Beating Sunny Beach in Bulgaria and Spain’s Costa del Sol which came second and third respectively, The Algrave topped the list for the second year running.

The barometer compares the price of holiday purchases: dinner for two with wine, various drinks , sun cream and insect repellent and the Algarve came out lowest at 33.36 £. That’s 17p cheaper than Sunny Beach, where the same items cost 33.53£. Also more than £5 less than the Costa del Sol where you’d part with 38.79£.

The only non-European destination to make the top 10 was Tokyo.

Portugal has long been one of Europe’s best-value destinations ,here are some tips how to make your money go even further.

1. Eating out in Portugal is inexpensive and delicious. Ditch the touristy spots and go where the locals go to get the best value. Even in the big cities of Lisabon and Porto, you can get a high-quality lunch for decent price.

2.Same is with wine. Portugal is a wine-producing country, so it’s great value in local restaurants. You can bag a quality tipple in supermarkets for low prices.

3.Many of Portugal’s finest attractions, stunning beaches and historic villages, are free. Even the top sights won’t break the bank. Entrance to museums and landmarks averages €3–5 and on the first Sunday of the month they’re often free.

4.The big cities are walkable. Walking is the best way to discover their charms. When you need it, public transport is reasonable

5.Consider staying in a hostel. They’re affordable, but not dirt-cheap, so provide comfort and good conditions despite the lower prices.