The Mallorcan tourist industry has been warned of possible stiff competition from resorts in Eqypt´s Red Sea which offer great value for money for British tourists following a fall in the value of the Eqyptian pound.

Post Office Travel Money says UK holidaymakers will be able to get more for their sterling, after a sharp fall in the value of the Egyptian pound. Travellers could pocket an extra £210 on a £500 currency exchange.

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When the exchange rate is favourable, the cost of accommodation and other expenses paid in local currency will be lower in sterling terms, making visits cheaper overall for travellers, the Post Office says.

Popular resorts such as Sharm el-Sheikh have felt the effects of inflation and political instability, the research added.

The tourist industry on the island has already been warned over costs with fears that tourists will have less money to spend this summer.