
Tokyo has been revealed as the cheapest long haul destination, with an evening meal for two and wine averaging out at £35.02.

The local costs of everyday items in 30 resorts or cities were compared for the annual Post Office Long Haul Holiday Report to reveal where the pound will stretch furthest.

Japan's capital came out on top, while Rio de Janeiro was deemed one of the pricier places with a dinner for two coming in at £107.85. Other costly items in the South American city included lager - an average of £4.07 a bottle - and wine at £6.79 a glass.

Tokyo has been revealed as the cheapest long haul destination, with an evening meal for two and wine averaging out at £35.02

It is the first time Tokyo has come in number one and prices are 23 per cent lower than a year ago and down 60 per cent since 2012.

The Post Office's Long Haul Holiday Report was based on the costs of ten tourist items, including a cup of coffee, a bottle of lager, a can of Coca-Cola, a glass of wine, a cocktail, a chocolate bar, a bottle of water, sunscreen, insect repellent and a three-course meal for two.

Prices were researched by long haul tailor-made holiday specialist Travelbag and cross-referenced with those provided by tourist offices.

The biggest year-on-year falls have been in three of the leading Caribbean islands, which had been looking expensive in past Post Office surveys.

Rio de Janeiro was deemed one of the pricier places with a dinner for two coming in at £107.85. Other costly items in the South American city included lager - an average of £4.07 a bottle - and wine at £6.79 a glass

A 25 per cent fall to for the ten tourist items to £105.36 in St Lucia (Rodney Bay) has helped the island move up to 13th place from 28th last year.

Similarly, prices in Jamaica (Montego Bay) have dropped 24 per cent to £107.50 and the island has climbed 15 places to 14th in the table. The biggest fall has been in Antigua (Jolly Beach), where prices have plummeted 27 per cent to £114.72, taking the island from 32nd to 19th place.

Six of the top ten best value destinations are cheaper this year, according to the Post Office barometer of costs.

Aside from Tokyo and third-placed Mombasa Beach, Kenya (down one per cent to £68.59), the remainder are all new entrants to the top spots.

With a nine per cent fall in barometer costs, Hoi An in Vietnam (£76.74) is the highest placed of these, overtaking Bali (sixth place, £76.95) for the first time to take fifth position.

Another of the new entrants, Costa Rica, was named alongside Japan and Vietnam as a holiday hotlist choice for 2017 and visitors attracted by the direct flights now available to the country will find prices down eight per cent in Tamarindo to £79.94.

Phuket, Thailand fell from 7th to 11th place on the back of a 17 per cent rise to £88.84, making Thailand’s top resort over 15 per cent more expensive than Hoi An, Vietnam

The Post Office's Long Haul Holiday Report was based on the costs of ten tourist items, including a cup of coffee, a bottle of lager, a can of Coca-Cola, a glass of wine, a cocktail, a chocolate bar, a bottle of water, sun cream, insect repellent and a three-course meal for two

Prices were researched by long haul tailor-made holiday specialist Travelbag and cross-referenced with those provided by tourist offices

This has taken Costa Rica from 12th to seventh place in the barometer table.

Prices have also fallen seven per cent in Penang, Malaysia (£81.77) and six per cent in Punta Cana in the Dominican Republic (£85.34) helping these destinations move to ninth and tenth place respectively.

Sri Lanka (Colombo, £75.83, prices up seven per cent) and Orlando, USA (£80.60, prices up one per cent) have retained top ten places and move up to fourth and eighth in the table.

The four destinations that lost their top ten places have all registered big price rises in the past 12 months.

Phuket, Thailand fell from 7th to 11th place on the back of a 17 per cent rise to £88.84, making Thailand’s top resort over 15 per cent more expensive than Hoi An, Vietnam.

Cancun, Mexico (£96.84) has dropped to 12th in the table from 6th in 2016 after prices rose 30 per cent and 18th placed Grand Baie, Mauritius (£114.31, tenth in 2016) is 37 per cent pricier.

The biggest price rise – 54 per cent - has been in Lima, eighth in last year’s top ten.

At £120.62, this sent Peru’s capital tumbling to 21st place. There have also been significant increases in the other South American destinations surveyed. Prices have risen 27 per cent in Santiago, Chile (£126.10, 23rd), while a 45 per cent rise in Rio to £160 has made Brazil’s best known city this year’s highest-priced destination – over three times as expensive as Tokyo.

Japan, Jamaica and St Lucia are among the destinations in hot demand according to the latest bookings trends from Travelbag

More positively, the Post Office barometer shows sizeable falls in two Middle Eastern destinations. Prices are down 21 per cent in both Oman (Muscat, £141.29, 27th) and Dubai (Jumeirah Beach, £157.75, 29th)

More positively, the Post Office barometer shows sizeable falls in two Middle Eastern destinations. Prices are down 21 per cent in both Oman (Muscat, £141.29, 27th) and Dubai (Jumeirah Beach, £157.75, 29th), with the result that the Emirate is no longer the most expensive destination in the survey.

Commenting on the results, Andrew Brown of Post Office Travel Money, said: 'With continuing uncertainty about sterling, it is more important than ever before for people planning winter sun holidays to do their homework and pick a destination where prices for tourist staples are low.

'In a Twitter poll we conducted last week over half of the 14,000+ people who took part said hotel and flight costs are their major concern but the truth is that resort prices can make a big difference to the holiday budget.

'Fortunately, price falls in many UK favourites mean there are plenty of great value long haul destinations to choose from. Japan looks very affordable these days with low prices for meals and drinks in a wide range of centrally-located restaurants and bars and it is also good news that prices have dipped in popular Caribbean islands.'

Japan, Jamaica and St Lucia are among the destinations in hot demand according to the latest bookings trends from Travelbag.

Compared with a year ago, bookings are up almost 23 per cent for Japan, nearly 27 per cent for St Lucia and a massive £63 per cent for Jamaica.