Holidaymakers reading reports of the worsening euro exchange rate should not panic. The pound may have performed dismally against the euro recently, but there are plenty of destinations slightly farther afield where sterling has fared better.

Flights to long-haul destinations may cost a bit more, but competitive exchange rates and cheaper prices locally bolster the argument for looking outside the eurozone for a family break this summer.

Here Times Money identifies the five holiday destinations where the local currency has fallen the most against the pound over the past couple of years.

UNITED STATES

Britons flooded over to the US last Christmas to pick up cut-price gifts after the exchange rate peaked in mid-November at $2.11 to the pound.

Although the pound has fallen slightly, you can still pick up $1.92 to the pound at www.travelex.co.uk, with rates up 5.49 per cent on this time last year, making the US excellent value for holidaymakers.

Florida was the third-most-popular long-haul destinations for British families last year, according to the Association of British Travel Agents (Abta). The Post Office Holiday Costs Barometer, which compares a basket of goods and services across popular holiday destinations, found that day-to-day costs are also lower than in the eurozone. A basket of ten items, such as suncream, coffee, beer and a three-course meal in a restaurant, costs £58.69 in Florida, compared with £59.24 in Spain, the cheapest country in the eurozone.

Helen Warburton, of the Post Office, says: “Families travelling further afield will get excellent value this year. The pound is still strong against the US dollar and the new open skies agreement introduced this month should mean cheaper flights, too.”

Available now: Seven days in Orlando, Florida, at a three-star hotel - £339 per adult and £249 per child, based on four people. Price includes car hire. Flying from Gatwick on Tuesday. Call 0844 8007799, or go to www.airtours.co.uk.

SOUTH AFRICA

The pound has climbed 5.5 per cent against the rand in the past year and almost 26 per cent since 2006. Chris Humphrey, of UKFX, another foreign-exchange specialist, says: “The rate is getting better and better, but the rand is very hard to predict and can fluctuate widely in the short term. At the moment, however, the rate is good.”

The exchange rate means that hotels are cheaper, along with holiday staples such as food and drink. The Post Office's basket of goods and services was 50 per cent cheaper in South Africa than Spain.

Available now: Five nights at the Southern Sun Waterfront, Cape Town, bed and breakfast including BA flights from Heathrow with resort transfers - £969 per adult and £649 per child (aged 2-11), based on four sharing. Prices for June. Call 01306 747008, or go to www.kuoni.co.uk.

THE CARIBBEAN

Riding along on the continued weakness of the US dollar, sterling is 13 per cent stronger than the Jamaican dollar, which is tied to the US currency, than in 2006 and almost 2.5 per cent stronger than a year ago, according to Post Office Travel Services. The Post Office's basket of goods was cheaper in Jamaica than in the eurozone, Turkey and the US.

In Barbados, which also ties its currency to the US dollar, visitors will receive B$3.62 to the pound. Sterling is 6.4 per cent stronger against the Barbados dollar than in 2006.

Available now: £349 per adult and £349 per child, based on two adults and two children sharing one room for seven days at a three-star hotel in Negril, Jamaica, departing from Gatwick on May 12. Available online only at www.cosmos.co.uk.

TURKEY

This destination has been growing in popularity among British holidaymakers in recent years. Figures from Abta show a 10 per cent increase in visits last year compared with 2006. Furthermore, Turkey is the most-searched-for holiday destination on lastminute.com so far this year, up from 20th last year.

Travel experts have put this down to an increasing number of flights and low prices when you arrive. Food, drink and activities are cheaper than in the eurozone and Anthony Rice, of Travelex.co.uk, says: “Your money certainly goes a long way in Turkey.”

Sterling is 5 per cent stronger against the Turkish lira compared with this time two years ago. You can buy 2.39 lira for £1, compared with 2.27 in 2006. However, this time last year the lira stood at 2.50 to the pound.

Available now: Seven nights in Marmaris, £228 per adult and £168 per child, based on four sharing a three-star self-catering apartment, departing Gatwick on Tuesday. Call 0871 4238560, or go to www.cosmos.co.uk.

EGYPT

The Post Office Holiday Costs Barometer found Egypt to be one of the cheapest holiday destinations this year, beaten only by South Africa and Thailand. The basket of goods and services that would cost £59.24 in Spain would set you back only £46.96 in Egypt.

The exchange rate for the Egyptian pound has worsened slightly over the past year, falling from E£10.13 to the pound last year to E£9.27 now. However, the low cost of goods and services in Egypt means that the country remains an attractive destination.

Available now: Return flights to Cairo with BA for two adults and two children are £279.50 per person based on May 17 departure from Heathrow. The flights are available online at www.expedia.co.uk.

Cut-price cover

Travel insurance policies covering countries anywhere in the world can be more expensive than those limited to Europe. However, families considering a long-haul break can cut the cost of their cover dramatically by going online and shopping around, instead of purchasing insurance from a travel agent.

Insureandgo.co.uk, the internet-only insurer, charges £80 for its silver multi-trip annual family policy, including £5 million of medical expenses cover and £1,500 for lost baggage.

On Moneysupermarket.com, the comparison website, worldwide multi-trip annual cover starts at £40. Marcus Hearn, for example, charges £40.30 for a family of four, with £5 million of medical expenses cover and £3,000 for baggage. The policy is one of the cheapest, but it does have a high excess on claims.

Remember to check the small print before buying a policy, as the level of cover can vary widely.