Portugal has been named as the world’s best value holiday destination for Brits, according to the latest report from the Post Office. The country recorded a 49 percent drop in holiday costs compared to last year in the annual Post Office Travel Services Holiday Money Report. This was based on the total cost of eight common holiday buys (listed below). “It is great to see such an affordable option in Europe – especially in the tough economic climate, when people need it most,” said Sarah Munro, head of travel money at the Post Office. Spain, Czech Republic, Bulgaria and Sri Lanka followed Portugal as providing the cheapest in-destination prices. Canada, Hong Kong and Australia were some of the most expensive. The report compares the cost of a cup of coffee, bottle of beer, bottle of cola, 1.5l bottle of water, sun cream, insect repellant, pack of cigarettes and an evening meal for two.