It looks like Spain could be the place to go for the Brits following evidence that resort prices have crashed by as much as 40 per cent compared to five years ago.

A fall in local prices on everything from a restaurant meal to suncream has combined with the fact that the pound is at a two year high against the euro to make the Costas more affordable.

The claims come from an annual survey conducted by the Post Office, which measures the prices of eight items in resorts across 33 destinations around the world.

Spain comes out as the second cheapest destination with a price of £37.72 for the eight items, while Sri Lanka, which has seen serious political unrest, was the best value at just £27.95.

At the other end of the scale was Australia at a staggering £115.69 for the same items, together with Barbados, Singapore and New Zealand. So, maybe not a good idea to go to any of these destinations in a hurry!

The number of visits by Britons to Spain has slumped by more than three million over the past five years, coming down to less than 10.5million.

High prices, the cost of living squeeze and a desire among Britons to try new and more exotic locations have all played their part in the fall.

However, the Post Office research suggests Spain will now become more attractive, particularly at a time when people are desperate to save money.

The firm's Holiday Money Report concluded: 'Resort prices in the Costa del Sol are now 40per cent lower than five years ago, when we conducted the first price barometer.

Another place that has seen a tourism boom in recent years on the basis of its perception as a cheap option is Turkey. This year, however, it only placed 17th in terms of the cheapest option, while it was 60per cent more expensive than Spain.

The Post Office head of travel money, Sarah Munro, said: 'Given that sterling is worth around 20 per cent more than a year ago against the Turkish lira, we expected to see a lower barometer cost for Turkey, especially as the country had a disappointing 2011. 

'However, we were surprised to find that local costs have actually risen by 21 per cent and it is only the strong sterling exchange rate that is masking that increase.

Italy came out as the most expensive European destination with the basket of items costing £89.03.

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