$2 for £1 not enough to beat high US prices

High US dollar exchange rates of $2 for £1 are not enough to make a trip to America a cheap holiday option.

That is according to research out today from the Post Office looking at how cheap holiday destinations stand up when it comes to everyday items.

The Post Office survey finds the US was surprisingly expensive for items such as a bottle of beer or water, sun block cream and insect repellent.

However, the big savings on electronic items such as an iPod or PlayStation 3 that attract holidaying shoppers in the first place do benefit strongly from the exchange rate.

Out of the 15 countries included in the price comparison survey, the US was the most expensive destination, coming in at £69.41 for a typical range of holiday buys, ranging from cups of coffee and soft drinks in a bar to stamps, cigarettes and a three-course meal for two in a restaurant.

Spain was another country often considered a cheap holiday destination where prices were surprisingly high. Spain was the second-most expensive place to holiday, the same range of items costing £65.90, closely followed by Canada (£65.15), and France (£62.00).

At the other end of the scale, Bulgaria was found to be the top cheap holiday destination, the holiday items costing just £16.86. Second-cheapest was Egypt (£24.61), with Thailand (£29.21), South Africa (£33.41) and Portugal (£33.65) also in the top five cheap holiday hotspots.

"You have to be careful when comparing costs in different countries. It all depends on their relative cost of living and it pays to be aware that favourable currency rates – like those currently available for the US dollar - do not necessarily mean a destination will be cheap," warned Kevin McAdam, Post Office head of travel services.

"It's useful to compare the costs across Europe. Our barometer proves that one currency does not mean one cost. With a difference of £32.25 between the shopping baskets in neighbouring Spain and Portugal, it is clear that there are savings to be made depending on where you choose to holiday in Europe."

Post Office holiday costs barometer 2007

							Euro	Euro
ITEMS	Australia	Bulgaria	Canada	Croatia	Cyprus	Egypt	France	Greece
Cup of coffee - café/bar	£1.37	£0.23	£0.94	£0.90	£1.85	£0.20	£1.43	£2.14
Bottle of Heineken (or similar) - café/bar	£3.31	£0.77	£2.58	£1.61	£2.47	£0.39	£2.86	£3.57
Bottle of Coca-Cola - café/bar	£0.97	£0.39	£0.94	£1.31	£1.85	£0.29	£1.79	£1.43
Bottle of Evian (1.5litre) - supermarket	£0.79	£0.39	£0.79	£1.10	£0.92	£0.20	£0.13	£1.07
Nivea suncream (factor 15) – supermarket	£3.39	£1.55	£2.34	£4.82	£3.70	£0.98	£5.00	£4.29
Postcard and stamp for UK - tourist shop	£1.10	£0.39	£0.79	£0.55	£0.62	£0.29	£0.93	£0.71
Insect repellant – supermarket	£1.99	£1.16	£3.29	£2.31	£1.23	£0.59	£5.00	£2.14
Packet of Marlboro Lights cigarettes	£2.87	£1.55	£3.12	£2.01	£2.77	£0.59	£3.57	£2.14
English newspaper (Daily Mail/Express)	£1.68	£0.77	£3.40	£1.51	£1.23	£1.47	£2.00	£2.14
3 course evening meal for 2 in local restaurant	£35.29	£9.66	£46.96	£30.12	£24.66	£19.61	£39.29	£21.43
TOTAL COSTS	£52.76	£16.86	£65.15	£46.24	£41.30	£24.61	£62.00	£41.06

	Euro	Euro		Euro
ITEMS	Italy	Portugal	South Africa	Spain	Thailand	Turkey	US
Cup of coffee - café/bar	£0.64	£0.36	£0.53	£0.71	£0.79	£0.79	£1.58
Bottle of Heineken (or similar) - café/bar	£2.50	£0.93	£1.13	£1.79	£1.43	£1.97	£3.15
Bottle of Coca-Cola - café/bar	£2.14	£0.71	£0.76	£1.43	£0.48	£0.98	£0.79
Bottle of Evian (1.5litre) - supermarket	£0.21	£0.43	£1.13	£0.64	£1.27	£0.24	£3.15
Nivea suncream (factor 15) – supermarket	£6.43	£4.29	£4.54	£8.57	£2.38	£7.87	£2.63
Postcard and stamp for UK - tourist shop	£0.80	£0.36	£0.76	£0.57	£0.32	£0.39	£1.58
Insect repellant – supermarket	£2.86	£1.43	£3.02	£5.72	£4.77	£1.97	£1.58
Packet of Marlboro Lights cigarettes	£2.86	£2.14	£1.51	£2.32	£1.03	£1.97	£1.84
English newspaper (Daily Mail/Express)	£1.43	£1.57	£1.13	£1.29	£0.48	£1.18	£0.53
3 course evening meal for 2 in local restaurant	£28.58	£21.43	£18.90	£42.86	£15.89	£27.55	£52.58
TOTAL COSTS	£48.45	£33.65	£33.41	£65.90	£29.21	£44.91	£69.41