Cape Town has been named the best-value winter-sun destination for 2026, giving African tourism a significant boost as travellers increasingly weigh everyday holiday costs alongside attractions, weather and accommodation when choosing international destinations.
The South African city took the top position in the latest Post Office Travel Money barometer, which compares the cost of common holiday purchases across popular warm-weather destinations.
Kenya’s coastal city of Mombasa placed second, meaning African destinations occupied the two leading positions in the ranking.
Tokyo, Colombo and Phuket completed the top five, followed by the Portuguese Algarve, Spain’s Costa del Sol, Tenerife, Penang in Malaysia and Punta Cana in the Dominican Republic.
Cape Town Records Lowest Basket Cost
The ranking is based on a basket of eight common holiday costs and experiences rather than simply comparing hotel prices or airfares.
Items examined include coffee, bottled water, sunscreen and insect repellent alongside the price of a three-course evening meal with wine for two people.
Cape Town recorded the lowest overall basket price among the destinations surveyed.
Its performance was helped by having the cheapest three-course evening meal for two within the comparison.
The methodology gives travellers an indication of how much they could spend after reaching a destination — an increasingly important consideration when accommodation and flights represent only part of the total cost of an international holiday.
Mombasa Takes Second Place
Kenya’s Mombasa finishing second adds another African destination to the top of the ranking.
The coastal city combines beach tourism with access to Kenya’s wider tourism offering, giving visitors an alternative to destinations in Europe, Asia and the Caribbean.
Having Cape Town and Mombasa in the first two positions suggests that African destinations can compete strongly on value as well as visitor experience.
For tourism operators, affordability can become a particularly useful advantage when travellers are comparing several destinations offering warm weather during the northern hemisphere winter.
Asia Maintains Strong Showing
African destinations may have claimed the first two positions, but Asia maintained a significant presence in the ranking.
Tokyo ranked third, Colombo fourth and Phuket fifth, while Malaysia’s Penang placed ninth.
The result demonstrates that value should not necessarily be confused with a destination simply being inexpensive.
A traveller’s actual costs depend on the combination of meals, drinks, everyday essentials and activities encountered during a visit.
That is why basket-based comparisons can produce results different from assumptions based only on airfares or accommodation.
European Resorts Remain Competitive
Traditional European sunshine destinations also maintained positions in the top 10.
Portugal’s Algarve ranked sixth, Spain’s Costa del Sol seventh and Tenerife eighth.
The Dominican Republic’s Punta Cana completed the top 10.
The geographical diversity of the ranking demonstrates how competitive international tourism has become.
Destinations are not only competing on beaches, landmarks and weather. They are also competing on the amount visitors must spend after arrival.
Value Becomes Tourism Advantage
Cape Town’s ranking provides South Africa with another marketing advantage in the international tourism market.
For travellers seeking winter sunshine, the city combines a recognised tourism profile with comparatively competitive everyday costs according to the barometer.
The result could also have wider implications for African tourism.
International perceptions of African destinations are often dominated by wildlife tourism and safari experiences. Cape Town and Mombasa demonstrate the continent’s broader appeal through coastal tourism, urban experiences, food and leisure.
Affordability alone will not determine where travellers go. Flight connectivity, safety, accommodation, visa requirements, attractions and service quality remain important considerations.
But when destinations offer comparable experiences, everyday spending can become decisive.
Cape Town’s first-place finish and Mombasa’s second-place ranking therefore give the African tourism industry something significant to build upon: evidence that major destinations on the continent can compete not only for experience but also for value.
