How much does it cost to go to Latin America?
You can expect a budget-friendly trip to Latin America to cost between $1,200 and $1,300 per month. Your final number depends heavily on how you travel and exactly where you go in South and Central America. Shoestring backpackers often manage on $25 to $50 per day by prioritizing hostels and local transport. Mid-range travelers, who usually prefer private rooms and faster transit, should plan for a daily budget of $50 to $100. Trust me, having that financial buffer is a lifesaver when unexpected delays pop up.
While the average daily expense for a standard vacation, according to Explorify Expeditions, hovers around $81.47 per person, costs in cheaper regions can drop to around $25 per day. Three things will make or break your budget:
- Travel pace
- Accommodation choices
- Frequency of organized tours
How do travel budgets vary by region?
The biggest cost difference between Central and South America comes down to how you get around. Bus travel in Central America is inexpensive due to shorter distances, but you'll often need domestic flights to cover the vast expanses of the South.
Rural areas across both regions are consistently cheaper than metropolitan hubs or tourist-heavy coastlines. Prices for accommodation and local cuisine skyrocket in popular hotspots compared to off-the-path villages.
What is the average cost for a trip to South America?
Where you land on the map dictates what you spend in South America. Andean nations like Peru, Ecuador, and Bolivia are the most affordable; you can easily get by on a monthly budget of $1,200. In Bolivia, costs can drop to as low as $25 per day for frugal travelers.
In contrast, the Southern Cone is much more expensive. A trip to Chile, Uruguay, or Brazil often demands daily expenses upwards of $70 to $80 per person. Argentina and Colombia generally act as mid-range options. Getting around is what really eats into your budget due to the continent's massive size; while bus travel remains affordable, essential domestic flights between major hubs often increase overall spending.
What is the average cost for a trip to Central America?
Central America is generally affordable, though costs rise in tourist-heavy nations. Nicaragua, Guatemala, El Salvador, and Honduras are the cheapest countries, where a daily budget of $30 to $40 is often sufficient. However, Costa Rica and Belize are the most expensive destinations in the region. Backpacking costs in Belize frequently exceed $50 per day, and border crossing fees add another $30 per entry.
Panama sits comfortably in the middle. You can keep costs down if you stick to "chicken buses" and eating street food rather than dining in tourist restaurants. It’s a chaotic, colorful experience that I honestly think every traveler should try at least once.
Which countries fit your budget?
Where you choose to go matters more than anything else—daily costs can jump by 200% just by crossing a border. You can basically split the continent into three price brackets:
- Budget (Bolivia, Nicaragua)
- Mid-range (Colombia, Argentina)
- Luxury (Chile, Costa Rica)
If you stick to places where your currency is strong, you can stay on the road much longer.
Which are the cheapest countries to visit?
Bolivia, Nicaragua, and Paraguay are easily the cheapest spots in Latin America. Daily expenses in Bolivia typically range between $16 and $30 USD, making it a top choice for limited budgets. Nicaragua is the most economical option in Central America, while neighboring Honduras, El Salvador, and Guatemala also offer low costs. Paraguay stretches your dollar just as far, though it remains less visited.
Colombia and Peru give you a lot of bang for your buck thanks to favorable exchange rates. Travelers in Colombia frequently choose the menu del dia to get full meals for just a few dollars. Staying in hostels and eating street food in these nations keeps your spending low.
Which destinations have higher travel costs?
Chile, Uruguay, Costa Rica, and Panama require higher budgets due to stronger economies, currency dollarization, and established tourism sectors. Uruguay and Chile often feel as expensive as Europe, where accommodation and dining costs significantly exceed the regional average. In Central America, Costa Rica and Belize are known for premium costs thanks to their massive eco-tourism scenes. Panama also presents higher daily expenses due to its highly developed service economy and international business infrastructure.
Specific remote regions require budgets far above national averages; examples include:
- Galapagos Islands
- Easter Island
- Patagonia
You'll need a serious chunk of cash for logistics, entrance fees, and mandatory organized tours in these destinations. Brazil is another wildcard where prices in metropolitan hubs often rival Western standards.
What are the typical daily expenses?
To make your money last, strategic spending is key. A good rule of thumb is to spend 30% on accommodation and another 30% on meals. The remaining 40% covers transportation and activities, though these categories change depending on how much you move around.
Daily expenses range from $25 for travelers focused on basics to over $100 for those prioritizing comfort and convenience.
How much does accommodation cost?
Hostels are the go-to for saving cash, with dorm beds ranging from $4 USD in Bolivia to over $20 USD in Chile. The average price per night for a hostel in South America typically falls between $10 and $15 USD.
Private rooms in budget hotels or hostels generally cost between $25 and $50 USD per night. Travelers in expensive regions like Patagonia or Costa Rica often use wild camping to cut out accommodation costs completely. Prices in Central America work much the same way; a bed in Nicaragua costs a fraction of one in Belize.
What is the price of food and local cuisine?
The menu del dia is the best way to keep your budget in check, offering a soup, main course, and drink for a set price. These lunch specials in countries like Colombia and Peru typically cost between $3 and $5 USD. In my experience, this is the single best way to eat well without draining your wallet.
Street food is another cheap option, with snacks in Mexico often priced under $1 USD. You can save even more by shopping at local markets, though the low price of prepared local food often makes self-catering unnecessary. Dining in international restaurants will blow up your budget, often tripling the cost of a standard meal.
How much should you budget for transportation?
You'll probably spend about 20% of your cash on moving between destinations. Bus travel in Central America is still the cheapest way to go, where "chicken buses" frequently cost less than $5 USD. South America features comfortable long-haul coaches, though prices are higher in Argentina and Chile. If you can splurge for the "cama" (lie-flat) seats on these long hauls, your back will thank you later.
A standard long-distance bus ticket often ranges from $30 to $60 USD. Domestic flights can be pricey because there isn't much competition, often exceeding $100 USD per route. However, low-cost carriers in Colombia are lowering these rates. Overland travel cuts your costs way down but demands more time.
How much do popular adventures and excursions cost?
Big-ticket adventures like Machu Picchu don't fit into a standard daily budget—you need to save for them separately. While a standard day might cost $40, adventure excursions like exploring the Amazon Rainforest or trekking in Patagonia often demand hundreds of dollars upfront. Organized tours make the trip much more expensive because they include logistics, specialized guides, and equipment.
If you just look at daily averages, you'll run out of money for these highlights. Setting aside extra cash for these big moments ensures you don't go broke. Skipping these major sites reduces costs but eliminates the region's most iconic experiences.
What is the cost of visiting Machu Picchu and the Inca Trail?
The classic Inca Trail is one of the most expensive trekking experiences in the region because permits are so strict. A standard 4-day organized tour typically costs between $600 and $800 USD per person. This price covers entrance fees, guides, porters, and meals.
Travelers visiting Machu Picchu via the train system, as noted by Peru Travel With Purpose, generally spend around $250 USD for round-trip transit and admission tickets. Hikers on a budget usually pick the Salkantay Trek, which averages $200 to $400 USD for a 5-day journey. Booking the classic trail at least six months in advance is essential to secure a spot.
How much money do you need for the Galapagos Islands?
Visiting the Galapagos Islands will be the biggest single expense of your trip. All international visitors must pay a mandatory National Parks entrance fee of $100 USD upon arrival, plus a $20 transit control card. Round-trip flights from mainland Ecuador typically add another $300 to $500 USD to the total.
Land-based travelers generally spend $150 per day on accommodation and day trips. Multi-day cruises cost way more, ranging from $2,000 to over $8,000 USD for an 8-day itinerary. This single destination often costs as much as one month of backpacking in cheaper countries.
What are the entrance fees for national parks and reserves?
Entrance fees for protected areas vary but are usually pretty cheap compared to private tours. Admission to Iguazu Falls is about $20 USD on the Argentine side and slightly less for the Brazilian park. A standard 3-day jeep tour across the Salar de Uyuni in Bolivia typically costs between $150 and $200 USD, including food and basic lodging.
Trekking in Torres del Paine in Chile requires an entry fee of roughly $35 USD, with campsite reservations costing extra. Most National Parks accept only cash in the local currency at the gate.
Why should you use an eSIM for your Latin America trip?
eSIM technology is a cheap way to stay online without high roaming charges. Many travelers reduce their overall budget by switching to digital profiles instead of paying daily fees to home carriers. To stay connected easily, consider a specialized eSIM card for Latin America that covers multiple nations across the region.
Going digital means you don't have to waste time hunting for a SIM card shop every time you cross a border. Staying connected means you can book domestic flights, organized tours, and local transportation on the go. eSIMs also mean you won't lose your primary SIM cards during physical swaps at borders.
How do exchange rates and inflation affect costs?
Unstable economies can change how affordable a place is across South America. Inflation in nations like Argentina drives local prices up, often doubling the cost of goods in the local currency within months. However, favorable exchange rates often balance this out for travelers earning in strong foreign currencies.
If a currency devalues by 50% while inflation rises by only 40%, the destination effectively becomes cheaper for international visitors. On the other hand, a strengthening local currency in Brazil or Colombia increases daily expenses for tourists. Currency fluctuations can alter a travel budget by over 20% in a short period. Monitoring these rates is crucial to manage your money well during a trip.
How does the 'Blue Dollar' work in Argentina?
The "Blue Dollar" is an unofficial parallel exchange rate in Argentina that works outside of the government-regulated bank rate. This market exists due to strict currency controls and offers foreign visitors much better value than the official sector. Exchanging money at the Blue Dollar rate often gets you nearly double the amount of pesos, effectively halving the cost of a trip compared to using the official banking system.
You usually get this rate by bringing clean, $100 USD bills to exchange at unofficial houses known as cuevas. Make sure those bills are pristine; I've had cash rejected for the tiniest tear or ink mark. Western Union provides a secure digital alternative, allowing tourists to receive funds at a rate comparable to the parallel market. Using foreign credit cards or ATMs often defaults to lower exchange rates, significantly increasing daily expenses. This quirk makes Argentina one of the most affordable countries in South America for those managing money strategically.
How should you manage money across different currencies?
To manage your money well, you need a strategic mix of cash for rural areas and cards for modern cities. Ecuador, Panama, and El Salvador use the US Dollar as their official currency, which simplifies payments in these regions. This dollarization means you don't have to calculate exchange rates or worry about currency fluctuations in these specific nations.
But you'll still need cash for small towns, local buses, and paying street food vendors where digital terminals are rare. Withdrawing the maximum daily limit reduces the impact of fixed ATM fees on the total budget. Carrying small bills is also crucial, as breaking large bills is often difficult in remote parts of South and Central America.
How can you reduce your travel expenses?
The easiest way to save money is simply to slow down. Staying in one location for extended periods spreads out expensive long-distance transportation costs and frequently secures discounts on accommodation like hostels or apartment rentals. Travelers significantly reduce daily expenses by choosing local spots instead of tourist traps.
Using public bus travel instead of private shuttles often cuts transit spending by nearly 80%. Eating local cuisine, particularly the menu del dia or street food, saves you a lot compared to dining in international restaurants. Learning some Spanish saves you money, too; speaking Spanish helps visitors negotiate rates in markets and avoid the informal "tourist tax" often applied to non-speakers. Understanding exchange rates and using local currency rather than foreign dollars stops you from paying too much in daily transactions, keeping costs sustainable for long-term journeys.
Sources
- https://explorifyexpeditions.com/how-much-does-it-really-cost-to-travel-south-america-in-2025/
- https://www.perutravelwithpurpose.com/machu-picchu-in-2025-tickets-hours-must-know-info-for-your-visit/
