Budget travel through Latin America offers an exceptional combination of affordability, cultural richness, and natural diversity. The region consistently ranks among the world’s cheapest destinations, where travelers can experience world-class attractions without depleting their savings. The following eight destinations provide the best value for those seeking authentic experiences, stunning landscapes, and vibrant cultures from anywhere in Latin America.
1. Bolivia: Otherworldly Landscapes at Rock-Bottom Prices
Daily Budget: $20-30 USD
Bolivia stands as the absolute cheapest country to visit in Latin America, making it ideal for backpackers and budget-conscious travelers. The country’s most iconic attraction, the Salar de Uyuni, represents one of Earth’s most surreal landscapes—a vast salt flat covering 10,000 square kilometers that transforms into a mirror-like surface when covered with rainwater.
Accommodation in La Paz costs as little as $6 per night in hostels, while local meals at comedores (simple restaurants) run $2-3. A three-day budget tour of the Salar de Uyuni typically costs $100, with transportation from La Paz to Uyuni available via overnight bus for just $20-30, allowing travelers to save on accommodation while traveling. The country’s public transport system is remarkably affordable, with minivan rides costing just $4 and long-distance buses typically ranging from $15-23.
Beyond the salt flats, La Paz itself showcases the vibrant Mercado de las Brujas (“Witches’ Market”), while travelers can also explore the otherworldly colored lakes and volcanic landscapes of the altiplano region.
2. Nicaragua: Central American Paradise on a Backpacker’s Budget
Daily Budget: $20-35 USD
Nicaragua combines affordability with remarkable diversity, offering colonial architecture, volcanic landscapes, pristine beaches, and island paradise experiences. Granada and León represent the country’s most iconic cities, with Granada being slightly cheaper at an average of $50 per day compared to León’s $68 per day.
Accommodation in Granada’s budget hostels costs around $8-15 per night, while meals range from $1-4 for local street food like pupusas and traditional dishes. Transportation is exceptionally cheap—a recent traveler spent only $143 on activities over six days, averaging just $11 per day, including volcano boarding at Cerro Negro, visits to Masaya Volcano, and boat tours on Lake Nicaragua.
Ometepe Island, located in Lake Nicaragua, attracts budget travelers seeking a laid-back atmosphere with affordable beachfront accommodations and the famous San Ramón waterfall hike. The country’s well-developed backpacker infrastructure and abundance of cheap shuttle buses between major destinations make multi-destination itineraries feasible on minimal budgets.
3. Guatemala: Ancient Ruins and Vibrant Markets for Under $40 Daily
Daily Budget: $25-40 USD
Guatemala offers an exceptional blend of pre-Columbian history, indigenous culture, and natural beauty at remarkably low prices. Antigua, a UNESCO World Heritage site featuring colonial architecture and surrounding volcanoes, serves as a perfect base for exploring the region. Typical accommodation costs range from $16-22 per night, while meals at local markets cost $2-4.
Lake Atitlán, surrounded by indigenous Mayan villages, provides some of the most picturesque scenery in Central America. While Lake Atitlán averages $41 per day due to its popularity with tourists, San Pedro Village and Panajachel offer budget-friendly options at $12-26 per night. Free attractions include numerous murals in villages like San Juan, while Fuentes Georginas Hot Springs cost only $8.
Iconic activities like the Acatenango volcano hike can be booked for under $300, while ATV coffee tours in Antigua cost approximately $97. Travelers using shared shuttles and local colectivos (shared vans) can keep transportation costs exceptionally low, with shuttle buses between popular destinations typically costing $25-30.
4. Peru: Ancient Wonders Without the Luxury Price Tag
Daily Budget: $30-50 USD
Peru’s legendary Machu Picchu and the broader Incan heritage represent some of the world’s most significant archaeological treasures, yet Peru remains highly affordable. A budget traveler can find hostel dorm beds for $2-3 per night in Cusco and Huaraz, with prices only slightly higher in other major cities.
A week-long trip to Cusco including Machu Picchu on a backpacker budget totals approximately $350 (excluding flights), with flexibility to experience free walking tours and explore the historic center. The Machu Picchu entrance fee ranges from $44-58, while the hydroelectric train alternative for budget travelers costs just $10-15 for land transport combined with a $60-80 entrance fee.
The Sacred Valley towns of Ollantaytambo and Chinchero offer exceptional value for accommodation and dining, while overnight buses throughout Peru cost $15-20, allowing travelers to save on accommodation while covering long distances. Street food throughout the country remains abundant and authentic—a menu of the day (menu del día) typically includes an appetizer, main course, and drink for a few dollars.
5. Ecuador: Compact Country with Maximum Diversity
Daily Budget: $21-51 USD
Ecuador’s geographical compactness makes it ideal for travelers with limited time or budgets, as the country’s diverse ecosystems—Amazon jungle, Andes mountains, and Pacific coast—lie within close proximity. Budget hostels in Quito and Cuenca cost around $5 per night, while meals at comedores cost $2-3.
The capital Quito features a historic center that can be explored affordably, with metro cards costing just $0.35 per ride. Overnight buses between major cities like Quito and Cuenca cost approximately $12, allowing travelers to save on accommodation. Cuenca, a charming colonial city, averages around $35 per day for mid-range comfort, with taxi rides typically costing $2-3 and public transportation passes enabling daily commuting for minimal costs.
Activities like the iconic Devil’s Nose Train ride offer scenic experiences for reasonable prices, while day trips to natural attractions like waterfalls and cloud forests provide excellent value compared to other South American destinations. The country’s use of the US Dollar simplifies budgeting for North American travelers.
6. Honduras: Caribbean Beaches and Affordable Island Life
Daily Budget: $40-60 USD
Honduras remains one of Latin America’s most underrated budget destinations, particularly for travelers seeking Caribbean island experiences without Costa Rican prices. Roatán, the most popular island destination, averages $43 per day for mid-range travelers, with budget options available for $17 per day.
Hostels in Roatán cost approximately $15-18 per night for dorm beds, making island accommodation comparable to mainland prices. A three-day trip to Roatan typically totals around $128, including mid-range hotels, meals, and local transportation. The ferry from La Ceiba to Roatán costs approximately $40, while flights represent the expensive option at around $70-80.
Diving and snorkeling opportunities in Honduras rank among the world’s best, with the country hosting stunning coral reefs and marine biodiversity. Local transportation via “chicken buses” (repurposed North American school buses) provides the most economical way to explore the mainland. The Bay Islands offer a more affordable alternative to other Caribbean destinations while maintaining comparable natural beauty and adventure opportunities.
7. El Salvador: A Compact Country Gaining Popularity with Budget Travelers
Daily Budget: $20-50 USD
El Salvador, one of Central America’s smallest nations, offers exceptional value with impressive density of attractions within short distances. The beach town of El Tunco serves as a popular base, with hostels offering ocean views for $10-15 per night. A complete 10-day trip on a backpacker budget averages $300-400, including all accommodation, food, transport, and activities.
Meals are remarkably affordable—pupusas cost $1-1.50 each (with two being sufficient for a meal), while restaurant meals range from $6-12. Local buses cost just $0.25-0.50 per ride, making intercity travel extremely economical at $1-4 per trip. Recent travelers reported spending just $61 per day per person over a 15-day trip, with transportation comprising only $9.50 per day.
Suchitoto, the country’s last remaining colonial town, offers cultural immersion with boat tours on Suchitlán Lake, colonial architecture, and authentic dining experiences. The country’s nickname “Tierra Blanca” (White Land) reflects its volcanic heritage, with numerous volcanoes and national parks accessible to budget travelers. El Salvador’s nickname “Bitcoin Beach” reflects its forward-thinking approach to digital currency, particularly in beach towns.
8. Colombia: Diversity and Innovation at South American Prices
Daily Budget: $30-50 USD
Colombia has dramatically transformed its tourism reputation, now ranking among South America’s most affordable and welcoming destinations. Medellín, known as the “City of Eternal Spring” for its perpetual pleasant climate, offers exceptional value with dorm beds available for around $8 and budget meals for approximately $4. A recent traveler reported mid-range spending of $121 per day across Colombia, making it comparable in price to Bolivia.
Bogotá’s vibrant street art scene, museums, and markets provide cultural immersion without premium prices, while the coffee region near Salento offers budget coffee farm tours and hiking through the Cocora Valley. Public transport throughout Colombia remains affordable, with metro systems in major cities providing efficient and economical urban navigation.
Cartagena, while more touristy than other Colombian destinations, remains cheaper than comparable Caribbean cities. The country’s safety improvements have made it increasingly accessible to budget travelers seeking authentic experiences beyond standard tourist circuits. Colombia’s combination of Caribbean beaches, Andean mountains, and Amazon jungle access within a relatively compact geography provides excellent value for diverse experiences.
Money-Saving Strategies for Latin American Travel
To maximize your budget across these eight destinations, several proven strategies consistently deliver savings. Eat where locals eat—street markets and comedores serve authentic, delicious meals for $2-4, far cheaper than tourist restaurants. Utilize local transportation exclusively—colectivos, chicken buses, and metro systems cost a fraction of taxis and tourist shuttles.
Hostels with shared dorm rooms typically cost 50-75% less than private hotel rooms while offering unmatched opportunities to connect with fellow travelers and receive insider tips. Many hostels across the region offer volunteer programs where guests exchange work for free accommodation, ideal for extended stays. Free walking tours operate in most major cities and provide excellent orientation and local knowledge at no cost.
Travel during shoulder seasons (April-May and September-October) rather than peak seasons (June-August and December) to access lower prices for accommodation and flights while avoiding the largest crowds. Take advantage of overnight buses to save money on both transportation and accommodation simultaneously—a nine-hour bus ride costs $30 while saving the cost of a hotel night. Negotiate prices politely in markets and for activities, as bargaining remains common practice throughout most of Latin America.
Practical Accessibility Considerations
Most of these destinations offer well-developed backpacker infrastructure with reliable tourism services, making them highly accessible for first-time travelers. Direct flights from major Latin American hubs (Mexico City, Lima, São Paulo) to these destinations typically cost $100-300, with budget airlines offering occasional promotional fares. Regional travel between these eight destinations via buses costs $20-60, making multi-country itineraries feasible on minimal budgets.
Visa requirements vary significantly by origin country—many nationalities enjoy visa-free access to Central American countries for up to 90 days as part of the Central America-4 (CA-4) agreement, which includes Guatemala, Honduras, El Salvador, and Nicaragua. Peru, Bolivia, and Ecuador similarly offer generous visa policies for most nationalities.
These eight destinations represent only a fraction of Latin America’s exceptional value opportunities, yet they collectively encompass the region’s most iconic attractions, diverse ecosystems, and vibrant cultures. Whether your budget allows $20 per day or $100 per day, Latin America’s generosity to budget travelers ensures unforgettable experiences at remarkably affordable prices.
