Tokyo named cheapest long-haul destination in the world

Tokyo has usurped Cape Town to become the cheapest long-haul destination in the world, according to new research.

It is the first time in 10 years that the Japanese capital has taken top spot in the global rankings conducted by the Post Office, and is more remarkable given the fact it was 27th just four years ago.

Calculating the "cost" of a holiday using a shopping basket of in-resort expenditures – including a three-course evening meal, a cocktail and a cup of coffee – a cocktail and a cup of coffee, the Post Office found that prices in the Japanese capital had fallen 23 per cent in a year, thanks to strong competition between restaurants, bars and cafes, plus downward spiral of the yen.

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On the contrary, prices in Cape Town have risen 32 per cent, demoting the South African city to second place; Mombasa, Kenya, ranked third, while Colombo, Sri Lanka, came fourth, and Hoi An in Vietnam fifth.

According to the survey, Tokyo offers the cheapest average evening meal for two, including a bottle of wine, at £35.02 ($A59), remarkable given the city boasts more Michelin-starred restaurants than anywhere else in the world.

The Post Office found that costs had fallen in six of the 10 cheapest destinations in the last 12 months.

Four destinations to lose their place in the top 10 thanks to rising prices, included Phuket in Thailand, where costs were up 17 per cent in 12 months. Prices in Cancun, Mexico, have risen 30 per cent, said the Post Office.

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