Not only do they seem to be cheaper for staying there, but the price of holidays are certainly cheaper as well. For the past 3 years I have not been on a summer holiday to Europe because I find it either cheaper (Caribbean) or worth spending the extra few hundred pounds (Maldives) to go elsewhere.
This year I'm off to SSH and until the euro craps itself (which I hope it doesn't do for some time for the sake of the British economy) I won't be returning to Europe for quite a while!