If you want to travel without spending too much, this is where you need to go...
Did you know it's possible to travel comfortably for as little as $25 a day (or €20 / £15) in many places around the world? If you ever wondered how some people manage to travel for many months on end, this is it!
That doesn't include the cost of your flights to and from these destinations, though once you are there you can benefit from a comparatively very low cost of travel (especially if you are from a high-income country).
Below are 7 of the cheapest places to travel that I personally highly recommend. Of course, these are not the only cheap places to travel. I have travelled mainly throughout Asia and Latin America, so my recommendations focus in particular on these parts of the world.
Beware that other lists of cheapest places out there are often incorrect. Lazy copy-pasting has, for instance, led to very expensive countries like Costa Rica and Brazil becoming inaccurately promoted as budget destinations. With this list I tried to do a little better. While it's possible to forever debate which country is the absolute cheapest, you can be assured all of the below are definitely among the most inexpensive destinations around.
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1. Thailand (the north in particular)
Huh, Thailand? Isn't Thailand supposed to be an expensive resort destination these days?
While it's true that Thailand is increasingly focused on luxury tourism, that doesn’t mean it has lost its status as a budget backpacker haven. If you avoid spending all of your time in the most touristy beachside places in the south (places like Koh Samui, Krabi or Phuket) you can still travel very cheaply there.
Take an overnight train from Bangkok to Chiang Mai in the north (cost: $12) and you will quickly realize just how affordable Thailand can be. For example, in the country's northern regions you can still find dorm beds starting at $3 and basic private rooms starting at about $6. And no, these are not frightening cockroach-ridden hovels, but clean and respectable places to stay. The key though is not expecting the latest in luxury, and being okay with some of the more rustic backpacker accommodation you can find in a country like Thailand.
Aoi's Garden Home in Chiang Mai: here you can get a dorm bed for just $4 a night
Other destination may be just more inexpensive overall, but few countries offer as great value for money as Thailand. For example, for 30 baht (about a dollar) you can get a delicious and filling Pad Thai stir fry from a street vendor, whereas a dollar in other low-budget countries might get you something far less tasty. A $3 dorm bed in Chiang Mai will get you something basic but clean, whereas that same money in India might just get you something rather more questionable. In terms of price versus quality, Thailand is simply unbeatable.
Thanks to convenient transportation, relatively little hassle, and low cost, Thailand is also one of the easiest backpacking destinations worldwide.
Read my Thailand backpacking guide »
2. Indonesia
This private room in Indonesia with ensuite bathroom cost me just $10 a night.
Indonesia can, to the unadventurous tourist, seem very expensive. Bali is the country's main tourist destination, and if you only stick around Kuta and Legion (the beachside cities closest to the airport) you will find that prices are often not much different from those in Western countries. These places cater primarily to surfers and high-spending spring-breakers from Australia, and so it's full of high end nightclubs, O'neills surfing shops and expensive purpose-built hostels. But venture just slightly further inland and prices drop dramatically.
Ubud for example is hardly an off-the-beaten-path place, but I was able to rent this little temple (pictured above) for about $10 a night, which had a king size bed, a private porch and a bathroom large enough to keep an elephant. The idea that Bali has to be expensive is quite misguided; check out this post on how you can travel on Bali for less than $25 a day.
While Bali can be more affordable than you'd think, the best bargains are still to be found in other parts of Indonesia. For instance, try neighbouring Lombok or the island of Sumatra. Even further beyond, the more adventurous traveller will find tons of regions around Indonesia that are still relatively untouched by tourism and blessed with local prices.
Food in Indonesia is very tasty and typically very affordable. I had some great buffet meals on Bali for around a dollar (€0.70 / 60p). Even in Lombok’s tourist hotspot, the Gili islands, you can still get a plate of delicious nasi goreng (rice with vegetables, chicken and egg) for around $2 at the night market, or smaller snacks (like spring rolls) for 50ct each. If you are after something a little more up-scale or Western style food, you can easily find a meal in a sit-down restaurant in the $6 to $10 range.
Read This: How You Can Take The Leap & Travel The World
3. Cambodia
The ancient temples of Angkor Wat are one of the highlights of Cambodia.
Cambodia may just be the most affordable country in mainland South-East Asia. It is also one of the poorest, so a little patience is required when it comes to such things as the local transporation. You will be travelling mostly in very old buses and cramped minivans, but once at your destination you can enjoy relative comfort for very little.
You can easily find respectable dorm beds in the capital Phnom Penh or in Seam Riep (the city right next to the ancient temple complex of Angkor Wat) in the $3 to $5 range. Basic private rooms can be found for around $10. The food in Cambodia is generally thought of as not quite so tasty and distinct as that in Thailand or Vietnam, but it still has some great dishes and if you eat locally you can do so for mere dollars. I particularly enjoyed getting street food in Phnom Penh, as there are some fun night markets around a square where rugs are laid down so you can buy your food from a stall and eat it 'picknick style'.
Not only is Cambodia cheap, it's also a country that has a lot to see. Most people go there to see the temples of Angkor Wat, though because the site is so large you can still feel like you're exploring some of its temples on your own. Want to relax on a beautiful beach? Consider going to Sihanouksvile, or to the nearby island of Koh Rong where you can still have a stunning tropical beach all to yourself.
Read my Cambodia backpacking guide »
4. Nepal
Nepal: one of the top places in the world to go hiking
Nepal is renowned as one of the best places in the world for safe and affordable mountain trekking, making it a backpacker favourite. Despite their remoteness, many routes through the Himalayas have teahouses and lodges along the way where you can eat, sleep, and recover. Home to eight of the world's 10 highest peaks, Nepal is a great choice for those looking for a more active trip, though equally you can choose to just chill out in Kathmandu.
You can survive on about $25 a day in urban areas, though it can be even less when trekking. Food is cheap, though can be very samey when trekking in the mountains off the main trails, as only limited supplies are available in these remote areas.
5. Nicaragua
Nicaragua has long been off the radar due to years of political and civil unrest, but today the country is stable and open for tourism—and becoming increasingly popular. Right now it may well be the cheapest destination in Central America (though Guatemala and Honduras are close).
If neighbouring Costa Rica is outside of your budget, then Nicaragua makes for a perfect alternative. Prices are nearly as low as in much of Southeast Asia. In 2013 I was easily able to find a good dorm bed in the colonial city of Grenada just a block from the main square for just $5 a night. Basic privates (with a shared bathroom) can be found for around $10 a night even in the most touristy town of San Juan Del Sur.
Keep in mind that accommodation prices can easily be double that if staying in popular Western-owned places of accommodation. Nicaragua has a bit of a burgeoning backpacker party scene and many popular Western-owned hostels (such as Naked Tiger, Pacha Mama or Bigfoot) charge around $10 a night for a dorm or $20 for privates. But that's also not exactly a bad deal.
Local food in Nicaragua is decidedly 'beans and rice' based and doesn't offer that much variety, though eat locally and you will be paying just two or three dollars for breakfast or a lunch/dinner meal for $4 - 5. There's some great inexpensive seafood to be had in many places, so if lobster is normally outside your budget you can gorge on it here.
Read my Nicaragua backpacking guide »
6. India
Varanasi, India
India is a country I have not yet been to, so I am relying on information from my travel friends here. It would just be very odd not to include India in an article about budget travel!
I'm told that while India is no longer as dirt cheap as it once was, it still is one of the cheapest countries around. It is highly dependent on where you go however, as India is a massive country and regional price differences are increasing. One thing I keep hearing, and which a little research easily confirm, is that India can be very inconsistent in terms of cost vs. value. Some dorm beds can be booked for around a dollar a night in some areas, but at this price you shouldn’t expect these dorms to resemble in any way the modern ones you find in other countries, and cleanliness and comfort may just not be very high.
On the other hand, Indian food is obviously very tasty and also very cheap: you can find an average full meal for around $2, and many types of snacks are sold for as little as 20ct.
While India can still be one of the world's absolute cheapest destinations—and some backpackers do disappear there for many months on end—keep in mind that it's not necessarily the easiest country for your first backpacking trip. As everyone who has been to India tells me: expect sensory overload and a fair bit of hassle. Bargaining is a big part of the culture, and you will have to do a lot of it to keep costs down. But India is obviously a top budget destination, and it would be remiss not to list it here.
7. Bolivia
Salt flats of Uyuni
Bolivia is the ultimate cheapie of South America by far (see also: my South America cost of travel overview). I went to Bolivia twice; first a couple of years ago and more recently in 2014. The first time I was stunned by how inexpensive it was, and the second time it did strike me that prices weren't quite as low as I remembered. This probably has to do with the somewhat improved fortunes of the country as of late. Still, if you want to go to South America and spend only minimally, Bolivia is where you should go.
A backpacker willing to rough it a bit can find beds in the $5 - 6 range, though the better and more organized hostels and guesthouses typically cost around $10 for a dorm bed (though usually some basic breakfast is included). It seems Bolivia may slowly be edging a little closer to Peru in terms of costs, though that still ranks it as one of the cheapest South American destinations.
By eating locally you can often find a set meal for about 20-25 Bolivianos (or $3) which will include a soup, a main (usually rice with some meat and salad) and a small desert. Western or international meals will typically cost closer to 40 - 50B, but that is still nothing to frown at. Bolivia is a very popular country to study Spanish as course prices are lowest and the Bolivian dialect is quite pure and easy to follow; the town of Sucre in particular seems to be a Spanish learning centre.
Much of Bolivia is quite rugged as it's largely high up in the Andes, so you have to be a little adventurous to enjoy it to its fullest. Fortunately it also has some of South America's most amazing sights: from the world's highest lake Titicaca to the seemingly infinite salt flats of Salar de Uyuni, where sky and ground seem to merge at the horizon.
Read my Bolivia backpacking guide »
Where else?
Are there only 7 of these? Of course not, but it's a nice number for a list. Here are some other worthy contenders:
- Laos and Vietnam are very affordable, roughly similar to Cambodia.
- Peru is a little more expensive on average than Bolivia, and has a lot more price variation (depending on how touristy a place is), but it's still amongst the cheapest countries in South America.
- Morocco and Turkey (outside Istanbul and touristy coastal area) offer excellent value for money. For Europeans they are relatively close to home.
- Argentina can be a relative bargain if you bring dollars and exchange them at the unofficial 'blue rate'. See my South America cost of travel post for more details.
- I haven't been everywhere in the world! Check the comments below for further suggestions.
Of course, everything still depends a lot on your travelling style and level of savviness/frugality. Keep in mind that the prices in this post assume that you are not going for the luxury options. For instance, rooms with AC in tropical countries are more expensive than those without, but this post assumes that as a low-budget traveller you will adjust to the local climate. Food costs assumes you are okay with eating food from street vendors or low-cost eateries. A great benefit of travelling in this way is that not only will you save a lot of money, but you will more easily experience more of the local culture.
More about travelling cheaply
- How You Can Take The Leap & Travel The World
Travelling to cheap countries can enable you to travel much longer. Some inspirational words and links on how to make a big trip happen. - 12 Money-Saving Tips for the Shoestring Backpacker
How to keep your costs under control, even in more expensive destinations. - Why I Love to Use Momondo to Find Cheap Flights
My favorite website for booking flights offers lots of tools to find the cheapest option. - How To Afford Travel As A Student (Even To Expensive Places)
Living on a student income does not have to prevent you from travelling — this guest posts explains how. - Check out my book, Travel the World Without Worries. Available as ebook and paperback, it details tons of money-saving strategies that will reduce your costs dramatically. You will also learn how to set a budget, monitor your spending, haggle, avoid scams, and make substantial savings on airfare, accommodation and food.
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