17 South and Central American cities by price: Backpacker Index for 2024

Latin America continues to offer some of the best travel bargains in the world, and our 2024 update of the Backpacker Index for the region should help you choose the cheap places that you actually want to visit. Many of the world’s great travel bargains are in Central and South America with prices similar to the cheapest places in Eastern Europe or Southeast Asia. Even cities like Buenos Aires and Rio de Janeiro are quite affordable by international standards consider how nice they are.

Most of the currencies and economies in Latin America were pretty stable during 2023, except for Argentina, which had record inflation once again. We also no longer list Venezuela because their economy is in shambles, but at least Argentina might finally have light at the end of the tunnel. Inflation averaged about 5% in 2023 in the region, which is typical of most other places around the world.

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 2024

Note: All prices converted to US dollars in January, 2024

1 Quito, Ecuador (cheapest)

This high-altitude city with some of 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. As with most other places on this list, once you get outside the biggest city the prices tend to be even lower.

  • Currency: US dollar
  • Best cheap hostel: The Secret Garden Quito – 7.19/night
  • Transportation: 0.50
  • Meals: 12.60
  • Drinks/Entertainment: 6.00
  • Attractions: 2.00
  • Daily Backpacker Index: US$28.29/day

>>Quito prices and weather

2La Paz, Bolivia

Speaking of high altitude, La Paz is in a similar situation to Quito (above) 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
  • Best cheap hostel: Wild Rover Hostel La Paz – 71.82/night
  • Transportation: 4.00
  • Meals: 82.80
  • Drinks/Entertainment: 24.00
  • Attractions: 15.00
  • Daily Backpacker Index: BOB197.62 = US$28.64/day

>>La Paz prices and weather

3Lima, 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. The central city area is also interesting and probably better for those who speak at least some Spanish. Lima is a good base to launch trips to Machu Picchu among many other worthwhile sights in this underrated country.

  • Currency: Peru nuevos sol
  • Best cheap hostel: 1900 Backpackers Hostel – 24/night
  • Transportation: 3.00
  • Meals: 37.20
  • Drinks/Entertainment: 27.00
  • Attractions: 30.00
  • Daily Backpacker Index: PEN121.20 = US$31.98/day

>>Lima prices and weather

4Granada, Nicaragua

While Managua is the crowded capital of Nicaragua, Granada is arguably its top tourist destination for foreign visitors and backpackers. This colonial town is one of Central America’s best tourism bargains, with prices noticeably lower than in similar colonial towns in neighboring countries. There aren’t many hostels here yet so it’s wise to book ahead even though the existing hostels are quite cheap. There is a lot to see in Nicaragua and several other colonial towns worth visiting between the natural sights. That said, Nicaragua has become one of the countries whose citizens are leaving in droves due to political instability. The US State Department says “The government of Nicaragua arbitrarily enforces laws for political purposes.” That seems unlikely to affect the average backpacker, but it’s something to be aware of.

  • Currency: Nicaragua Cordoba
  • Best cheap hostel: De Boca en Boca – 403/night
  • Transportation: 30
  • Meals: 504
  • Drinks/Entertainment: 180
  • Attractions: 100
  • Daily Backpacker Index: NIO1,217 = US$33.26/day

>>Granada prices and weather

5Cusco, 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 and Machu Picchu admission are VERY expensive compared to everything else. Hostels here are plentiful and strangely cheap, so many people stay on longer than they originally planned. Cusco is a classic backpacker hangout and if the weather is decent you might encounter people who have stayed on for weeks longer than they had planned.

  • Currency: Peru nuevos sol
  • Best cheap hostel: Magicpacker Hostel – 25.62/night
  • Transportation: 8.00
  • Meals: 34.80
  • Drinks/Entertainment: 18.00
  • Attractions: 40.00
  • Daily Backpacker Index: PEN126.42 = US$33.36/day

>>Cusco prices and weather

6Cartagena, 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, as it offers a gorgeous walled Colonial town not far from some pleasant Caribbean beaches and a cruise port. This is the best value Caribbean beach destination, as long as you don’t need white sand. If you are looking for mild weather and far fewer tourists you might also head to Medellin.

>>Cartagena prices and weather

7Buenos Aires, Argentina

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 continues to run at insanely high levels so prices of food and drinks can be hard to predict in local currency. In fact, in 2023 the inflation was about 250% so prices jumped every week and the currency went lower every week. Everyone who visits says it’s very cheap for those with US dollars or Euros and that is likely to continue indefinitely.

Argentina elected a new president in late 2023 and he has vowed to finally reform the system of just printing more money to pay for government services, but in early 2024 it’s too early to tell if it will work or not. For now it’s still wise to research the “Blue Dollar” and bring crisp US dollars with you, although that may finally change at some point. Good luck!

  • Currency: Argentine peso
  • Best cheap hostel: Voyage Recoleta Hostel – 9,691/night
  • Transportation: 160
  • Meals: 12,600
  • Drinks/Entertainment: 4,500
  • Attractions: 4,000
  • Daily Backpacker Index: ARS30,951 = US$37.52/day

>>>Buenos Aires prices and weather

Argentina has several other key tourist cities to consider including the beach resort of Mar del Plata, the wine region of Mendoza, and the Alpine-style mountain resort of Bariloche.

8Santa Ana, El Salvador

Similar to most other Central American countries, the largest city (San Salvador) is not the best tourism destination compared to the smaller Santa Ana. This is another colonial city that is friendly and easier to deal with than the capital, and it’s easier to find English speakers here as well. Santa Ana is another travel bargain by international standards. Other smaller towns in San Salavador will generally be even a bit cheaper. Stay current on safety warnings before you go because this country is not among the safer ones in Central America. Even though Santa Ana is way down the list from Granada, it’s not really too much more expensive and these cities are all bunched up on the list.

  • Currency: US dollar
  • Best cheap hostel: Hostel Casa Verde Santa Ana – 14.16/night
  • Transportation: 0.50
  • Meals: 17.76
  • Drinks/Entertainment: 9.00
  • Attractions: 2.00
  • Daily Backpacker Index: US$43.42/day

>>Santa Ana prices and weather

9Santiago, 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. Visitors to Santiago will probably also want to spend some time in the nearby Colonial beach town of Valparaiso.

  • Currency: Chilean peso
  • Best cheap hostel: Hostel Providencia – 17,385/night
  • Transportation: 1,320
  • Meals: 12,000
  • Drinks/Entertainment: 7,500
  • Attractions: 5,000
  • Daily Backpacker Index: CLP43,205 = US$46.46/day

>>Santiago prices and weather

10Mexico City, Mexico

Obviously Mexico City is not even in Central America, but we include it here because it’s popular on tours around Latin America. In spite what you might have heard in the past, the huge central city part of Mexico City is modern, safe, and clean. It looks like one of the richer cities in North America and the food is terrific as long as you enjoy those local flavors. Few people speak English, but it’s loaded with highlights and a fantastic travel bargain. Mexico City is also at a high elevation so the weather is milder than you might expect, with cool summers that can be a relief after traveling through Central America.

  • Currency: Mexican peso
  • Best cheap hostel: Casa MX Alameda – 210/night
  • Transportation: 10
  • Meals: 360
  • Drinks/Entertainment: 150
  • Attractions: 75
  • Daily Backpacker Index: MXN805 = US$46.80/day

>>Mexico City prices and weather

11Panama 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 relatively 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. Panama’s San Blas islands in the Caribbean are becoming a trendy winter destination and they even have some fairly basic overwater bungalows there as well as a luxurious all-inclusive resort that was reopened last year.

  • Currency: Panama Balboa/US dollar
  • Best cheap hostel: Hostal Casa Areka – 12.00/night
  • Transportation: 0.70
  • Meals: 16.80
  • Drinks/Entertainment: 7.50
  • Attractions: 10.00
  • Daily Backpacker Index = US$47.00/day

>>Panama City prices and weather

12Antigua, 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
  • Best cheap hostel: Tropicana Hostel – 83.28/night
  • Transportation: 16
  • Meals: 153.60
  • Drinks/Entertainment: 90
  • Attractions: 40
  • Daily Backpacker Index: GTQ382.88 = US$49.02/day

>>Antigua prices and weather

13Rio de Janeiro, Brazil

The stunning city of Rio de Janeiro had actually gotten quite expensive for mid-market travelers, but in recent years the currency cooled off and it’s something of a bargain again. Fortunately, 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. You’ll find generally lower prices in the beach resort town of Recife, and a wide range in the enormous nearby city of Sao Paulo.

  • Currency: Brazilian real
  • Best cheap hostel: Books Hostel – 76.36/night
  • Transportation: 8.20
  • Meals: 80.40
  • Drinks/Entertainment: 30.00
  • Attractions: 60.00
  • Daily Backpacker Index: BRL254.96 = US$51.51/day

>>Rio de Janeiro prices and weather

14San 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. Costa Rica has actually become more expensive recently as its currency went up recently. Still, Costa Rica tends to be the safest and best organized country in Central America, so it’s the best choice for many. If you are looking for more of a mid-priced beach area you might consider flying into Liberia Airport and visiting the Guanacaste region.

  • Currency: Costa Rican colone
  • Best cheap hostel: In The Wind Hostel & Guesthouse – 7,592/night
  • Transportation: 500
  • Meals: 8,280
  • Drinks/Entertainment: 3,600
  • Attractions: 7,000
  • Daily Backpacker Index: CRC26,972 = US$52.89/day

>>San Jose prices and weather

15Montevideo, Uruguay

This city feels like a slightly-worse and less special version of its neighbor (Buenos Aires), although the economy here has been more far stable. 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 such as the famous Punta del Este can be very expensive, at least by South American standards.

  • Currency:
  • Best cheap hostel: Viajero Montevideo Hostel – 722/night
  • Transportation: 66
  • Meals: 816
  • Drinks/Entertainment: 390
  • Attractions: 150
  • Daily Backpacker Index: UYU2,144 = US$55.07/day

>>Montevideo prices and weather

16Roatán Island, Honduras

Roatán Island is a relative newcomer to the tourism scene, but it’s become popular quickly for its excellent diving and snorkeling along with sandy beaches and a Caribbean vibe. Cruise ships now stop here and that has also changed the complexion of the island, making it far more commercial. It’s close to the islands of Belize, with better beaches but similar prices in general. Similar to Belize (see below), the main trick is getting here and once you manage that your money buys a lot.

  • Currency: Honduras Lempira
  • Best cheap hostel: Roatan Backpacker’s Hostel – 353/night per person
  • Transportation: 66
  • Meals: 816
  • Drinks/Entertainment: 390
  • Attractions: 150
  • Daily Backpacker Index: HNL1,472 = US$59.74/day

>>Roatán Island prices and weather

17 San Pedro/Ambergris Caye, Belize

First off, “backpackers” are probably better off on the nearby island of Caye Caulker, since Ambergris Caye (where San Pedro is the main town) only has a few hostels. 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. As long as you don’t need expansive sandy beaches (because Belize has few of those) this is a good bargain in the Caribbean for independent travelers. The cheapest way to get here is usually to fly into Belize City and then take a bus or taxi to the ferry dock and then take a water taxi to the island.

  • Currency: Belizian dollar
  • Best cheap hostel: Sandbar Beachfront Hostel – 29.92/night
  • Transportation: 6.00
  • Meals: 66.00
  • Drinks/Entertainment: 30.00
  • Attractions: 10.00
  • Daily Backpacker Index: BZD141.92 = US$70.61/day

>>San Pedro prices and weather

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All Comments

  1. Martin says:

    Sorry but, as an Argentinean, I have to say Buenos Aires is the cheapest (by far and large) of the list. Of course it’s a matter of analizing the real exchange rate, not the one you get in google (the difference is 100%+)

    1. Roger Wade says:

      Thanks again Martin. A good friend (and fellow travel writer) just got back from a couple weeks in Argentina and we talked about how cheap things are when you use the non-official exchange rate from cash. It’s hard to imagine even that being so much cheaper than Quito and La Paz considering how cheap those are, but it’s good to hear and I look forward to going back there as soon as I can again. I’m kind of a cheapskate so I will bring lots of new US dollars to exchange. I appreciate it. -Roger

  2. Mojtaba says:

    WOW. That’s great… I’m going to South America for a permanent resident.
    Thanks. The list was so helpful.

  3. Robert Steiner says:

    Thanks for the article.
    However, 2 other cities should be included in the list above:
    1.Medellin, Colombia -much safer today than 25 years ago.
    2.Cordoba, Argentina -very different from Buenos Aires.
    They among the cheapest cities in Latin America and quite safe as for local standards.
    Check “Expatisan” and “Numbeo” for more details on cost of living, crime level, pollution, etc. “Wikipedia” for climate.

    1. Roger Wade says:


      Thanks for the feedback. We recently created a page for Medellin so I will add it to the list during the update that will take place in early January. I’ve got pages for 4 additional Argentine cities plus Buenos Aires, but Cordoba isn’t one of them. I’ll look into it though. I might add at least one of the other cities to the list in the upcoming update. Generally I don’t like to add too many cities that are “secondary” destinations. In other words, pretty much every foreign tourist who goes to Argentina is going to spend time in Buenos Aires and then perhaps also some other places. Those other cities in a country tend to have similar prices, although usually a bit cheaper than the largest city. Again, I really appreciate the suggestion. -Roger

  4. Carlos M. Egana says:

    I really enjoyed the list. About Caracas (my hometown), it’s by far the cheapest in that list. I can’t blame you for not having accurate numbers, because the exchange rate is challenging to say the least even for locals. But while it truly is dangerous, you could do some amazing tourism extremely cheap if you have the necessary guidance.

    1. Roger Wade says:


      I appreciate the kind words and I wish I could be more accurate about Venezuela. Hopefully things become less dangerous and more stable soon. -Roger

  5. jim says:

    would love to go to venezula..on a scale of 1 to 10 how dangerous is it …10?

    1. Roger Wade says:


      I’ve not made it to Venezuela and I don’t plan on going until things change there. I’ve heard that the cities are quite dangerous but that the smaller towns and natural sights are still fairly safe. Hopefully you can find more information on an active forum such as the one on Lonely Planet where there are Venezuelans commenting. -Roger

  6. Andres says:

    Caracas info is wrong as it could be. Due to the constant devaluation of the bolivar, the backpacker index is around $9 or $10 per day. Since the minimum wage is aroung $2.10 and going down, and $1 is plenty when translated to bolivars

    1. Roger Wade says:


      Yes, I know. That’s why I wrote that it’s impossible to compare Caracas to any other city, unless you know how and when you’ll change your money. The official prices for foreigners are outrageous, but I’m aware that it’s possible to get better exchange rates. I actually included that in the explanation, so I wish you had read that. If you have more concrete numbers I would love to hear them and I could update the article. -Roger