Travel to the far east of Europe and your money will go further too

Rocketing prices and flight problems may have disrupted Turkey’s tourist trade in 2010, but it is back on top this year as the cheapest traditional holiday destination, according to new research by the website MyTravelCost.com. A 20 per cent drop in prices in 2011 means it is now possible to stay in an average hotel, eat in good restaurants and travel about for as little as £25 a day – good news for a country whose economy relies heavily on the tourist trade.

Despite being relatively affordable overall, Turkey has above average alcohol prices – possibly unsurprising in a majority Muslim country where the lions share of demand comes from tourists. The lowest alcohol prices in Europe are found in Moldova where a beer costs less than 50p and the most expensive in Norway at just over £7 a pint.

But it is Switzerland synonymous with money – banks, luxury watches, jewellery – where you will need the most spare cash, ranking as the most expensive destination in Europe. Overall prices are 60 per cent higher than in the UK, meaning a night in a hotel in Geneva will set you back a rather steep £190, compared to £100 in London. Even a basic lunch in the land of efficiency and chocolate costs nearly £10, more than the expense of a two-course meal in Poland, one of the cheapest destinations to visit.

Poland is joined by a host of Eastern European countries that dominate the budget end of the list. Belarus comes out rock bottom (or top, depending on how you look at it) with some of the cheapest prices in the world. Reports of civil unrest may make travel there unappealing to some tourists. But along with other former Soviet Union countries that join it at the cheap end of spectrum, including Moldova and Ukraine (where you can take an eerie tour of the Chernobyl disaster area) it is coming into its own as an affordable and interesting destination.

Some of these countries also benefit from neighbouring Russia where the cheapest fuel in Europe is found. As the world’s second largest producer of oil and with huge reserves that make it the world biggest fuel exporter, petrol prices can be kept to around 65p per litre. The majority of surrounding Eastern European countries have cheaper fuel than the rest of Europe and with the low of cost of living, Eastern Europe makes it an appealing destination for an alternative road trip. Popular Turkey has the most expensive petrol prices in Europe at almost £1.70 for a litre of unleaded.

The UK comes out 34^th cheapest of the 41 European countries surveyed. Possibly worrying news for a country that is losing out on big spending tourists like the Chinese to nearby France and Germany. France is only marginally cheaper than the UK but Germany is mid range at 26^th, with the average beer setting you back £2.50 compared with over £4 in London.

With prices steadily increasing we might all be best hopping on the plane to Moldova, before we’re hit with more increases in ADP next April, and enjoying the 50p beer there.