Palma is good value for city breaks. | Gabriel Alomar

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Brexit fever or panic has sent shock waves through the tourist industry, mainly because of concerns about how the pound will compete with the euro. But while the divorce papers are being drawn up, UK travellers wanting a bargain city break can still find good value here in Palma, according to a study.

Paphos in Cyprus is the cheapest out of 36 European cities included in the Post Office Travel Money report, but Palma still makes the top ten. The research took into account a dozen typical city-break costs, including accommodation for two nights, transport between the airport and the city centre, an evening meal for two and entrance fees for top attractions.

This totalled just £138 in Paphos, which was followed by Vilnius (£139), Riga (£150) and Warsaw (£154). Paphos is one of four sunshine destinations to make it into the top ten. Lisbon, western Europe’s cheapest capital city, is at number seven (£162), while Athens is at nine (£191) followed by Palma (£196).

Andrew Brown, of Post Office Travel Money, said: "This is the first time since we started surveying tourist costs in European cities eight years ago that we have seen so many western capitals provide the low prices usually associated with Prague, Budapest and other eastern European cities.

"City breaks have emerged as the most popular type of holiday for UK tourists in the past three years and, with ongoing uncertainty about sterling, there is good reason for people planning trips to do their homework carefully and check where the pound will give them more for their money.

"This year the sunshine cities that have made it into our top ten look great value, with the promise of a sunny climate as well as low prices."