Home » Japan Travel News » Portugal Joins Mexico, South Africa, Oman, United Kingdom, Japan, and Bermuda as Top Picks for Affordable Luxury Destinations in 2026

Published on
January 10, 2026

Portugal has secured its spot alongside prestigious luxury destinations like Mexico, South Africa, Oman, the United Kingdom, Japan, and Bermuda for 2026, offering a unique mix of upscale experiences at a fraction of the typical cost. This European gem allows travelers to enjoy five-star accommodations, gourmet dining, and private tours without the steep prices usually associated with luxury destinations. From Lisbon’s historic charm to the scenic Algarve beaches, Portugal offers a wide range of premium experiences. Its affordability, combined with top-tier hospitality, makes it a standout choice for 2026, providing the perfect balance of luxury and value for budget-conscious travelers.

Luxury travel is no longer restricted to high-cost destinations. A growing number of cities worldwide now offer five-star stays, private tours, fine dining, and spa treatments at surprisingly affordable rates. These destinations deliver a seamless blend of luxury and value, where travelers can indulge in premium experiences without stretching their budgets. Based on overall value in accommodation, dining, transport, and experiences, here are some of the most affordable luxury destinations today.

Cape Town, South Africa
Cape Town is at the top of the list for offering the best value in luxury travel. The city boasts five-star hotels starting at approximately $199 per night, with fine dining options that are significantly more affordable compared to other luxury destinations. Private tours and spa treatments are reasonably priced, making Cape Town an exceptional value for those seeking top-tier experiences without compromising on service, stunning views, or hospitality.

Hamilton and Pink Sand Beaches, Bermuda
Bermuda offers an impressive luxury experience at a fraction of the price of other high-end destinations. Five-star hotels here average around $133 per night, with private tours offered at affordable rates. Although dining prices are on the higher side, the overall affordability of accommodation, activities, and transportation makes Bermuda a great choice for those seeking a luxurious beach getaway on a budget.

Muscat, Oman
Muscat stands out for its affordable dining and transportation options. While luxury hotels in the city can be priced higher than in other destinations, everyday luxuries such as fine meals, taxis, and spa treatments remain very reasonably priced. This combination of premium service and affordable everyday experiences makes Muscat a fantastic destination for those looking to enjoy high-end hospitality without overspending.

Riviera Maya, Mexico
Riviera Maya offers travelers a luxurious experience at a great value, with reasonably priced five-star resorts, dining, and transportation options. Although spa treatments can be on the expensive side, the cost of accommodation and private tours is highly competitive, making this beach destination an attractive option for travelers seeking luxury without overshooting their budget.

Algarve, Portugal
The Algarve offers a balanced mix of quality luxury resorts and affordable experiences. While hotel prices can be higher in this region, the cost of dining, transportation, and tours remains relatively low. The Algarve stands out for its high standards of hospitality and the value it offers in everyday luxury experiences, making it a top choice for those seeking both quality and affordability.

London, United Kingdom
London is included on the list for its comparatively affordable private tours, which stand out against other luxury capitals. While hotel prices can be high, the cost of guided tours and public transport is more budget-friendly, providing a perfect mix of luxury and affordability for those wanting to experience the best of the British capital without exceeding their budget.

Tokyo, Japan
Tokyo may have higher hotel prices, but it surprises travelers with affordable fine dining and transportation. The city’s luxury appeal is bolstered by efficient services, moderately priced private tours, and accessible spa treatments, providing travelers the opportunity to experience top-tier hospitality while keeping daily expenses low.

Portugal joins Mexico, South Africa, Oman, the United Kingdom, Japan, and Bermuda as a top affordable luxury destination for 2026, offering five-star experiences, fine dining, and private tours at a fraction of the cost found in other luxury hotspots. With its blend of stunning landscapes and exceptional value, Portugal is a must-visit for those seeking luxury without the high price tag.

These destinations offer travelers a perfect blend of luxury and value, allowing them to indulge in premium experiences without the hefty price tag often associated with high-end travel. Whether you’re looking for a beach escape, a city adventure, or a cultural journey, these affordable luxury hotspots make it possible to enjoy the best of travel without breaking your budget.