Just when we thought summer was going to slip away from us again due to rising costs, the 19th Holiday Money Report 2025 from the UK Post Office has given us a pleasant surprise. It's officially the cheapest destination of 2025! In a world where a beer in New York costs almost as much as a dinner in Lagos (not the one in Nigeria, but the beautiful Portuguese one), the Algarve – the sunny cradle of Portugal – reigns supreme once again. And for good reason.
Officially the cheapest destination of 2025?! The British Post Office compared the costs of eight key tourist goods (dinner for two with wine, local beer, coffee, water, wine, coke, sunscreen, mosquito repellent) in 40+ destinations. But we've converted them into euros and dollars so that we don't all have to Google the exchange rate all the time. Pack your bags! So – this is officially the cheapest destination of 2025!
The 10 cheapest destinations in the world in 2025
| Destination | Cost / day |
|---|---|
| 1. Algarve, Portugal | 69 € (75 $) |
| 2. Cape Town, South Africa | 70 € (76 $) |
| 3. Tokyo, Japan | 74 € (80 $) |
| 4. Kuta, Bali | 78 € (84 $) |
| 5. Delhi, India | 81 € (87 $) |
| 6. Sunny Beach, Bulgaria | 83 € (89 $) |
| 7. Hoi An, Vietnam | 85 € (92 $) |
| 8. Prague, Czech Republic | 89 € (96 $) |
| 9. Phuket, Thailand | 89 € (97 $) |
| 10. Costa del Sol, Spain | 90 € (98 $) |
The price of beer and coffee – officially the cheapest destination in 2025
| Destination | Beer | Coffee |
|---|---|---|
| 1. Algarve, Portugal | 2,50 € (2,70 $) | 1,50 € (1,65 $) |
| 2. Cape Town, South Africa | 1,90 € (2,05 $) | 1,20 € (1,30 $) |
| 3. Tokyo, Japan | 2,10 € (2,30 $) | 2,00 € (2,15 $) |
| 4. Kuta, Bali | 2,20 € (2,40 $) | 1,30 € (1,40 $) |
| 5. Delhi, India | 2,00 € (2,15 $) | 1,00 € (1,10 $) |
| 6. Sunny Beach, Bulgaria | 1,50 € (1,65 $) | 1,10 € (1,20 $) |
| 7. Hoi An, Vietnam | 2,00 € (2,15 $) | 1,00 € (1,10 $) |
| 8. Prague, Czech Republic | 2,80 € (3,00 $) | 1,60 € (1,75 $) |
| 9. Phuket, Thailand | 2,50 € (2,70 $) | 1,30 € (1,40 $) |
| 10. Costa del Sol, Spain | 2,70 € (2,90 $) | 1,70 € (1,85 $) |
Why is the Algarve officially the cheapest destination of 2025 – the smartest choice for 2025?
Sun, sardines and a healthy dose of cynicism: the Algarve invites you to a vacation that is anything but banal.
When the world reminds us that nothing is cheap anymore – not even beer – comes Algarve like a fragrant breath of fresh air after a long hot day. And not only is it the most affordable destination of 2025, the Algarve is also the perfect blend of hedonism, cultural heritage and Mediterranean relaxation. It's a place where the only stress is the question: "Beach or pool?"
Where exactly is the Algarve?
Algarve stretches across the southwest of Portugal, along the Atlantic coast, where dramatic cliffs tower over golden sandy beaches, while in small fishing villages the pulse of life is still determined by the rhythm of sunset and fresh catch.
What to do (other than lying down)?
- Beaches: From the postcard-like Praia da Marinha to the surfing at Praia do Amado – each bay has its own character (and Instagram moment).
- Cycling trails and golf courses: The Algarve is a mecca for the active – or at least for those of us who like to pretend.Portugal
- Old town centers: Wandering the streets of Lagos, Tavira or Faro is not only romantic – it is also culinary educational.
- Sea trips: The cave formations at Benagil are almost as stunning as the price of beer in this region.
What to eat (and drink)?
- Cataplana: A fish pot that smells of the sea and olive oil.
- Grilled sardines: National sport. And yes, they go great with white wine.
- Cream puffs: Creamy desserts that justify another morning espresso.
- Local wines and beers: Fresh, cheap and very “drunk friendly”.
Conclusion? Algarve wins
Sometimes the answer to financial hardship is simple: swap your home patio for the sands of the Portuguese Riviera. The Algarve offers not only the most affordable vacation in the world, but also one of the most enchanting landscapes in Europe. Prices are low, but hearts are full. You can book your vacation here.
