7 Cheapest Countries to Visit in South America

2025’s Cheapest Countries to Visit in South America

If you dream of traveling without spending too much, South America is one of the most affordable continents you can explore. It offers a mix of vibrant cities, ancient history, and breathtaking scenery, all at prices that are easier on your budget. Meals at local spots often cost just a few dollars, and public transport can get you across towns or even borders for less than you might expect. Affordable hostels and mid-range hotels are easy to find, which makes planning your stay much simpler.

Some countries in South America are noticeably far cheaper than others, so you can travel longer and see more on the same budget. These destinations let you experience adventure, culture, and relaxation without the stress of overspending.

In this blog, you’ll learn about the seven cheapest countries to visit in South America and why each one deserves a place on your itinerary.

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#1. Paraguay

Paraguay rarely makes it onto a South America travel bucket list, and that’s exactly why it feels like such a hidden treasure for budget travelers. It’s not packed with tourists, which means prices stay low, experiences feel authentic, and you can see parts of the continent that most travelers skip. Daily costs are incredibly cheap here—so cheap that you’ll probably double-check your math after a few days. You can easily get by on $15–25 USD per day, making Paraguay one of the most affordable countries to travel in South America in 2025.

Accommodation is your first pleasant surprise. Hostels in cities like Asunción and Encarnación cost around $8–12 USD a night, and private rooms usually range from $15–20. These prices don’t mean sacrificing comfort either. Many hostels are modern, clean, and run by locals who are happy to help you get oriented in a country not often covered in guidebooks.

Food costs are just as gentle on your wallet. A filling meal at a local restaurant or market stand costs about $2–4 USD. Sit-down restaurants serving traditional dishes like sopa paraguaya or chipa rarely cross the $6 mark. Three full meals in a day might cost less than $10, and street food snacks cost pennies.

Transport stays consistent with the overall low cost of travel. City buses in Asunción cost less than $1 USD per ride, and short taxi journeys are usually under $3. Paraguay doesn’t have a huge long-distance bus network compared to other South American countries, but the routes it does offer are cheap and reliable.

As for activities, this is where Paraguay really shines for slow travelers. You won’t find flashy tourist attractions with overpriced entry fees. Instead, you’ll spend your time exploring colonial towns, visiting the Jesuit missions near Encarnación, or hiking trails in the Chaco. Entry fees are low, and many experiences—like wandering local markets or enjoying riverside walks—are free.

One thing to prepare for, though, is the language barrier. English is not widely spoken outside a handful of hostels or hotels. If you don’t speak much Spanish, traveling independently can feel challenging at times. Joining a day tour or hiring a local guide is a smart option if you want to go off the beaten path.

Paraguay is far from polished, but that’s what makes it so rewarding. You get authentic culture, friendly people, and experiences that don’t feel manufactured for tourists. On top of that, you’ll spend far less than in neighboring countries like Brazil or Argentina. If you’re looking for value and adventure in equal measure, Paraguay is the place that will surprise you most.

#2. Bolivia

Bolivia is hands down one of the cheapest countries to travel in South America, but there’s a catch if you’re visiting with a U.S. passport. The $160 visa fee hits you as soon as you enter, and it can feel like a punch to the wallet, especially if you’re traveling on a tight budget. At first, you’ll probably think, “Well, there goes my savings.” But stay for more than a week or two, and you’ll quickly see how Bolivia makes up for it. The daily costs are so low that the visa starts to feel more like a one-time investment than a drain.

Accommodation is where you’ll first notice how much further your money goes. Hostels in La Paz, Sucre, and Potosí are easy to find for $8–10 USD a night. Smaller towns like Copacabana still surprise travelers with beds as cheap as $6. If you prefer more privacy, a decent private room usually costs under $15. Even in busier tourist spots like Uyuni, dorms hover around $12, and privates rarely climb above $14. These prices are consistent across the country, which makes Bolivia one of the rare places where traveling longer doesn’t punish your budget.

Bolivian food is the main appeal. Locals eat “almuerzo” menus at small restaurants that give you soup, a main dish, and sometimes even a drink for $2–3 USD. If you stick to these spots, you’ll easily spend less than $10 for three hearty meals a day. Street food is everywhere, and grabbing a warm salteña or empanada for less than a dollar quickly becomes part of the daily routine. The portions are filling, the flavors are authentic, and the price is hard to believe.

Getting around is just as cheap. A bus ride across town usually costs between 20 and 35 cents. Taxis are widely available, and even longer trips across a city rarely cost more than $3. For bigger journeys, Bolivia has some of the most affordable long-distance buses in South America. A night bus from La Paz to Uyuni or Santa Cruz costs between $15–25 USD. The buses aren’t luxurious, but most are reasonably comfortable and safe enough to get you where you’re going without emptying your wallet.

When it comes to activities, Bolivia continues to surprise travelers. The Salar de Uyuni is the star attraction, and even though a three-day tour costs around $175–200 USD, it’s a once-in-a-lifetime experience that feels worth every dollar. On the cheaper side, you can watch Cholita wrestling in La Paz for $8, wander through the city’s Witch’s Market for free, or explore Valle de la Luna for just $2. Even multi-day adventures like trekking or visiting national parks are much more affordable compared to other countries on the continent.

Like with Paraguay, language barrier is a reality. Outside the main tourist areas, English is rarely spoken. If you don’t know much Spanish, arranging bus tickets or booking tours can feel overwhelming. Joining a group, hiring a local guide, or even learning a few key phrases can make a huge difference. It helps you avoid confusion, and it adds to the experience since you’ll interact more naturally with locals.

So yes, that visa fee stings at first, but the math works in your favor if you stick around. Between cheap hostels, bargain meals, affordable transport, and low-cost activities, Bolivia easily balances the scales. Stay a while, take your time, and you’ll see why so many travelers call it the best value destination in South America.

#3. Ecuador

Ecuador is one of those countries where you can live like a backpacker on a budget or treat yourself to comforts without ever breaking the bank. Daily expenses here typically run $25–40 USD depending on how you travel, which makes Ecuador a favorite among long-term travelers in South America. Add in its compact size and incredible diversity—from beaches to volcanoes to colonial cities—and you get maximum adventure for minimal spending.

Accommodation is affordable across the country. Dorm beds in hostels usually cost $8–12 USD, and private rooms range from $15–25 USD. In cities like Quito or Cuenca, you’ll find modern hostels with great common areas and reliable Wi-Fi, perfect if you want to connect with other travelers. Coastal towns like Montañita or Manta often have cheaper options, especially during low season. Even in the Andes, where you’d expect prices to climb, it’s not hard to find a cozy room for under $20.

Food is another draw for budget-conscious travelers. A set “almuerzo” menu—usually soup, a main dish with rice and meat, juice, and sometimes dessert—costs about $2–3 USD. Street snacks like empanadas or plantain chips are often under $1. If you feel like splurging, mid-range restaurants rarely cost more than $10 for a full meal. You can easily eat well in Ecuador for under $10 a day if you stick to local places.

Transport is famously cheap. Buses across cities usually cost $0.25–0.35 USD per ride, and intercity buses run at about $1–1.50 USD per hour of travel. That means you can ride four hours from Quito to Baños for around $5. Taxis within cities usually stay under $3, though it’s smart to agree on the fare before getting in.

Activities in Ecuador cover all types of travelers. You can wander Quito’s Old Town for free, hike to waterfalls in Baños for $1–2 entry, or climb Cotopaxi Volcano with a budget tour for around $40. The Galápagos Islands are the exception—they’re far more expensive than the mainland—but most backpackers skip them and still find Ecuador unforgettable. Markets, hiking trails, thermal baths, and cultural sites keep you busy without draining your cash.

If you don’t speak Spanish, you’ll get by in bigger cities where many locals are used to tourists, but once you head into smaller towns, English is rare. That’s part of the charm, though. It forces you to connect with locals in creative ways and learn a few useful phrases.

Ecuador may be small, but it delivers a huge variety of experiences at prices that make extended travel possible. When you chase adventure in the Andes, relax by the Pacific coast, or explore vibrant colonial towns, you’ll find that Ecuador stretches your budget in the best way.

#4. Nicaragua

Nicaragua is often called the budget traveler’s dream of Central America, and for good reason. Daily costs hover around $20–35 USD, which makes it one of the cheapest countries to explore in the region. You get colorful colonial towns, active volcanoes, surf-ready beaches, and welcoming locals—all without the high prices you’ll find in neighboring Costa Rica. If you’re looking for value and variety, Nicaragua delivers.

Accommodation is easy on the wallet. Hostels in Granada, León, or San Juan del Sur usually cost $8–12 USD for a dorm bed. Private rooms are often between $15–25 USD. Many hostels come with extras like pools, open courtyards, or rooftop terraces, which means you don’t have to pay more for comfort. If you travel outside the main tourist towns, prices can dip even lower.

Food is one of Nicaragua’s strongest points for budget travelers. Street vendors and small comedores serve full plates of gallo pinto (rice and beans), plantains, and meat for $2–3 USD. Fresh juices or coffee rarely cost more than a dollar. Even if you eat three meals a day at sit-down restaurants, you’ll likely spend under $10 daily. And if you’re near the coast, fresh seafood is surprisingly affordable compared to other countries.

Transport keeps the savings going. Local buses, often old school buses repurposed from the U.S., cost just a few dollars for long distances. A two-hour journey might run $2–3 USD, and city buses are usually under $0.50. Taxis are affordable too, but it’s smart to agree on a price before hopping in.

When it comes to activities, Nicaragua gives you plenty to do without heavy spending. You can hike Cerro Negro Volcano for around $10–15, kayak in Lake Nicaragua for under $20, or simply wander colorful colonial streets for free. Surf lessons at San Juan del Sur start at $20, and entry to national parks usually stays between $2–5.

The language barrier is real here since English is less common outside tourist hubs, so brushing up on Spanish helps a lot. Locals are friendly and patient, so even a few words go a long way.

Nicaragua may not be as polished as Costa Rica or Panama, but that’s part of its charm. You get raw beauty, adventure, and culture at prices that let you travel slower and longer. If you’re a budget traveler who wants more than the typical tourist trail, Nicaragua is hard to beat.

#5. Guatemala

Guatemala is a backpacker favorite, and once you arrive, it’s easy to see why. With daily expenses averaging $25–40 USD, it offers a mix of affordability and incredible experiences. You’ll find yourself wandering colorful markets, exploring ancient Mayan ruins, hiking volcanoes, and soaking in lakeside views—all at a price point that won’t make you double-check your wallet every night.

Accommodation is one of the biggest perks here. In Antigua or Lake Atitlán, you can find hostels for $8–12 USD per night, with many offering perks like communal kitchens, hammocks, or mountain views. Private rooms start around $20–30 USD, making them affordable for couples or travelers wanting more space. If you venture off to smaller towns, prices often drop even further.

Food is just as easy on the budget. Street stalls sell tostadas, tamales, or pupusas for under $1. Hearty sit-down meals of meat, rice, beans, and tortillas rarely exceed $3–5. In Antigua or Guatemala City, you’ll find trendy cafés and international spots where meals cost closer to $7–10, but even then, it’s cheaper than most other travel destinations. Coffee lovers are in for a treat since Guatemala grows some of the best beans in the world, and a cup in a local café costs just $2–3.

Transportation is an adventure in itself. Chicken buses—those brightly painted former U.S. school buses—are the most budget-friendly way to get around, with fares ranging from $1–3 depending on distance. Shuttle vans are safer and more comfortable for longer routes, especially to tourist hubs like Lake Atitlán or Semuc Champey, and usually cost $10–15. Boats around Lake Atitlán are another everyday expense but remain cheap, around $2–3 per ride.

Activities in Guatemala give you a lot of value for your money. Visiting Tikal, the crown jewel of Mayan ruins, costs around $20 for entry, and guided tours add another $10–15. Volcano hikes like Pacaya or Acatenango range between $10–40 depending on whether you go independently or with a guide. Exploring colorful markets like Chichicastenango is free, unless you’re tempted by the handmade textiles and crafts—which, to be honest, most travelers are.

The one challenge some travelers face is language. English is less common outside major tourist spots, so having basic Spanish helps tremendously. Locals are warm and welcoming, but navigating markets, buses, or homestays becomes much easier if you know key phrases.

Guatemala is more than just a budget-friendly country—it’s a destination that rewards curious travelers with a mix of culture, history, and natural beauty. Watch the sunrise over Lake Atitlán, roast marshmallows on volcanic lava, or explore ruins hidden in the jungle, and you’ll quickly realize how much value Guatemala offers for what you spend.

#6. Honduras

Honduras often slips under the radar for many travelers, but those who do make the trip are rewarded with some of the cheapest prices in Central America. On average, you can get by with $25–35 USD a day, and that covers your hostel bed, meals, local transport, and even a few activities. The best part? You’ll find beaches, jungle adventures, and cultural gems all rolled into one affordable destination.

Accommodation here is surprisingly budget-friendly. In places like Tegucigalpa or San Pedro Sula, hostels start at $8–12 USD a night. But in the Bay Islands, where diving is the star attraction, you’ll pay around $12–20 USD for a dorm bed and $25–40 for a private room. If diving is on your list, Roatán and Utila are two of the cheapest places in the world to get PADI-certified, with courses starting around $250–300 USD, far less than you’d pay in the Caribbean or Southeast Asia.

Again, food is an advantage. Street vendors sell baleadas—thick tortillas stuffed with beans, cheese, and sometimes meat—for as little as $1. A sit-down meal at a local restaurant averages $3–5. More touristy spots, especially on the islands, however, range from $8–12. If you stick to comedores, the small family-run eateries, you’ll eat well and spend less.

Transport is a mix of chicken buses, shared taxis, and ferries. Local buses cost $1–3 depending on the route. Ferries to the Bay Islands are pricier at around $30–35 one way. If you’re staying inland, you’ll find most transportation costs reasonable, and shuttles connecting tourist hubs average $10–15.

As for activities, Honduras gives you a lot of bang for your buck. The Mayan ruins of Copán cost about $15 to enter, and guided tours are another $10–20. National parks, like Pico Bonito or Cusuco, have entry fees of around $5–10, with optional tours for a bit more. Of course, the Bay Islands are a world-class diving destination, and even if you don’t dive, snorkeling trips run about $20–25.

One thing to keep in mind is safety. Although Honduras has had its struggles, most tourist areas are much safer than the headlines suggest, especially if you stay alert and follow local advice. Another small challenge is language—English is spoken on the Bay Islands but much less so inland, so having some Spanish will make your travels smoother.

Honduras is a country of contrasts: laid-back Caribbean beaches, dense jungles, and ancient ruins. Pair that with some of the lowest prices in the region, and you’ve got yourself a destination that’s both exciting and affordable.

#7. Peru

Peru is one of those countries where your money goes further than you’d expect. On a daily budget of $30–40 USD, you can cover your hostel stay, hearty meals, local transport, and even a few bucket-list activities. The country’s mix of mountains, jungle, desert, and coast makes it an incredible bargain, especially when you think about the world-famous sites you’ll get to see along the way.

Accommodation is very affordable. In Lima, Cusco, and Arequipa, dorm beds average $8–12 USD a night, and private rooms in budget hotels range from $20–30. Prices climb a little in more touristy towns like Aguas Calientes near Machu Picchu, but even there you can find budget guesthouses for around $25. Many hostels include breakfast, which stretches your budget even further.

Food is one of Peru’s biggest attractions. A set lunch menu at a local eatery, known as a menú del día, usually costs $2–4 and comes with a soup, main dish, and drink. Street food is even cheaper, with snacks like anticuchos (grilled meat skewers) or empanadas going for about $1. If you want to splurge on Peruvian specialties like ceviche or lomo saltado in mid-range restaurants, expect to spend $8–12.

Transport is also easy on the wallet. City buses and minibuses cost less than $1, and long-distance buses range from $10–25 depending on distance and comfort level. The bus system is well developed, so you can easily travel between cities like Lima, Cusco, and Arequipa. Taxis are cheap too, though it’s best to agree on a price before hopping in.

When it comes to activities, Peru is unbeatable for value. Entrance to Machu Picchu is $42 for foreign visitors, which is expensive by local standards but a must-see for most travelers. If trekking is more your style, the Inca Trail is pricey at $600+, but alternative hikes like the Salkantay or Lares treks cost about half that. Other highlights like Rainbow Mountain tours go for $25–30, and Colca Canyon tours in Arequipa start around $20. Even museum entries and city walking tours are often free or very cheap.

One thing to keep in mind is language. Outside of tourist areas, English isn’t widely spoken, so even basic Spanish will go a long way in helping you navigate buses, order food, and bargain for prices. The cultural exchange is part of what makes traveling here so rewarding.

Peru gives you a chance to see iconic wonders, try some of the best food in South America, and experience a mix of landscapes—all on a budget that leaves room for adventure. If you want value for money and unforgettable travel memories, Peru is a country you’ll be glad you added to your list.

Summing Up

Traveling across South America doesn’t need to drain your savings, and these destinations prove it. Each country on this list gives you something unique to experience and enjoy dramatic scenery, colorful traditions, and flavorful dishes and still having money left to stretch your trip further.

What makes the region even more exciting is the diversity. There's so much you can do here: you can wander through ancient ruins one day, ride a night bus across mountains the next, and end your week relaxing in a laid-back town with friendly locals. The journey feels richer because you’re not rushing through pricey hotspots, but actually taking time to enjoy everyday life.

If your dream is to explore new cultures and landscapes and not worry about high costs at all, South America is the right place to make that happen.

Stop reading, pack your bag, plan smart, and let your adventure begin!