SPAIN STILL NUMBER ONE HOLIDAY DESTINATION.

New figures have named Spain as the top EU destination once again, showing that despite the economic climate, the country remains the dream spot for many tourists. Euro stat found that in 2011, 13 per cent of all outbound trips in Europe where made to Spain, with Italy and France coming in second place (nine per cent respectively). These figures do not include holiday makers outside of the EU and actual visitor numbers are likely to be much higher.

The most popular areas for investment are Alicante, Malaga, Barcelona, the Balearic Islands and Madrid. For those interested in the holiday let market, selecting the right location is integral. The Costa del Sol and Costa Blanca have proven particularly sought after among investors and holiday makers.

It was also revealed that Spain is the preferred choice among Portuguese, British and French tourists, with market shares of 39 per cent, 21 per cent and 18 per cent respectively. This flies in the face of most research, which indicates it is in fact people from the UK that make up the majority of travelers in Spain.

These figures will no doubt be welcomed by Spaniards, who have been faced with a deluge of bad news over the coming years, thanks to the recession. What's more, they indicate investors looking to enter the holiday let market should set their sights on Spanish property, to benefit from low real estate prices and high demand.

Data shows that many foreign buyers are already capitalizing on the assets the country has to offer. Spain's Ministry of Development revealed overseas buyers upped their investment in real estate by 13.7 per cent in 2012, equating to €6,336 million worth of property transactions on private homes. This is considerably greater than the €5,573.3 million noted in 2011.

Over the last quarter of 2012, activity was particularly strong, with overseas investors buying 47 per cent more homes than the same time in 2011. Some 13,873 properties were bought by foreigners between October and December. This appetite for Spanish real estate shows little sign of abating anytime soon, and non-residents of the country have been increasing their market share for six consecutive quarters.

COSTA BLANCA IN TOP FIVE CHEAP HOLIDAY DESTINATIONS

Despite sterling taking a pounding against the euro this year, the cost of spending abroad has fallen dramatically at many destinations, according to the Post Office Holiday Costs Barometer.

It means meals out, drinks and self-catering groceries at many popular resorts will be significantly cheaper. The research shows prices in Spain have plummeted by up to 20 per cent since last year.

Portugal pipped Spain’s Costa del Sol to the top spot in the seventh annual travel money league thanks to its low costs of food and drink.

It was closely followed by the Costa Blanca, Spain, Bulgaria and Palma Nova in Mallorca in the top-five cheap holiday destinations.

The costs of 10 standard items - - coffee, beer, wine, cola, water, suncream, newspapers, insect repellant, cigarettes and a meal - are used to set the barometer.

The cost of a basket of goods in the Costa Blanca were £47.14.

The cheapest place in the top five resorts to buy a cup of coffee is the Costa Blanca at 75p.

The research shows prices have tumbled in the Costas, down around 20 per cent compared to last year.

Prices have been dropping in many European resorts because of the effects of the eurozone crisis as they vie for overseas custom to boost their ailing economies.
Andrew Brown, of Post Office Travel Money, said:

"The pound may be worth less in Europe than a year ago but fierce competition means that lower prices in several of the resorts we surveyed can easily offset the falling value of sterling."

Taking some time to check out resort costs and add them to package prices to find the best holiday comparison and overall deal will pay dividends this summer. This really is the year to do some 'sterling' work before booking a holiday.

"Be prepared to swap destination or switch to a cheaper resort within the same country."

Mr Brown said the "continuing volatility" of sterling means holidaymakers should "budget carefully".

He said: "Running out of cash and having to use an overseas ATM or pay on a card that incurs extra charges could pack an unpleasant punch when the statement arrives.

"Allow time to buy foreign currency before leaving home because changing money at the airport means losing out by getting a poor rate."

Most expensive resort in the list was the Jumeirah region of Dubai in the United Arab Emirates where the items cost £103.23.

Italian destinations Sorrento (£101.79) and Tuscany (£94.92) were the next dearest.

Travel expert Simon Calder said:

"Wherever you are in Europe it's well worth seeking out the best value. Traders are being very competitive."