A glorious Portuguese island has been branded ‘Europe’s cheapest destination’.

Funchal, the capital of Madeira, is believed to have beaten off the cost-of-living crisis in recent years and is still very affordable for travellers to visit.

The stunning location is situated in the middle of a picturesque mountainous landscape on an island far out in the Atlantic Ocean, just off Morocco’s coast.

Tourists have chosen to visit the stunning city instead of going to one of the Canary Islands, which is believed to have pretty similarities.

Funchal is still warm in January and February and unlike other popular spots, doesn’t cash in on Brits looking for some winter sun. Late January flights from the UK to the island have seen a 20 per price drop over this period, reports the Mirror.

The stunning archipelago offers breathtaking mountainous landscapes, quaint towns with vibrant buildings, a rich history, enticing wine routes, botanical gardens, and more.

History enthusiasts will want to set aside time to explore Funchal’s Old Town, with its intricate architecture and colourful buildings, while art lovers may be drawn to Rua de Santa Maria, where doors and walls have been transformed into street art.

The beautiful fishing village of Camara de Lobos on the island of Madeira
The beautiful fishing village of Camara de Lobos on the island of Madeira (Image: Getty Images/iStockphoto)

Other must-visit spots include the Madeira Botanical Gardens with its stunning floral exhibits, the historic Funchal Cathedral, and the Mercado dos Lavradores, a bustling market brimming with everything from vibrant flowers to fresh produce. Don’t forget to carve out time for a ride on the Funchal Cable Car that links the city to Monte, offering breathtaking views along the way.

If you’re partial to a tipple, you’re in luck. Madeira boasts a 600 year old tradition of wine production, dating back to when it first started exporting the beverage to Portugal.

Today, you can follow this rich history with visits to the terraced vineyards, interspersed with numerous wine bars and shops where you can book tastings and delve into the past.

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