By Oliver Smith

Telegraph.co.uk

British families heading to several European destinations this summer will find their budgets stretching further, with prices at shops and restaurants in Portugal, Greece and Cyprus at least 20 per cent down on last year.

According to the Post Office’s Family Holiday Report, eating and shopping in the majority of popular European destinations will be cheaper in 2010, thanks in part to sterling’s recent rise against the euro.

The study compares the total cost of a dozen beach holiday purchases – including sun cream, a family meal, a bottle of beer and hire of a sun lounger – in 12 European countries.

Portugal, Bulgaria and mainland Spain provided the best value, with the 12 items costing respectively £68.80 (down by 30 per cent compared with 2009), £73.32 (down 4 per cent) and £78.28 (down 9 per cent) respectively.

Turkey, often considered a budget alternative to Eurozone countries, was one of the most expensive destinations, with the items costing £115.47 in the resort of Olu Deniz.

France and Italy, where the 12 items cost £133.80 and £141.08 respectively, were the most expensive.

“While Portugal and Spain have slashed prices to attract back visitors, France seems less affected by last year’s exodus from the eurozone and prices there are now higher than a year ago,” said Sarah Munro, head of travel money at the Post Office.

“Even more surprising, Turkey is not now the cheap destination it once was. Prices for family beach holiday items are up 12 per cent this year – a trend partly explained by the 10 per cent fall in sterling’s value against the Turkey lira.”

Despite falling prices in several Eurozone countries, a study by the tour operator Co operative Travel suggests that traditional Mediterranean resorts will no longer be the preferred destinations of British holidaymakers by 2012.

Bookings in the western Mediterranean have fallen by around 11.6 per cent this year, it says, with Spain, France and Italy losing ground to Morocco, Egypt, Tunisia and Turkey.

Co-operative Travel predicts that by 2012 more than 38 per cent of British package holidaymakers will take a holiday in one of these four countries.

The original article and charts available here.

*The title of the article has been changed by Novinite.com