £36.14 for eight items, including an evening meal with drinks.

This worked out costing less than half the price of the same items bought in other destinations, and just a quarter of the cost in the dearest countries, Australia and South Korea.

Sri Lanka's resorts have pushed their prices up, but the former island of Ceylon should benefit from a sterling exchange rate 16 per cent stronger than the previous year.

It will also gain from more airline competition when British Airways resumes flights this spring.

Mexico also made the top 10, the same shopping basket costing a typical tourist £48.93.

The ranking came as Post Office peso sales increased by just over a third (34 per cent) on the year before. This represents a doubling in growth (216.5 per cent) since 2007.

Mexico's popularity is being attributed to low hotel and resort costs.

Meanwhile, the Post Office predicts a rise in Turkey's popularity this year.

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