15 South and Central American cities by price: Backpacker Index for 2013

Many of the world’s best travel bargains can be found in Latin America, and this full 2013 update of our Backpacker Index ranks all the most popular destinations from cheapest to most expensive. In previous installments we checked the cheapest European cities and cheapest Asian cities, so now we arrive in an area that is often ignored by many due to its remoteness.

As the global economy continues to be slow, prices in South and Central America have mostly stayed the same for the past year. This means that the region is still loaded with bargain destinations, including many Tropical hot spots with good weather at least 8 months of the year. One exception is Argentina, where the currency keeps grinding its way down in value, but inflation has more than made up for it.

How the Backpacker Index works

Prices for most things are fixed and certain, but prices for a “budget lunch” or a pint of beer can vary depending on whom you ask. Still, our estimates are based on a lot of research, and should be very close if not right on.

Costs for each city

• One night in the cheapest bunk at the least expensive hostel with a good location and good reviews
• Two public transportation rides per day
• One paid/famous attraction per day (Every city is loaded with free things to do for budget-conscious travelers, but here we take the average cost of a major attraction in each city for each day.)
• Three “budget” meals per day.
• Three cheap, local beers each day as an “entertainment fund.” Non-drinkers might have dessert and coffee or attend a local music performance instead, so this is a general benchmark that should be proportional for each city.

Price of Travel’s South & Central American Backpacker Index for 2013

Note: All prices converted to US dollars in mid January, 2013.

1 – Quito, Ecuador (cheapest)

This high-altitude city with what might be the world’s most consistent weather is an excellent travel bargain. Unfortunately, it’s not too easy to reach, so it tends to get most visits from people touring the whole region. Those who make the effort will be rewarded with spring-like weather all year, and very low prices for almost everything.

• Currency: US dollar
• Cheap/good hostel: Vibes Hostel – 7/night
• Transportation: 0.50
• Meals: 7.80
• Drinks/Entertainment: 3.00
• Attractions: 2.00
• Daily Backpacker Index: US$20.30/day

>>>Quito prices and weather

2 – La Paz, Bolivia

Speaking of high altitude, La Paz is in a similar situation to Quito with its climate, and it’s also very cheap for tourists by international standards. Of course, once you get outside the big city, prices tend to be even lower, but in this part of South America the tourist infrastructure can be lacking unless you are in the popular cities.

• Currency: Boliviano
• Cheap/good hostel: Bacoo Hostel – 39.75/night
• Transportation: 2.60
• Meals: 78.00
• Drinks/Entertainment: 18.00
• Attractions: 10.00
• Daily Backpacker Index: BOB148.35 = US$21.47/day

>>>La Paz prices and weather

3 – Cusco, Peru

Those planning to see the amazing Machu Picchu ruins will start their trips in Cusco, so fortunately this is a great tourist town in its own right. There’s plenty to see and do in the city and in the general area, and there’s almost no end to the amount of affordable accommodations available. With most things being as cheap as they are, this is a wonderful town to just chill out in for a while if your schedule permits. Be aware that the train from Cusco to Machu Picchu is VERY expensive compared to everything else.

• Currency: Peru nuevos sol
• Cheap/good hostel: Wild Rover Backpackers Hostel – 17.86/night
• Transportation: 4.00
• Meals: 22.80
• Drinks/Entertainment: 9.00
• Attractions: 18.00
• Daily Backpacker Index: PEN71.66 = US$28.10/day

>>>Cusco prices and weather

4 – Panama City, Panama

Just as Colombia is getting a lot of attention recently, Panama is the new “in” place to go in Central America. The large capital is perhaps the only real major international city in the region, so you’ve got your choice of nightlife and interesting dining and cultural experiences, all at a very low cost. Some nearby resort areas are also great bargains for those who just want to sit on the beach, so Panama should continue on the upswing for some time to come.

• Currency: Panama Balboa/US dollar
• Cheap/good hostel: Panama by Luis – 13/night
• Transportation: 0.50
• Meals: 9.00
• Drinks/Entertainment: 2.40
• Attractions: 4.00
• Daily Backpacker Index = US$28.90/day

>>>Panama City prices and weather

5 – Mexico City, Mexico

Obviously Mexico City is not even in Central America, but we thought we’d include it here for comparison’s sake and also because many long-term travelers string it onto the beginning or end of a larger trip to the region. This huge metropolitan area can sound intimidating or out-of-control based on how it’s usually described, but the central tourist district is very nice, and even trendy, and continues to be a very worthwhile travel bargain.

• Currency: Mexican peso
• Cheap/good hostel: Hostel 333 – 130/night
• Transportation: 6
• Meals: 120
• Drinks/Entertainment: 54
• Attractions: 57
• Daily Backpacker Index: MXN367 = US$28.92/day

>>>Mexico City prices and weather

6 – Lima, Peru

Lima can be a surprising city to many who first visit, with lots of great colonial architecture combined with a vibrant big-city nightlife scene and a European-style way of life. The Miraflores suburb just on the coast is where you’ll find most of the hotels and guesthouses, and fortunately things there are still quite cheap in spite of the slightly posh vibe.

• Currency: Peru nuevos sol
• Cheap/good hostel: Happy Up Here Guesthouse – 15.31/night
• Transportation: 2.00
• Meals: 22.80
• Drinks/Entertainment: 15.00
• Attractions: 20.00
• Daily Backpacker Index: PEN75.11 = US$29.45/day

>>>Lima prices and weather

7 – Antigua, Guatemala

This charming colonial town in Guatemala would be higher up the cheapness list if not for the fact that the main attractions, including trekking to nearby volcanoes and such, tend to be relatively expensive. Still, it’s all worth it, and Antigua really is a great bargain destination, as well as being a far better alternative to nearby Guatemala City.

• Currency: Guatemalan quetzal
• Cheap/good hostel: Villa Esthela – 47.60/night
• Transportation: 10
• Meals: 73.20
• Drinks/Entertainment: 45
• Attractions: 60
• Daily Backpacker Index: GTQ235.80 = US$29.74/day

>>>Antigua prices and weather

8 – San Jose, Costa Rica

Only highlighting San Jose in Costa Rica on this list is a bit unfair, mostly since few tourists spend more than one night here on their way to the beach or resort cities elsewhere in the country. Budget travelers can do well in Costa Rica if they are careful, but generally it’s more expensive than anywhere else in the region, and things like canopy tours or surfboard rental can add a lot to the cost of a visit.

• Currency: Costa Rican colone
• Cheap/good hostel: Costa Rica Love – 3,252/night
• Transportation: 400
• Meals: 5,400
• Drinks/Entertainment: 2,250
• Attractions: 4,000
• Daily Backpacker Index: CRC15,302 = US$30.67/day

>>>San Jose prices and weather

9 – Montevideo, Uruguay

This city feels like a slightly-worse and less special version of its neighbor, so it’s a good thing it’s also a relative bargain. Many museums are free to enter, making it even a bit cheaper than it would otherwise appear. Montevideo might be worth a couple of days for those touring the region, but it’s not really a place to dwell unless you have a specific reason. Smaller towns in Uruguay, including Colonia, tend to be a bit cheaper, while the beach resorts can be very expensive.

• Currency:
• Cheap/good hostel: Che Legarto Hostel Montevideo – 208.44/night
• Transportation: 38
• Meals: 228
• Drinks/Entertainment: 105
• Attractions: 70
• Daily Backpacker Index: UYU649.44 = US$33.65/day

>>>Montevideo prices and weather

10 – Santiago, Chile

Being one of the largest cities in South America, it’s not too surprising that Santiago isn’t quite as cheap as some of the others, but still it’s a great bargain compared to almost anywhere in North America or Europe. This is often just a jumping-off point for other cities and sights in Chile, and most others tend to be even a bit cheaper.

• Currency: Chilean peso
• Cheap/good hostel: Footsteps Backpackers – 4,244/night
• Transportation: 1,040
• Meals: 6,240
• Drinks/Entertainment: 2,400
• Attractions: 3,000
• Daily Backpacker Index: CLP16,924 = US$35.85/day

>>>Santiago prices and weather

11 – Cartagena, Colombia

Colombia has been riding a tourism wave for the last few years, and that seems likely to continue. In addition to it now being mostly safe, this country is a fantastic value for most foreigners. Cartagena is its main tourist hub, but prices are similar or even lower in some of the other larger cities and beach resorts, so it can feel as cheap as Mexico used to before it got so built up in recent decades.

• Currency: Colombian peso
• Cheap/good hostel: El Viajero Cartagena Hostel – 29,040/night
• Transportation: 2,800
• Meals: 14,400
• Drinks/Entertainment: 7,500
• Attractions: 15,000
• Daily Backpacker Index: COP68,740 = US$38.88/day

>>>Cartagena prices and weather

12 – Buenos Aires, Argentina

Buenos Aires remains a relative travel bargain, but prices continue to creep up even more rapidly than the currency weakens, so it’s definitely more expensive than it has been in recent years. Easily the most European city in South America, Buenos Aires is hard to compare to others in the region. When compared to Madrid or Barcelona this city is cheap and just as wonderful, but inflation and a slow economy might mean that the good times are ending for a while.

• Currency: Argentine peso
• Cheap/good hostel: Pax Hostel – 45.00/night
• Transportation: 5.00
• Meals: 91.20
• Drinks/Entertainment: 45.00
• Attractions: 50.00
• Daily Backpacker Index: ARS236.20 = US$47.81/day

>>>Buenos Aires prices and weather

13 – San Pedro, Belize

First off, “backpackers” are probably better off on the nearby island of Caye Caulker, since Ambergris Caye (where San Pedro is) has no real hostels or similar businesses. Most everything else between Caye Caulker and San Pedro are the same though, so this shows that Belize is one of the more expensive places in the region, even if it’s still quite reasonable.

• Currency: Belizian dollar
• Cheap/good hostel: Pedro’s Inn Backpacker Hostel – 24.82/night
• Transportation: 4.00
• Meals: 43.20
• Drinks/Entertainment: 15.00
• Attractions: 10.00
• Daily Backpacker Index: BZD97.02 = US$48.51/day

>>>San Pedro prices and weather

14 – Rio de Janeiro, Brazil

The stunning city of Rio de Janeiro has actually gotten quite expensive for mid-market travelers, as hotels and tourist restaurants keep moving up. However, backpackers can still find cheap hostels, and sitting on one of the gorgeous beaches is still free (and the cold beers on the beach are still fairly cheap), but the main attractions are anything but. Those wanting to take the cable car up Sugarloaf or the train up to Corcovado (and you have to do both) might need an extra trip to the ATM beforehand.

• Currency: Brazilian real
• Cheap/good hostel: Tupiniquim Hostel Rio de Janeiro – 24.86/night
• Transportation: 6.40
• Meals: 33.60
• Drinks/Entertainment: 12.00
• Attractions: 30.00
• Daily Backpacker Index: BRL106.86 = US$52.38/day

>>>Rio de Janeiro prices and weather

15 – Caracas, Venezuela

With an unfortunate reputation for being dangerous, Caracas is also by far the most expensive city on this list, though it doesn’t have to be. The policies by the government include many parallel exchange rates, plus there’s a currency black market where tourists can often get double the normal rate, so a daring and savvy visitor might cut these prices in half. Still, there are no hostels and barely any tourist infrastructure in Caracas. Travelers concentrating on other parts of Venezuela are often rewarded with a unique experience, provided they do their research.

• Currency: Venezuelan bolivares fuertes
• Cheap/good hostel: Hotel Vistavila Suites (splitting a double room) – 150/night per person
• Transportation: 3
• Meals: 84
• Drinks/Entertainment: 18
• Attractions: 25
• Daily Backpacker Index: VEF280 = US$65.27/day

>>>Caracas prices and weather

Do you need travel insurance?

Travel insurance is cheaper than you might think and it provides great peace of mind for many people, but it’s not right for everyone. You might be better off skipping it. Judge for yourself by reading:

>>>8 Reasons you should or should not get travel insurance

Also check out:

• Asia Backpacker Index for 2013
• Europe Backpacker Index for 2013