A study by the Post Office in the UK has found that Spain has the lowest in-resort prices of any major tourist destination in the world.
A 'basket' of goods, including a meal for two, cigarettes, coffee and suncream (among other things), cost just £36.14 on the Costa del Sol, equal to the price in Sri Lanka and beating other budget destinations such as Prague (£39.17) and Bali (£40.47) and way ahead of places like Corfu (£57.50) and the Dominican Republic (£71.97). You can see the full results here: Holiday Money Report Barometer
What exactly is meant by 'resort' is not always clear. Clearly, there is a world of difference in price between a street stall in the Dominican Republic and the prices tourists meet in an island resort, but Prague doesn't have any 'resorts' as far as I am aware. So while the survey may be a little subjective in what it chose to look at, there is no doubt that Spain is one of the very best budget travel destinations in the world.