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Agadir in Morocco has been named as the best value luxury holiday destination for 2015.

Online travel agent On the Beach looked at average holiday costs during 2014 to predict the best value destinations for 2015, with Agadir just pipping Malta to the post in the five-star category.

The Algarve is the third best value destination, followed by Hammamet in Tunisia and Paphos in Cyprus.

Spain reigns in the four-star holiday category with three destinations in the top five. Leading the way is the Costa Brava, followed by the Algarve. Malaga and Alicante are placed third and fourth respectively, whilst Halkidiki in Greece makes up the top five.

Malta is identified the best value all-inclusive destination, followed by the Costa Brava, Crete, Hammamet in Tunisia and the Portuguese Algarve.

Upgrading hotel to a higher class can often save money, the report reveals.

Holidaymakers to Malta can save up to 45% by choosing a four-star hotel instead of a three-star while Menorca offers savings of up to 24% for holidaymakers choosing a three-star hotel instead of a more basic two-star property, according to the study.

The OTA’s chief marketing officer Alistair Daly said: "Our beach holiday report shows that for those looking for a great value holiday in 2015, there are some fantastic destinations to choose from.

“The report also shows that holidaymakers really need to do their homework and check across a range of destinations and hotels as the lower grade holidays are not always