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
2– La 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
3– 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. 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
4– Granada, 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
5– 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 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
6– 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, 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.
- Currency: Colombian peso
- Best cheap hostel: Selina Cartagena/a> – 59,218/night
- Transportation: 4,600
- Meals: 48,000
- Drinks/Entertainment: 15,000
- Attractions: 20,000
- Daily Backpacker Index: COP146,818 = US$37.38/day
7– Buenos 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.
8– Santa 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
9– 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. 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
10– Mexico 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
11– 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 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
12– 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
- 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
13– Rio 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
14– 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. 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
15– Montevideo, 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
16– Roatán 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
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
GREAT JOB ROGER ,IM FROM BRAZIL AND I THINK EVERYTHING IS RIGHT ON THE MONEY , THE ONLY OTHER THING I WOULD BRING UP IS BE VERY CARE-FULL , PAY ATTENTION ,BRAZIL IS A VERY DANGER PLACE TO BE , IT MAKES ME SAD TO SAY THAT BUT EVEN BEEN BORN IN BRAZIL I DONT FEEL SAFE WHEN IM THERE.
I’m from Argentina, and you are OK with everything Roger. Great article.
Not good with Argentina. REALLY.
I’m from Chile, and going to Buenos Aires is much cheaper than going anywhere here. Cause the Official Exchange Rate is something that you just don’t see. REALLY. Unless you make efforts to pay more, it has no sense to use the official exchange rate cause nobody use it.
Anyway, three budget meals per day, is 50, or 65 if you want, but no 105, no, never. And I’m telling you that I pay good Pizzas and nice restaurants in Buenos Aires. Attractions for 75? Well no idea, can you point out what attraction you use? Cause just Teatro Colón is an expensive attraction.
However, I dont want to sound rude, but I’ve seen in a lot of tourism-related sites that Buenos Aires is getting more and more expensive, and that’s not true. With a 11 to 13 exchange rate to USD, is not. And usually this site dont make that kind of mistakes, so because of that is my critic.
PS: Really good job with Santiago xD. I live here and apart from the Transportation (That’s the bus fare, and to move around the touristic parts, and well.. almost everywhere, we use the subway, that’s a little more expensive) everything is okay.
PS2: Sorry for my English jaja
Jorge,
Thank you for the comment. Argentina has become problematic for this site, to go along with Venezuela that has been complicated for at least a few years. The dual exchange rates in particular make it tough because the database checks the official exchange rate every hour or so, and the local rate is much harder to keep track of. Also, most people will shop for a hotel or hostel online, and pay with a credit card, so I think the official rate is still meaningful.
I’ve written about the dual exchange rates on the site, but I can’t just assume that EVERYONE will be able to change ALL of their travel money at the best rate. I have no doubt that a frequent visitor from Chile knows how to get the best exchange rate as well as find the better bargains. I’m less sure that a first-time visitor can find all the same deals. So my options were to inflate some prices to get the daily total fairly close to accurate, or use lower prices and assume that everyone will be able to change all of their money at the best rate. Either way, it’s a bit misleading. The same sad phenomenon makes Caracas seem insanely expensive, even though the different exchange rates are even more public, from what everyone says.
And hotel and hostel prices are what they are, and they are updated every January. Are you able to reserve rooms or beds with a credit card and get the better exchange rate? If that’s easy I might change my information again. Anyway, I really do appreciate the comments (positive and negative) and I really hope the currency in Argentina stabilizes because this dual exchange rate policy is only making things worse, especially for tourists. -Roger
Thanks very much for this article Roger it is extremely Helpful. I am a Backpacker and i will fly to the Rio carnival in 3 weeks before traveling around South America until the World Cup in June. Just one question: I see that this article has been updated on the 7th Jan this year but i seen the first comment was left in December 2012. Does this mean u have just updated the Prices on the Original Article to prices in 2014? I know the prices will go up in Brazil during the World Cup but this gives me a good idea off what i can live on. Luckily i have friends to stay with in Rio and Belo Horizone
Gareth
Sorry i see the answer to my question:
“Note: All prices converted to US dollars in early January, 2014”
It is all within the budget i have set myself so Happy Days 🙂
Gareth,
I’m glad you saw that. Yes, all prices are updated at the beginning of each year, including just a few weeks ago. I’ve been to Rio during Carnival and it’s really only hotels that shoot way up in price. A huge majority of people celebrating there are Brazilians, so restaurants and such don’t really raise prices then. However, during World Cup, I wouldn’t be surprised to see other prices go up as well. -Roger
Whom ever wrote this article must have not ever been to Miraflores. I am a retired American living here and my opinion is quite the opposite. I believe the food here is more expensive than in the USA. They do not give refills on coffee, sodas, hot and ice tea. Personally I spend about 10.00 per day just on coffee. Prices are about 2.50 per cup. Sure if you eat at a menu restaurant for 10 or 11 soles (4.00)and stay in a dump in an unsafe area you might be able to achieve the price mentioned in this article. But come on if you spend approximately a $1,000 for the flight just to get to Lima do you really want to eat in the menu restaurants and stay in a dump? The nicer places have a cover charge, there is also 10% to 13% service charge, and not to mention the 18% tax on everything. Taxi service from Miraflores to downtown Lima is approximately 5.00 dollars, to the San Miguel area about 7.00 dollars. In closing Miraflores is not a cheap place and if you want to go to Machu Picchu it is another $1,000.00 (per couple).
Dennis,
I have actually been to Miraflores, although not in the last couple of years. I do appreciate your comments and the information about prices at more typical tourist places. What I think you’ve missed is that this whole list is about comparing cities for the backpacking crowd. They stay in hostel dorms and look for cheap meals and drinks when they go out. The reason to do this is to travel for many weeks, months, or years at a time. In other words, this isn’t based on someone flying in from Europe or North America just to visit Peru, it’s for someone touring South America.
The reason it’s this way is that it’s easy to spend freely on food and lodging anywhere in the world, but for those trying to keep costs down, some places are much cheaper than others. This list and the other Backpacker Indexes compare each city on that basis, even though many people will obviously choose to spend more. In Europe we have a 3-star Traveler Index and that would probably suit you better. It will debut for Asia in 2014 as well, but unfortunately not for South America soon. -Roger
Have loved your list for sometime. I think it may be due for an update though. I’m currently in Santiago. Spent a month and a half in BA. And have recently visited Montevideo and Cali. I tend to agree BUT it really should be noted that BA has two totally separate economies going at the same time. The blue market makes it FAR better value than many listed above it. It’s bizarre and frustrating but you can’t argue when the official rate is 5.2 and the blue market rate is 9.1. Changes the entire dynamic of budgeting.
Erick,
Thanks for the update on Buenos Aires. I’ll have to research it more and write about it in the description. As you probably know, Venezuela has something similar, which makes this an even more frightening development for Argentina. -Roger
Hi, thanks for this awesome review! Do you have any recommendations of spiritual experiences or places that I can visit while i’m there? Thanks a lot!
Karl se for vir a São Paulo- Brasil, vá para cidade de São Tome das Letras!! Lá é uma cidade muito mistica!
http://www.visitesaothome.com.br/
Na verdade São tome das Letra fica em Minas Gerais – MG
Desculpa!
Mexico city is not part of Central or South America. Mexico is part North America….
Aracelia, yes, I know where Mexico City is. It was included here because it’s more commonly included on tours of Latin America than on tours of the US and Canada. That’s actually the first sentence of the Mexico City description, and if you’d read it you could have saved us both the trouble. I appreciate the tip though. -Roger
The article and one comment suggests that Central America is a continent, it is not. There are only two continents in the Americas. North and South, with the border being between Panama and Colombia.
J Densmore,
First off, nowhere does it say that Central America is a continent. Second off, how much free time must you have to spend your days going through the internet trying to correct errors that aren’t even there? Either way, thanks for your interest. -Roger
Good article! But the list is not enough. We have much more touristic cities in South America. I can list 15 amazing cities just in Brazil. Try to do the same research unless for the World Cup cities.
Rafael, thank you for the kind words, and I agree that this article only scratches the surface of popular destinations in Latin America. The thing is, this is meant to be a tool to help plan and budget for trips rather than a world travel guide. Still, I’ll try to add at least a few more places this year. -Roger
Excellent article. I have been to each of these places and many more. South America in general is a very affordable place to spend a vacation.