The world's cheapest long-haul destination? It might surprise you

Tokyo has usurped Cape Town to become the cheapest long-haul destination in the world, according to new research.

It is the first time in 10 years that the Japanese capital has taken top spot in the global rankings conducted by the Post Office, and is more remarkable given the fact it was 27th just four years ago.

Calculating the “cost” of a holiday using a shopping basket of in-resort expenditures – including a three-course evening meal, a cocktail and a cup of coffee – a cocktail and a cup of coffee, the Post Office found that prices in the Japanese capital had fallen 23 per cent in a year, thanks to strong competition between restaurants, bars and cafes, plus downward spiral of the yen.

On the contrary, prices in Cape Town have risen 32 per cent, demoting the South African city to second place; Mombasa, the Kenyan capital, ranked third, while Colombo, Sri Lanka, came fourth, and Hoi An in Vietnam fifth.

According to the survey, Tokyo offers the cheapest average evening meal for two, including a bottle of wine, at £35.02, remarkable given the city boasts more Michelin-starred restaurants than anywhere else in the world.

The Post Office found that costs had fallen in six of the 10 cheapest destinations in the last 12 months.

Four destinations to lose their place in the top 10 thanks to rising prices, included Phuket in Thailand, where costs were up 17 per cent in 12 months. Prices in Cancun, Mexico, have risen 30 per cent, said the Post Office.

At the other end of the scale, Rio de Janeiro in Brazil was deemed the most expensive long-haul destination, with the Post Office’s basket of items costing more than three times more than in Tokyo. Jumeirah Beach, Dubai, was deemed second dearest, followed by China Town in Singapore.

“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,” said Andrew Brown of the Post Office.

“Fortunately, price falls in many UK favourites mean that 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.”

Brown was referring to the price falls in St Lucia (down 25 per cent) and Jamaica (down 24 per cent). In Antigua, prices fallen 27 per cent in 12 months.

The region will be particularly keen to encourage tourism in the wake of the damage wrought by Hurricane Irma. A spokesperson for the Caribbean tourist board said fewer than 10 per cent of the region’s hotels and resorts are set to be closed for longer than a week and urged holidaymakers to stick to their travel plans.