The Post Office recently published its findings for the annual survey 'Long Haul Report'. The study ranks 32 countries from cheapest to most expensive, based on prices of the most commonly bought items on holiday. The Post Office assesses the prices of 11 basic tourist purchases such as drinks, books and suncream, as well as a 3-course meal for two including a bottle of wine.
Sri Lanka was revealed to be the cheapest destination overall for the third year in a row, whilst Vietnam overtook Thailand as the cheapest destination in the Far East, and ranked second cheapest overall.
Popular Southeast Asian countries Thailand and Malaysia both dropped down the rankings - with Malaysia recording record price rises of 40%.
Mexico proved to be the cheapest destination in the Americas, with a beer costing just £1.89, and the Post Office added that there has been a 40% increase in demand for Mexican currency over the past year - demonstrating the success of its tourism industry.
The study revealed that Egypt is recovering well from the Arab Spring crisis, as resort prices have decreased and made the large tourist resorts even more attractive in these difficult financial times.
The most expensive destination in the Post Office's survey was South Korea - with a glass of wine there costing £5.37.
Find your flights to Sri Lanka - the cheapest destination of 2012 - with the easyvoyage.co.uk search engine.
The editorial team.