Top 23 cheap holiday destinations: stretch your pound in 2023

If you’re looking for cheap holiday destinations, this article could end up saving you money in a way you might not have previously considered.

When you’re looking  to book a cheap holiday somewhere, you probably automatically think about comparing travel and accommodation costs in order to get the best deal, right?

However, when it comes to budgeting for a holiday, there are other things you should look into. Have you ever considered looking at how much you’re likely to spend while you’re there to see how far your pound will stretch in different holiday destinations?

If you’re searching for cheap holiday destinations in a particular part of the globe, be it Europe, Africa, Asia, South America or the Middle East, it might be worth comparing destinations where you’ll get more for your travel money.

This is based on both the prices of holiday essentials and the respective exchange rate deals available. It could end up saving you a fair bit, especially if there’s little difference in terms of transport and accommodation costs between the destinations you’re looking at.

Say you’re planning a holiday to western Europe. There might not be that much difference in terms of the cost of flights from the UK and accommodation in respect of different countries you’re considering.

However, you could end up paying far more for holiday essentials in one destination compared with another. This could make a significant difference to the overall cost of your trip.

If your accommodation board basis means you’re going to be eating out every day of your holiday, what you spend while you’re there is quickly going to rack up.

For a family of four, for example, on a two-week break, this is likely to cost you a lot of money, so finding somewhere where you’ll get more for your pound could save you a lot.

To determine the cheap holiday destinations where your pound will stretch further, we've used the 2023 Post Office Holiday Money Report. More on that in a minute.

Why it’s worth looking at how far your spending money will stretch

With demand for holidays abroad around pre-pandemic levels, it means the cost of a holiday is on the rise.

Higher package prices and increased resort costs, coupled with the ongoing cost of living pressures, mean Brits who want to travel abroad are thinking about how not to bust their holiday budget.

Travel and accommodation costs are likely to be the biggest factors in determining where the cheapest holiday destinations for you are.

However, checking how far your pound will stretch in various destinations might be the deciding factor if there’s little difference in the cost of the actual holiday to destinations you’re considering.

That’s where the Post Office Holiday Money Report 2023 comes in. If you’re looking for budget travel options, it’s worth looking into.

What is the Post Office Holiday Money Report?

The Post Office produces their Holiday Money Report every year, featuring a list of destinations with the best value for money for holidaymakers. Findings are based on currency exchange and the strength of the pound in respective destinations, plus prices of holiday essentials.

This year's report surveyed 40 destinations from around the world. Factors included in pricing comparisons include meals, drinks, and holiday essentials Brits usually buy while they're away.

Eight items were chosen as being representative of items UK tourists are likely to buy, with the prices cross-checked by Post Office researchers. They are:

Despite sterling falls against many currencies (as of March 2023), the South African rand is one of a clutch which have plummeted in value against the pound, meaning you’ll get more for your money when you exchange currencies.

Other destinations where holidaymakers will gain more currency for their pounds include Egypt and Turkey.

Between March 2022 and March 2023, the Egyptian pound lost at least half its value, meaning visitors had 53.4% more money to spend than the previous year. 

Falls in the value of sterling and inflation abroad mean prices have risen in most countries, but you can still strike a bargain.

Six of this year’s 10 best value destinations have seen a reduction in the cost of the Post Office Barometer Basket.

It found Cape Town is the holiday hotspot where your pound will stretch the furthest in 2023. Prices there are down 8.4% on spring 2022 levels.

The top cheap destinations by continent

We’ve decided to group these cheap holiday destinations by continent as, for example, the cost of flying to Bali compared to Spain will far outweigh any difference in the cost of buying holiday essentials in the two destinations.

If you’re looking for cheap places to go on holiday in a specific continent or region, the following information could help you cut the cost of your trip.

Remember, if you’re simply looking for the cheapest holiday destinations overall, you’ll need to factor in transport and accommodation costs too.

Why not save on travel, accommodation, currency and more?

While this article focuses on savings you can make while you’re at your holiday destination, we couldn’t pass on mentioning what other aspects of your holiday you can save on with TopCashback.

Book flights, accommodation and holidays online through TopCashback and you can make considerable savings with the likes of TUI, Booking.com, Hotels.com, Expedia and British Airways.

There are also plenty of other deals for your holiday, from car hire and airport parking to getting the best travel insurance and currency exchange. With deals on site for leading brands like Europcar, Holiday Extras, Confused.com and Post Office, you’ll soon be saving and having even more to spend while on holiday.

Right, let’s get back to our list of the best picks for cheap holiday destinations in 2023.

Europe

Budget travellers are likely to stay close to home when looking for cheap foreign holiday destinations, meaning Europe could be the starting point for many. But what are the most affordable holiday destinations in Europe for 2023? Whether you’re looking for beach resorts in one of the Balearic Islands or Canary Islands, or somewhere in Eastern Europe ideal for an extended city break, the following list will give you some insights into cheap holiday destinations in Europe.

Sunny Beach, Bulgaria
8 item total = £58.30

Sunny Beach in Bulgaria is the Black Sea’s most popular resort, boasting a huge five-mile strip of powdery golden sand.

If you’re looking for a lively resort with plenty of hotels, restaurants, bars and clubs, as well as fantastic watersports, it’s a great choice.

However, while it’s a purpose-built modern holiday town, you’ll also find UNESCO-certified Nessebar just a 15-minute drive up the road.

Algarve, Portugal
8 item total = £59.95

The Algarve remains one of the top places to holiday in Portugal and with good reason. Featuring some of Portugal’s most beautiful coastline and beaches alongside a temperate climate, it’s a hit with Brits in particular.

Situated in the southernmost region of Portugal, the Algarve sits on the Atlantic Ocean, bordering Spain at the east.

With its golden beaches, cobalt waters and dramatic cliffs, it’s a place to enjoy the sunshine and a relaxing pace of life.

You can take your pick from Blue Flag beaches, some of the best golf courses in Europe, old towns and swanky resorts like Vilamoura and Albufeira. There’s plenty of nightlife too.

Topping the list for cheap destinations in Spain in 2023 is Costa del Sol.

Spain’s sun coast (yes, that’s what Costa del Sol means) is one of the most popular travel destinations in Europe.

Located in southern Spain, it’s renowned for Blue Flag beaches and a close-to-perfect year-round climate which offers more than 300 days of sunshine each year.

Whether you want a relaxed atmosphere, stunning beaches, delicious food or exciting nightlife, you’ll find all of that and more on the Costa del Sol.

You can choose from five main beach resorts — Torremolinos, Fuengirola, Estepona, Benalmadena and the upmarket Marbella.

Paphos, Cyprus
8 item total = £78.08

Old meets new in Paphos, Cyprus. There’s a compelling combination of ancient Greek temples and colourful mosaics mixed with lively nightlife that makes for a fun-filled holiday.

In the Old Town too, you’ll see the traditional cobbled streets and quaint cafes right alongside the modern harbour alive with bars and restaurants.

While the beach is compact, it’s conveniently located in the town centre. Sink your toes into the warm sand or stay further back to enjoy the view from the wooden decked area. In the town itself is the UNESCO Tomb of the Kings, underground Egyptian catacombs dating back to the 4th century.

Corfu, Greece
8 item total = £81.35

With sandy beaches, traditional town squares and resorts to suit every traveller, Corfu covers summer holidays from every angle.

Unlike many other Greek islands, Corfu is green. In fact, it’s known as the Emerald Island and is the second largest of the Ionian Islands.

You’ll find it covered in cypress trees, olive groves and wild flowers. There are quieter resorts like Gouvia and San Stefanos in the north, but if you’re after a faster pace, Sidari and Roda offer karaoke bars and more in the way of nightlife.

Funchal, Madeira
8 item total = £85.02

Funchal is the capital of Madeira and the historic town is best known for its stunning gardens and delightful cobbled streets.

Discover outdoor pools and awe-inspiring mountain scenes, while if it’s chic rooftop cocktail bars and food which will tempt your taste buds you’re after, the city comes alive in the evenings.

If soaking up the sun is what you go on holiday for, there are four beaches which lie around 25 minutes’ walk from the town.

A long promenade stretches back to the centre, with small pebble beaches, pools and a lido dotted along the route.

Majorca, Balearic Islands
8 item total = £86.03

If you’re jetting off with the family, Majorca offers plenty of resorts packed with waterparks and fun entertainment. Equally, those looking for a slice of luxury for a week or two can enjoy VIP beach clubs, upscale ports, and hidden hillside coves.

Go exploring the rugged mountain ranges and lush countryside, while if you fancy doing a bit of shopping, you should head to the bustling capital of Palma.

There are more than 200 beaches too, whether you want long sandy stretches or something more private.

 Porec, Croatia
8 item total = £88.08

Porec, on Croatia’s Istrian Riviera, offers a classic blend of lazy days and lively nights. Stretching across a peninsula, it has everything from Roman architecture, Venetian houses and a Byzantine basilica to restaurants, bars and clubs.

All of this is set against a backdrop of quaint hilltop towns and olive groves, while if you want beaches, those between Porec and Zelena are within a 30-minute road train ride.

Porec is also a great base from which to explore Rovinj and Pula, which are situated on the Istrian Peninsula. If history’s your thing, Pula has a huge Roman amphitheatre.

Sliema, Malta
8 item total = £90.85

From beautiful seaside scenery to a vibrant cafe and restaurant scene, Sliema has a lot to offer those looking for a holiday destination in Malta.

Located to the north of the capital of Valletta on a peninsula on the eastern slide of the island, it’s also very much worth exploring in its own right.

A 3km promenade, which stretches all the way to St Julian’s, is perfect for a leisurely stroll as you take in the beautiful views of the Mediterranean. It’s also a great sport for watching the sunset with a glass of wine in hand.

There’s also a great cafe culture in Sliema, plus a great range of fantastic restaurants where you can indulge in the local cuisine.

Budapest, Hungary
8 item total = £97.29

If it’s a European city break you’re after, the capital city of Hungary is one of the most stunning destinations in the whole of eastern Europe.

Set on the majestic Danube river, it boasts stately palaces, castles and museums, while at the same time offering plenty of nightlife in the form of bars and clubs.

Take in the sights by climbing to the citadel on Gellert Hill or marvel at the imposing Buda Castle. If you’re exhausted after too much exploring, you can relax in thermal baths, while if you’ve still got plenty of energy, why not sample the city’s nightlife district?

While you might think of Prague in terms of history and architecture, there’s much more to the capital city of the Czech Republic.

Just as you might wonder in awe at sights like Powder Tower, St. Vitus Cathedral and Kinsky Palace, you’re also as likely to be impressed by the trendy boutiques, swish hotels and chic cocktail bars which are peppered throughout this impressive city.

However, it’s the city’s old-world beauty and charm which it’s renowned for, with its bridges, spires and hilltop castles combining to create a magical setting for a getaway.

Africa

Are you on a budget and wondering where to go in Africa in 2023? If so, we might be about to give you a helping hand.

Whether you want a beach holiday where you can lie on golden sand or a base from where you can explore the continent’s stunning scenery, here are the places in Africa where your pound will stretch further.

As we’ve mentioned, Cape Town in South Africa tops the list of holiday destinations where you pound will stretch furthest in 2023.

Cape Town is one of the most beautiful cities in the world, boasting mountains, beautiful beaches, history, wildlife, vineyards and a whole lot more.

Table Mountain is a must-see attraction and you can choose to either hike up it or take the cable car. It’s also close to the national park, which extends over much of the peninsula.

You’ll see penguins at Boulders Beach or you can explore Africa’s southwestern tip at Cape Point, but Cape Town isn’t just about scenery and wildlife. There’s also a vibrant nightlife and you can party the night away in Long Street.

If you’re looking to escape the cold, it’s a great winter sun destination too.

Mombasa, Kenya
8 item total = £58.96

Situated on Kenya’s tropical east coast, bordering the Indian Ocean, it’s the beaches which are the stars of the show here.

You’ll find white sands and watersports, with the warm, clear waters excellent for snorkelling and diving.

Away from the beaches, you’ll find the 16th century Fort Jesus and Mombasa’s old town, where you can explore Swahili houses, mosques and colourful markets.

Sharm el-Sheikh, Egypt
8 item total = £73.32

If you’re dreaming of the perfect beach destination, Sharm el-Sheikh could very well be it.

Stunning beaches, magical coral reefs and some of the best dive spots in the world make this Red Sea resort a popular destination for those wanting to soak up some sun.

It’s ideal for a relaxing break or for those who are looking for a bit more adventure. You can spend your time sunbathing and swimming or go exploring the old town, the region’s famous historical sights or the desert.

Asia

Want to know which Asian countries are the cheapest for buying holiday essentials in 2023? If so, here are six cheap Asian holiday destinations, as ranked in the Post Office Worldwide Holiday Costs Barometer.

You’ll be pleased to see some of the most popular holiday destinations in Asia, like Marmaris and Phuket, are included — as are some places you might not have previously considered for a holiday.

Marmaris, Turkey
8 item total = £57.59

A popular tourist destination, Marmaris really does offer the best of both worlds — some of the most beautiful beaches on the Mediterranean coast and a buzzing nightlife scene too.

It’s a favourite with many travellers and it’s easy to see why. You can explore idyllic coves, waterfalls and mountains, while there are waterparks for the kids and grand bazaars for anyone who loves a bit of holiday shopping.

At night, you can go clubbing or check out the all-singing, all-dancing cabarets.

Hoi An, Vietnam
8 item total = £59.99

Hoi An is a popular choice to go to in Vietnam, and earned itself UNESCO World Heritage status in 1999. 

If it’s on yours, you’ll be pleased to discover it’s one of the amazingly cheap destinations in Asia to visit in 2023.

While traditional and laid back, it’s jam-packed full of sights, the most photographed of which is the beautiful Japanese Covered Bridge.

Part of its charm lies in its narrow streets with wooden-fronted shophouses and hanging lanterns, for a magical view at night along the banks of the Thu Bon river.

Kuta, Bali
8 item total = £68.10

When it comes to cheap island holiday destinations, Kuta — a beach resort on the Indonesian island of Bali — tops the list on the Post Office Worldwide Holiday Costs Barometer.

Kuta is renowned as somewhere where you can catch jaw-dropping sunsets.

A long-established magnet for surfers and backpackers, the beach is now lined with luxury hotels, while you’ll find plenty of vibrant bars and clubs to hit at night if that’s your thing.

If it’s a more relaxing getaway you want, Kuta is a great place. It’s a world-famous yoga centre, while it's also packed full of affordable spa centres.

 Tokyo, Japan
8 item total = £71.49

If you’re looking for a holiday destination which will give you an adrenaline rush, Tokyo could be the place for you.

However, while the world’s largest city is obsessed with the latest trends and fashions, and lit up by neon, it’s also a place which is fiercely proud of its heritage.

Step back from the frenetic main roads, with their traffic jams and crowds, and you’ll find tranquil back streets where small wooden houses are fronted by neatly clipped bonsai trees, plus many temples and shrines.

While a visit to Tokyo may be an assault on the senses, you can take time away from the hustle and bustle by visiting palaces, parks, shrines and museums. At the end of the day, you can also spend the night relaxing in uber-chic bars, restaurants and clubs.

Colombo, Sri Lanka
8 item total = £73

Sri Lanka’s sprawling capital offers glimpses of an intriguing and characterful city which lies slightly beneath the surface.

Colombo’s composition features a complete mix of buildings among each other, resulting in a unique blend of colonial and modern style. You’ll find quaint local cafes neighbouring office blocks, with religious shrines, churches, and temples woven in together. 

Explore the colourful bazaars of the Pettah for a taste of Sri Lankan culture and test your mettle with a high-speed rickshaw ride through the busy streets. 

A little out of the city, you’ll find deserted beaches, coastal resorts and national parks.

Phuket, Thailand
8 item total = £85.33

Phuket, the largest island in Thailand, offers something for everyone.

Choose between a host of cultural sights, rich jungles and lively towns, while there are plenty of beaches to relax on and soak up the sun.

You can spend lazy mornings by the pool and afternoons in peaceful temples, or plan exciting day trips and spend your nights sampling vibrant bars.

Step back in time in Phuket Old Town, visit the 45-metre tall Big Buddha and take in the amazing panoramic views or chill out on one of Phuket’s 30 beaches.

North America

North America has long been a popular holiday destination for British travellers.

Families with children can experience the magic of Walt Disney World Resort, while couples can enjoy a slice of island paradise when visiting the likes of Jamaica and the Dominican Republic.

Whatever you need from your holiday, here are the cheapest places in North America to visit in 2023.

 Montego Bay, Jamaica
8 item total = £87.71

Jamaica is one of the most popular of the Caribbean islands and its second city offers a perfect introduction to the island — white sands, pristine coral reefs and vibrant culture.

If you want your holiday to centre around bright blue skies and ice-white beaches, why not check yourself into one of the plushest hotels in Jamaica, which are a feature of the resort?

While there’s a different beach for every day of the week, you’ll also find plenty of shops, chain restaurants and themed bars.

Just off the coast is the marine park, which consists of nine square miles of coral reefs and mangroves. It’s a haven for divers and non-divers alike.

 Punta Cana, Dominican Republic
8 item total = £89.51

Beaches on the eastern edge of the Dominican Republic are rated among the best in the world, making Punta Cana an ideal location for those who love the feel of white sand and warm waters.

If you want to spend your time by the sea, soaking up the sun or learning to surf or scuba dive around coral reefs and shipwrecks, you can.

However, there’s plenty more to see and do. Punta Cana is home to more than a dozen golf courses, while if the countryside’s more your thing, you can have a guided tour of the rainforest.

At the end of the day, you can sip cocktails as the sun slips below the horizon.

 Orlando, USA
8 item total = £92.77

Orlando is the theme park capital of the world, with its collection of world-class theme parks drawing more than 70 million visitors a year.

Most are there for Walt Disney World Resort, which consists of 42 square miles of parks like Magic Kingdom, Epcot and Disney’s Hollywood Studios.

While Orlando itself usually gets ignored, it’s not called The City Beautiful for nothing. Downtown Orlando features lakes, tree-lined avenues, top-class museums and an amazing dining and nightlife scene.

Where will you be jetting off to?

If you’re searching for cheap holiday destinations to head off to this year, we hope this list will provide you with some insightful ideas of where your money will stretch further.

Of course, the cost of getting to — and staying in — a destination will have a massive impact on where you choose. However, it’s also worth looking at places where your holiday money will stretch further, especially if travelling in a large group and eating out a lot of the time.