British travellers concerned by the falling value of the pound against the euro should head to South Africa. Sterling has slipped by 13% against the euro over the past year, making destinations such as Italy and Greece increasingly expensive. Over the same period, however, it has risen against the South African rand by 11%, to 14.77.

Researchers at the Post Office examined the cost of goods and services, including car hire, eating out, alcohol and cigarettes, and found many prices in South Africa were less than half those in Europe. Even in America, where the value of the dollar has slumped, most prices were higher than in South Africa. Sure, there’s the small matter of flights - but the gap between the bills for a full-on African adventure and a boring week on a Benidorm beach is getting smaller.

A three-course evening meal with wine, for two people, now costs an average of £27.26 in South Africa, compared to £41.28 in Italy and £37.15 in both Greece and the USA. An equivalent meal in the UK costs an average of £55.

Car-rental prices vary enormously.

Bargain travel guide to South Africa

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Inside South Africa's townships

Martin Wroewill will never forget his family’s holiday in the townships of South Africa; nor, he hopes, will his kids

BACKGROUND

• Table Mountain: a tough climb?

• Is the Table Mountain cable car safe?

• The best holiday bargain? South Africa

• Is Cape Town safe?

• Dom Joly in the Cape

Related Internet Links

• Research features from our South Africa section

Related Links

• Inside South Africa's townships

A day’s hire of a small family car costs £13.63 in South Africa, against £57.79 in Spain, £24.77 in Greece, £27.86 in America and £38 in the UK.

Some destinations remain good value despite their currencies strengthening. In Thailand, the baht has risen by 13% against the pound in the past five years, but goods and services remain cheap. An evening meal for two costs just £17.69 – the same as the price of a day’s car hire.

In Turkey, where there has been a 9% rise in the value of the lira, prices remain low by UK standards, with a meal for two costing £29.04, compared to £27.55 in 2007.

South Africa is becoming more popular with British visitors as a result of low prices. Fleewinter, which offers house and apartment rentals, says its bookings are up by 10% on last year. Areas such as Bloubergstrand, to the north of Cape Town, are particularly good value: a three-bedroom house overlooking the beach, with views of Table Mountain, costs £800 per week.

Other destinations that remain good value are those where the local currency is tied to the US dollar, such as Barbados, Jamaica and St Lucia.

One destination to avoid is Malta. Prices rose by about 10% with its changeover to the euro, so, combined with the fall in sterling, Malta has effectively become 17% more expensive in the space of four months.

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