The City Costs Barometer placed Portugal's capital at the top of the cities in the eurozone and the second highest of all cities after Prague.

Welcoming the report, Rosanna Melaragni, product manager for Portugal at Sunvil Discovery, said that visitors should look to Lisbon over the Algarve for a great value holiday.

"Portugal is no longer just about the Algarve," she claimed.

Now, visitors are travelling to Lisbon to see its "cultural monuments, historical value, elegant atmosphere and close proximity to glorious breaches".

Ms Melaragni recommended that holidaymakers visit the lively Bohemian District, where there are trendy bars and restaurants and "spectacular views of the city".

She also said that from June 13th-14th the Festival de Santo Antonio takes over the city, with street processions followed by dancing and music and traditionally nobody sleeps throughout the two days.

Travellers can fly to Lisbon from a number of UK airports including London Gatwick.

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