What’s the best value holiday destination for wine lovers?

British tourists seeking bargain prices when wining and dining abroad should set their sights on a city in the southern hemisphere, according to a report from Post Office Travel Money.

There may be some debate about what constitutes a holiday ‘essential’, but, according to the parameters of the Post Office’s annual Holiday Money Report, the key cost considerations are the following: a three-course evening meal for two with wine, bottle of beer, glass of wine, can of cola, large bottle of water, cup of coffee, suncream and insect repellent.

For a three-course dinner for two with a bottle of house wine, this year’s report found that Cape Town, South Africa is the best value city for Brits, costing an average of £35.80 (the full list of essentials was also the cheapest, at £51.44).

The costs faced by British tourists to South Africa have dropped dramatically in the last year, with Sterling now 15.7% stronger against the South African Rand than it was 12 months ago.

The second cheapest location was Sunny Beach, Bulgaria, coming in at £36.12 for two starters, two mains, two desserts and a bottle of something. In third was Portugal’s Algarve, at £39.30.

In 40th, the most costly dinner destination surveyed was the Icelandic capital of Reykjavík, where dinner and a bottle of wine for two came in at an eye-watering £135.87.

However, if it’s only the price of wine you’re concerned about, the least expensive place to go is the Algarve, where a 175ml glass will set you back £1.81. Spain’s Costa del Sol is second, with a glass costing £2.35.

By contrast, the most expensive of the 40 destinations surveyed was New York City, with a snifter costing £11.41.

With beer, Cape Town was also the cheapest destination, at £1.62 for a 330ml serving (a glass of wine was almost twice as much at £3.07). The most expensive was Dubai’s Jumeirah Beach, at £8.99.

It’s no secret that South Africa produces high quality wine, with the country’s expressions of Sauvignon Blanc performing particularly well at last year’s Global Sauvignon Blanc Masters.

On the other end of the price spectrum, Napa Valley was recently ranked the most expensive US wine region for a holiday.

Alternatively, if you’re on a budget and it’s just beer you’re seeking, here are the cheapest cities in the world to go for a pint.