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Turkey’s Marmaris has been ranked the cheapest short-haul holiday destination for UK families.

The port city has the lowest prices out of 16 popular locations for a basket of 10 tourist items, Post Office Travel Money said.

This included just £67.67 for a three-course meal for two adults and two children with wine and soft drinks.

Other low prices included 16p for a 1.5-litre bottle of mineral water from a supermarket, £1.81 for a bottle or can of cola at a cafe or bar, and £2.61 for insect repellent.

Post Office Travel Money said the low prices for UK visitors are partly due to a sharp fall in the value of the Turkish lira.

Sunny Beach, Bulgaria, was found to be the second-cheapest destination, with Portugal’s Algarve taking the third spot.

Laura Plunkett, head of travel money at Post Office, said: “The collapse of the lira makes Turkish resorts like Marmaris a natural choice for families.

“However, visitors should be aware that while sterling is worth a third more than last July, local prices have increased dramatically because of the currency’s collapse.

“Thankfully, once the positive exchange rate is applied to those local prices, British visitors will only have to pay around 10% more than a year ago, and this increase is much lower than in many other destinations.”

The total price for the basket of goods at Marmaris (£128.99) was nearly half the price compared with the most expensive destination analysed, Spain’s Ibiza (£242.79).

Prices for UK holidaymakers have risen in 13 of the 16 locations.

Ms Plunkett added: “We found big price variations in the destinations surveyed, particularly comparing those in the eurozone.

“For example, prices in the Algarve are almost £100 lower for the same 10 items surveyed than in Ibiza.

“This makes it vitally important for holidaymakers to do their homework and take enough travel money to cover costs in the resort they are visiting.”