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South and Central America are sometimes forgotten by residents of the rest of the world, but savvy travelers continue to flock to this region for a great variety of reasons. In addition to the cultural and scenic highlights, the entire area is quite cheap by international standards, at least once you are here. Backpacking in South America can be very inexpensive and mid-range travel can be surprisingly affordable as well.

This list has been completely updated in early 2016, with some rather large shifts in rankings. Several places have gotten cheaper for most visitors due to currency devaluation that has outpaced the inflation rates. Brazil and Argentina in particular are more affordable than they have been in years for foreign visitors. Colombia and Mexico are cheaper as well due to lowered currencies, while many others were quite stable and remain as very good bargains.

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 2016

Note: All prices converted to US dollars in February, 2016

1 – (cheapest) Quito, Ecuador

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 – 8.90/night
• Transportation: 0.50
• Meals: 7.80
• Drinks/Entertainment: 3.00
• Attractions: 2.00
• Daily Backpacker Index: US$22.20/day

>>>Quito prices and weather

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
• Cheap/good hostel: Bacoo Hostel – 54/night
• Transportation: 3.00
• Meals: 78.00
• Drinks/Entertainment: 18.00
• Attractions: 20.00
• Daily Backpacker Index: BOB173.00 = US$25.04/day

>>>La Paz prices and weather

3 – 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. Few people speak English, but it’s loaded with highlights and a fantastic travel bargain.

• Currency: Mexican peso
• Cheap/good hostel: Massiosare El Hostel – 139/night
• Transportation: 10
• Meals: 198
• Drinks/Entertainment: 90
• Attractions: 64
• Daily Backpacker Index: MXN501 = US$26.79/day

>>>Mexico City prices and weather

4 – 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
• Cheap/good hostel: Hostel Papaya Getsemani – 43,000/night
• Transportation: 2,800
• Meals: 29,400
• Drinks/Entertainment: 9,000
• Attractions: 13,000
• Daily Backpacker Index: COP97,200 = US$28.84/day

>>>Cartagena prices and weather

5 – 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: 1900 Backpackers Hostel – 27.85/night
• Transportation: 4.00
• Meals: 25.20
• Drinks/Entertainment: 18.00
• Attractions: 30.00
• Daily Backpacker Index: PEN105.05 = US$30.10/day

>>>Lima prices and weather

6 – 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.

• Currency: Peru nuevos sol
• Cheap/good hostel: Pirwa Backpackers Colonial – 27.85/night
• Transportation: 4.00
• Meals: 22.80
• Drinks/Entertainment: 12.00
• Attractions: 40.00
• Daily Backpacker Index: PEN106.65 = US$30.56/day

>>>Cusco prices and weather

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 and a slow economy might mean that things continue in an unpredictable fashion through 2016. In 2015 the new government did away with currency controls so visiting with an ATM card (instead of US dollars) is easier. Still, prices could continue to shoot up through the year.

• Currency: Argentine peso
• Cheap/good hostel: El Sol Hostel de Recoleta – 118/night
• Transportation: 10.00
• Meals: 180.00
• Drinks/Entertainment: 75.00
• Attractions: 75.00
• Daily Backpacker Index: ARS457 = US$32.00/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 – 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 – 49.70/night
• Transportation: 10
• Meals: 105.60
• Drinks/Entertainment: 54
• Attractions: 40
• Daily Backpacker Index: GTQ259.30 = US$33.90/day

>>>Antigua prices and weather

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
• Cheap/good hostel: Princesa Insolente Hostel – 7,050/night
• Transportation: 1,220
• Meals: 8,040
• Drinks/Entertainment: 4,500
• Attractions: 3,500
• Daily Backpacker Index: CLP24,310 = US$34.10/day

>>>Santiago prices and weather

10 – 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: Hostel Bekuo San Jose – 4,835/night
• Transportation: 500
• Meals: 6,000
• Drinks/Entertainment: 3,000
• Attractions: 4,700
• Daily Backpacker Index: CRC19,035 = US$35.44/day

>>>San Jose prices and weather

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.

• Currency: Panama Balboa/US dollar
• Cheap/good hostel: Hospedaje Cosco Viejo – 14.00/night
• Transportation: 0.70
• Meals: 14.40
• Drinks/Entertainment: 6.00
• Attractions: 5.00
• Daily Backpacker Index = US$40.10/day

>>>Panama City prices and weather

12 – 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 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.

• Currency:
• Cheap/good hostel: Willy Fog Hostel – 468.00/night
• Transportation: 102
• Meals: 432
• Drinks/Entertainment: 180
• Attractions: 100
• Daily Backpacker Index: UYU1,282 = US$40.95/day

>>>Montevideo prices and weather

13 – Rio de Janeiro, Brazil

The stunning city of Rio de Janeiro had actually gotten quite expensive for mid-market travelers, but in 2015 the currency went way down and it’s 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
• Cheap/good hostel: Beach Backpackers Hostel Rio de Janeiro – 34.80/night
• Transportation: 7.40
• Meals: 62.40
• Drinks/Entertainment: 21.00
• Attractions: 40.00
• Daily Backpacker Index: BRL165.60 = US$42.46/day

>>>Rio de Janeiro prices and weather

14 – 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.

• Currency: Honduras Lempira
• Cheap/good hostel: Hostel la Buena Onda – 270/night per person
• Transportation: 44
• Meals: 408
• Drinks/Entertainment: 150
• Attractions: 100
• Daily Backpacker Index: HNL972.00 = US$43.05/day

>>>Roatán Island prices and weather

15 – Caracas, Venezuela

With an unfortunate reputation for being dangerous, Caracas is also among the most expensive cities 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. There are a couple new hostels, but otherwise 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. Between the runaway inflation rates, the food shortages, currency controls, and weakened government, it’s hard to be confident in these prices in 2016 or predict what will happen next.

• Currency: Venezuelan bolivares fuertes
• Cheap/good hostel: Dal Bo Hostel – 85.70/night per person
• Transportation: 8
• Meals: 156
• Drinks/Entertainment: 36
• Attractions: 45
• Daily Backpacker Index: VEF330.70 = US$52.08/day

>>>Caracas prices and weather

16 – 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) has few 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. 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.

• Currency: Belizian dollar
• Cheap/good hostel: Sandbar Beachfront Hostel – 29.92/night
• Transportation: 6.00
• Meals: 43.20
• Drinks/Entertainment: 18.00
• Attractions: 10.00
• Daily Backpacker Index: BZD107.12 = US$53.56/day

>>>San Pedro prices and weather