Prices in Malta and Cyprus could rise by more than a third now they are in the eurozone, Charles Starmer-Smith wrote in yesterday’s Daily Telegraph, quoting currency experts.

Costs for holidaymakers in Malta and Cyprus, which until now have been based respectively on the Maltese lira and Cypriot pound, have historically been lower than in eurozone countries such as France and Spain.

According to price comparisons researched by the Post Office, prior to entry into the eurozone both countries were cheaper for goods ranging from coffee and beer to stamps and evening meals. Only Portugal proved cheaper (see table).

But the two islands could find themselves among Europe’s most expensive destinations if the switch to the euro follows the pattern of 2002, when prices in most of the first 12 countries to form the eurozone shot up.

Research conducted by American Express between 2001 and 2002 (using data provided by national tourist offices) indicated that before joining the EU, Spain and Greece were the cheapest of Europe’s major holiday destinations, and Italy the most expensive. Months after adoption of the euro, the research showed, costs of basic holiday items in Greece, Italy, France and Spain rose by an average of 36 per cent. Only in Portugal did euro prices stay more or less in line with the local currency.

Prices in Portugal still remain the best value for Britons and Italy is now one of the more reasonably priced destinations. But Spain, once the bargain basement of Europe, has become one the most expensive eurozone countries to visit.

A recent YouGov survey showed that nearly three quarters of British travellers were unaware that Cyprus and Malta had joined the eurozone this month.