UK holidaymakers will enjoy lower costs in two out of five popular destinations this year, according to a study.

The fall is driven by sterling’s year-on-year gains against 70 per cent of the top 40 holiday currencies, according to Post Office Travel Money.

The pound has strengthened by 9.4 per cent against the US dollar, 10.3 per cent against the Kenyan shilling and 17.3 per cent against the Turkish lira compared with January 2017.

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Long-haul destinations offer the largest decrease in prices as the stronger pound combines with lower charges in shops, restaurants and bars.

Prices have dropped 36 per cent in resorts at Dubai, 31 per cent in St Lucia and 27 per cent in New Zealand.

Japanese capital Tokyo is the second cheapest destination for UK tourists. Only Bulgaria’s Sunny Beach resort is cheaper.