The secret Greek island where you can holiday like a Hollywood star for next to nothing - with flights just £75, a week's hotel stay for £200 and a litre of wine for £7

Skopelos, in Greece’s Northern Sporades islands, is famous for being where the seminal 2008 Abba musical Mamma Mia! starring Meryl Streep, Julie Walters, Pierce Brosnan and Colin Firth was filmed. But few know what a complete bargain of a holiday destination it is.

Flights are cheap – you go to neighbouring island Skiathos, from as little as £75 return from Gatwick on Easyjet. Then it’s a 15-minute ferry hop (£14) and you’re on a lovely, classic Greek island (population 5,000) with a slow place of life that’s just as enchanting now as it was when Streep and co went all those years ago.

Skopelos is often referred to as the Green Island due to its lush, verdant landscapes of pine and olive trees. The scent of pine and sage fills the air, and you can’t escape the hum of cicadas.

Expect white-washed buildings, local families picnicking on beaches, fruit sellers with rusty old trucks and some excellent hotel prices.

Take the Aegeon Hotel, on the edge of the main settlement, Skopelos town. Surrounded by pine forests, this simple lodging (with a 9.3/10 rating on Booking.com) offers basic but comfortable rooms. Yet all feature large balconies overlooking the sparkling waters of a gorgeous bay below.

The hosts, three generations of one family, are warm and welcoming – willingly driving guests to and from the port on request. There’s a large pool with ample seating. And then you have the room rates: from as low as £29 a night.

Cheap prices are commonplace on Skopelos. Across the island, most decent hotels of the standard of the Aegeon can be secured for about £40 a night in high season, while three-star properties with pools cost from around £58 – easily picked up online.

The tourist season here runs from May until October, and although there is so much more to Skopelos than Mamma Mia!, it’s easy to seek out film settings if you’re a real fan. A good place to begin is Kastani beach, scene of the quirky Does Your Mother Know number as well as the romantic Lay All Your Love On Me sequence.

Getting there is simple – and naturally affordable. Buses on the island are frequent and cheap. Tickets start from £1.70 for a 15-minute journey up to £4.30 for an hour’s trip from Skopelos town to Glossa, where the two ports are. Alternatively, motorbike hire is from £13 a day.

Most beaches are easy to reach by bus and all have free areas where you don’t need to rent a sunbed. Milia and Limnonari were particularly peaceful – and no need to spend a single euro. Yet even on the most popular beaches, like Kastani, sunbeds are a reasonable £13 for the whole day.

Die-hard fans of the Swedish hitmakers will be keen to visit Agios Ioannis Chapel in Kastri, where the wedding scene was filmed; requiring climbing 200 steps carved into the rock. It’s possible to drive along bumpy roads to this location, but for those nervous behind the wheel, it’s perhaps best to take a boat tour. Sporades Queen Cruises offers a three-hour trip to see the chapel from the sea, as well as inaccessible parts of the island’s north. Tickets are a reasonable £25.

This company also runs boat trips to the Northern Sporades’ National Marine Park, the largest protected marine area in Europe, home to the endangered Mediterranean monk seal. I opt for this trip, which also visits the unspoiled island of Alonissos.

The double-decker boat stops at the all-but-abandoned island of Peristera too, home to around 30 residents – and some of the most beautifully clear swimming waters anywhere. This seven-hour cruise costs £34, and the bar onboard is no rip-off either: beers are £1.70.

There are plenty of great local hikes. A popular route is from Skopelos town to Stafylos village and on to quiet Velanio beach. Then walk or take the bus back after a dip.

Skopelos has more than 360 churches and chapels, plus the ruins of a Venetian castle near the port – all free to visit.

In the old part of Skopelos town, some of the best spots to eat and drink include the International Cafe, Aktaion Taverna and En Plo Cafe.

Happy hour cocktails cost around £6.50, while typical Greek dishes such as moussaka and souvlaki will set you back about £9.

A litre of decent house wine is usually £7.

For a quick snack, bakeries and cafes sell strong Greek coffees and pastries like spanakopita and baklava for £1.70. Don’t miss traditional Skopelos cheese pie, cooked in a frying pan and served with honey.

Mamma Mia! could have led to a tourist stampede on Skopelos but it has not suffered the overtourism and sky-high prices of the likes of Mykonos and Santorini. And what a joy that is.

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• Decent hotels across the island cost from £203 for seven nights.

• Buses are frequent and cheap, at £1.70 for a 15-minute ride up to £4.30 for an hour trip.

• A seven-hour cruise taking in a National Marine Park and the islands of Alonissos and Peristera is £34.

• Day rates for motorbikes are from £13.

• Renting a sunbed for a day is also £13.

• Happy hour cocktails in Skopelos town are £6.50, while a litre of house wine is £7.

• Greek dishes like moussaka cost around £9.

Gatwick-Skiathos return flights from £75 (easyjet.com). Island cruises available at sporadesqueencruises.gr