17 South and Central American cities by price: Backpacker Index for 2025
Latin America continues to offer some of the best travel bargains in the world, and our 2025 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.
The is very good news to report in this region as some prices and most hostel rates actually came DOWN in 2024 compared to the year before, so visiting these places in 2025 is going to be a bit cheaper than it was even last year. Of course some places are much cheaper than others and that is the point of the list below. You’ll find great bargains all over the area and even the most expensive places on the list are resort beaches that are still quite reasonable by most international standards.
This article was last updated in January, 2025
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 2025
Note: All prices converted to US dollars in January, 2025
1– La Paz, Bolivia (cheapest)
This high-altitude city with some of the world’s most consistent weather is an excellent travel bargain. 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: The Adventure Brew Hostel – 42.61/night
- Transportation: 4.00
- Meals: 91.20
- Drinks/Entertainment: 24.00
- Attractions: 15.00
- Daily Backpacker Index: BOB176.81 = US$25.44/day
2 – Quito, Ecuador
Speaking of high altitude, Quito is in a similar situation to La Paz (above) with its climate, and it’s also very cheap for tourists by international standards. 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 – 4.66/night
- Transportation: 0.50
- Meals: 12.60
- Drinks/Entertainment: 6.00
- Attractions: 2.00
- Daily Backpacker Index: US$25.76/day
3– 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: Hostel La Antigua Capsula – 39,645/night
- Transportation: 4,600
- Meals: 48,000
- Drinks/Entertainment: 15,000
- Attractions: 20,000
- Daily Backpacker Index: COP127,245 = US$29.02/day
4– 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: Cusco Packers Hostels – 18.23/night
- Transportation: 8.00
- Meals: 34.80
- Drinks/Entertainment: 18.00
- Attractions: 40.00
- Daily Backpacker Index: PEN119.03 = US$31.49/day
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. 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: Waikiki Hostel – 24/night
- Transportation: 3.00
- Meals: 37.20
- Drinks/Entertainment: 27.00
- Attractions: 30.00
- Daily Backpacker Index: PEN121.20 = US$32.06/day
6– 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 – 442/night
- Transportation: 30
- Meals: 504
- Drinks/Entertainment: 180
- Attractions: 100
- Daily Backpacker Index: NIO1,256 = US$33.92/day
7– 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: Old Bells Hostel – 7.00/night
- Transportation: 0.50
- Meals: 17.76
- Drinks/Entertainment: 9.00
- Attractions: 2.00
- Daily Backpacker Index: US$36.26/day
8– 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 – 159/night
- Transportation: 10
- Meals: 360
- Drinks/Entertainment: 150
- Attractions: 75
- Daily Backpacker Index: MXN754 = US$36.69/day
9– 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 high levels so prices of food and drinks can be hard to predict in local currency.
Argentina elected a new president in late 2023 and his reforms actually seem to be working. The inflation rate in 2024 was about 160% for the year still, but it was many times that in each of the years before so this is real progress. The trick for many years was to bring crisp US currency and then trade them locally at the Blue Dollar rate for double what the official rate was, cutting your costs in half. Now in 2025 the rate isn’t double anymore and it may not be that way for a long time, so it’s worth researching it before you book and go.
- Currency: Argentine peso
- Best cheap hostel: Play Hostel Arcos – 10,322/night
- Transportation: 260
- Meals: 16,800
- Drinks/Entertainment: 7,500
- Attractions: 4,000
- Daily Backpacker Index: ARS38,882 = US$37.68/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.
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. 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 – 157,816/night
- Transportation: 1,320
- Meals: 12,000
- Drinks/Entertainment: 7,500
- Attractions: 5,000
- Daily Backpacker Index: CLP41,636 = US$41.43/day
11– 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 – 91.40/night
- Transportation: 8.20
- Meals: 80.40
- Drinks/Entertainment: 30.00
- Attractions: 60.00
- Daily Backpacker Index: BRL270.00 = US$43.62/day
12– 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: Mamallena Backpackers – 11.00/night
- Transportation: 0.70
- Meals: 16.80
- Drinks/Entertainment: 7.50
- Attractions: 10.00
- Daily Backpacker Index = US$46.00/day
13– 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 – 681/night
- Transportation: 66
- Meals: 816
- Drinks/Entertainment: 390
- Attractions: 150
- Daily Backpacker Index: UYU2,103 = US$47.41/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: Costa Rica Backpackers – 5,083/night
- Transportation: 500
- Meals: 8,280
- Drinks/Entertainment: 3,600
- Attractions: 7,000
- Daily Backpacker Index: CRC24,463 = US$47.69/day
15– 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 – 82.26/night
- Transportation: 16
- Meals: 153.60
- Drinks/Entertainment: 90
- Attractions: 40
- Daily Backpacker Index: GTQ381.86 = US$49.21/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 – 447/night per person
- Transportation: 66
- Meals: 816
- Drinks/Entertainment: 390
- Attractions: 150
- Daily Backpacker Index: HNL1,566 = US$61.24/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 – 29.88/night
- Transportation: 6.00
- Meals: 66.00
- Drinks/Entertainment: 30.00
- Attractions: 10.00
- Daily Backpacker Index: BZD141.88 = US$70.24/day
What about El Salvador? It is certainly cheaper than Belize, is it not?
Troy,
Yes, El Salvador is mostly cheaper than Belize. It’s just that we haven’t included it on this list so far because it’s not a very popular destination with most people. We will be adding a couple new Central America cities very soon, however, so thanks for bringing it up again. -Roger
I suggest that you cover Nicaragua – which ranks as one of the safest Latin American countries – in your listings. Granada, Leon, San Juan del Sur and many other Nicaraguan destinations get plenty of backpackers. Many economical options are available.
Sara,
I’ve been considering adding Granada to the list, and perhaps one or two other Central American cities in the next update. Thank you for the suggestion as it’s another vote for more in that area. -Roger
could some of you experienced south american traverlers reccomend somewhere plz. id like to go as economical as possible, travel during off season, looking for white beaches and maybe some archeologic sites. i dont need a fancy resort. any suggestions appreciated. thanks
nohumboldt,
Believe it or not, finding white beaches in South America isn’t easy. There are many affordable places in Colombia, including Cartagena, but the beaches are somewhere between sand and dirt. Brazil has many beautiful white-sand beaches, but it’s not too cheap. If you don’t mind being on sand that isn’t pristine, I’d suggest Colombia for the best value. Hopefully someone else will offer more options. -Roger
I love this site,readed all and is very clear to understand, i’m agree with “Quito is the cheapest city for travel in SouthAmerica” I live in Guayaquil-Ecuador and the prices are similar,i love go to Quito by the weather; for the people that want to come to Ecuador -Are welcome c:
It helped me a lot,I will study in La Paz-Bolivia the next year so with this is easy imagine the costs. Thanks.
I think this is the point of view of a single, unknown person. Please check the info with more backpackers!
Andres,
A lot of work goes into the Backpacker Index and most of it isn’t subjective. Specifically, what problems or inconsistencies have you found? It’s impossible to try to improve if the only comment is, “your opinion is wrong.” Thanks. -Roger
Like your site Roger. I’m a septuagenian…i think. Stated my backpacking days after business travel in the late 80s…dyslexia hit me in mind & body but…i’m a happy trekker
We are senior Indian citizens couple aged 80 and 76 respectively and wish to tour south and central america but due to old age we doubt whether we would be able to tour backpack. In such circumstances we have to depend on reliable person who can make a dependable tour package in minimum cost so that the principal attractions may be visited. Any help to guide us in this respect is solicited.Professional tour operator generally fleece ,so not wanted
Bhabani,
I understand your situation, and unfortunately I don’t think I will be of much help. I agree with you that doing this on your own would be tricky because there are very few trains in this region and the buses can be confusing (and uncomfortable if you take the public buses). There are many tour companies and hopefully you can find one that specializes in tours for older travelers. It’s just not anything I know enough about to provide good advice. Best of luck. -Roger
Enjoyed the list. I found Nicaragua to be cheaper than anywhere I’ve traveled in the world with private rooms under $10, lunch at a marketplace on the water for $1, inter-city bus fare or taxi for $1. Managua is more expensive then the smaller towns, but still a bargain.
Hi roger,
How about Managua? Any other recommendations in Nicaragua around late may-beginning of August? Is it typical for the price of airfare Bought now to be around ~$600 one way? Should i hold out?
Also, out of curiosity; if you had to venture a guess, what would the black market currency be worth against the official? And how does it fluctuate daily/weekly?
Megan,
I’ve not been to Nicaragua at all, and I haven’t heard many good things about Managua unless you are a real Central America completist. Most people agree that Granada is the better destination if you have to pick one city there. And I haven’t followed the black market exchange rate at all. I’ll answer your other questions on other articles now. -Roger
Hello Roger
Thank you for the time taken to gather all this helpful information for us tourist. Also for thinking about adding Mexico city into the list. I dont know if you have ever been to Guadalajara city.. in Mexico. If not I encourage you to do so!! Its a beautiful safe place with lots of warm and friendly people.
Hi Roger,
Thanks for the info. It’s very helpful in planning my trip to South America. I admire your patience with some people as well. Cheers