Cheapest Countries in Central America
What are the cheapest countries in Central America for travelers? Read on for a breakdown of each country in Central America by average budget, from the least expensive to the most expensive for travelers.
I have traveled extensively throughout Central America and visited every country in this region.
What makes up Central America? Central America is a region consisting of seven countries: Belize, Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica, and Panama. Some people also consider Mexico to be part of Central America, although it’s technically North America, so I didn’t include it in this ranking.
I still mention Mexico at the end of this list if you’re curious about costs of travel there, though.
Central America has long been a popular destination for travelers. It’s affordable and easy to travel through, which attracts many backpackers. It’s also convenient to reach from North America, which makes it an ideal destination even for shorter trips if you’re coming from the United States or Canada.
The countries of Central America are all Spanish-speaking with the exception of Belize, which is English-speaking. Each country offers something special for travelers, from amazing beaches to lush tropical jungles to ancient Mayan ruins to charming colonial cities to volcanoes and waterfalls and more.
What Is the Cheapest Country in Central America?
As I mentioned above, I’ve traveled to every country in Central America. Some countries I only stayed in for a week, while others I stayed in for several months. So I know this region of the world pretty well.
Below I’ve offered a breakdown of the cheapest to the most expensive countries.
I’ve provided estimated daily expenditures for food, lodging, and transportation ranging from a frugal backpacker budget to the budget of a mid-range traveler who is still focused on saving money.
You can easily splurge as a luxury traveler in Central America and spend a lot more than this, though. You’ll also want to budget more for tours and activities — these are just the estimated basic costs.
Here’s a look at the cheapest countries in Central America:
1. Guatemala
Guatemala is the most affordable country in Central America for travelers. It also happens to be my favorite thanks to the wide variety of amazing things to do here. From the Mayan ruins of Tikal to the charming villages of Lake Atitlan to the cobblestone streets of Antigua, there’s something for everyone here.
You can hike volcanoes one day and relax on the shores of a laidback lake the next. You can get off the beaten path a little and discover breathtaking natural wonders like Semuc Champey, or learn to surf in the Pacific Coast beach town of El Paredon. And you can do all of this without spending a ton of money.
In Guatemala, you can spend as little as $35 to $45 a day of food, lodging, and transportation.
2. Nicaragua
Another affordable country in Central America is Nicaragua. When it comes to costs, I would say that Nicaragua is about on par with Guatemala, making it another budget-friendly destination for travelers.
Highlights of Nicaragua include the gritty revolutionary city of Leon, volcano boarding on Cerro Negro, the colonial city of Granada, the volcanic island Ometepe, and Pacific Coast beach towns like San Juan del Sur.
A good budget for travelers in Nicaragua would be $35 to $45 a day.
3. Honduras
Next up on this list of the cheapest countries in Central America is Honduras. Honduras is known for destinations like the Bay Islands (Roatan and Utila) which are famous for their beaches and diving. You can also visit Mayan ruins in Copan or discover the rustic natural beauty of Pico Bonito National Park.
Although the Bay Islands can be pricier destinations, especially Roatan, traveling in mainland Honduras is quite cheap. It’s not as popular with travelers as other countries in Central America though.
You can expect daily expenditures of $40 to $45 a day in Honduras.
4. El Salvador
Another affordable country in Central America is El Salvador. It may be the smallest country in Central America but it has a lot to offer, from great beaches to impressive volcanoes to charming small towns.
Once the most dangerous country in Central America, it’s now among the safest, and tourism has been growing steadily in recent years. El Salvador is not the cheapest country in Central America, but it’s also not the most expensive. It is in the middle of the pack and still a budget-friendly destination.
You can plan for a daily budget of around $45 to $60 in El Salvador.
5. Panama
Panama can be a little more expensive for travelers, but a visit to this country still doesn’t have to break the bank. This is another diverse Central American destination that has something to offer for everyone.
From the tropical paradise of the San Blas Islands and Bocas del Toro to the lush highlands of Boquete, Panama is full of natural beauty. It’s also home to the best big city in Central America, Panama City.
In Panama, you should budget $50 to $75 a day to travel the country.
6. Belize
Belize is the only non-Spanish-speaking country in Central America. Since it was colonized by the British and not the Spanish, English is still the primary language spoken in this small Caribbean country.
Known for its beautiful beaches, abundant marine life, and aquatic attractions like the Great Blue Hole, Belize is an amazing destination for ocean lovers. It’s also home to some fascinating Mayan ruins.
It’s one of the more expensive countries in Central America at $60 to $90 a day.
7. Costa Rica
Finally, Costa Rica is by far the most expensive country in Central America. Costa Rica also receives the highest number of tourists and has the most developed tourism infrastructure in the region.
Prices in Costa Rica are on par with prices in many popular European destinations. In fact, I would say that Costa Rica is more expensive than any of the cheapest countries in Europe. However, it’s a beautiful country with some of the best nature, wildlife, and biodiversity in the world. It’s also very safe.
Some of Costa Rica’s highlights include its many national parks, beautiful beaches, waterfalls, wildlife spotting, and adventure activities. You should budget at least $65 to $100 a day to travel in Costa Rica.
What About Mexico?
Even though Mexico is not technically part of Central America, I wanted to talk about it anyway since it’s an extremely popular destination and located just north of Guatemala and Belize.
Mexico is almost four times larger than the rest of Central America, so it’s hard to rank it in comparison against the other Central American countries. There are big disparities in how much you might spend depending where you travel in Mexico since it’s such a large country, and also based on your travel style.
For example, if you stay at a luxury resort in a touristy beach destination like Los Cabos or Cancun, you can easily spend $500 a day or more. On the other hand, if you stay in hostels and backpack around states like Yucatan, Quintana Roo, and Chiapas, you can easily get by on a budget of under $50 a day.
Cheapest Countries in Central America
This guide showed you the cheapest countries in Central America.
Overall, this is a budget-friendly region of the world for travelers. Guatemala and Nicaragua are two of the best countries for budget travelers, while Costa Rica stands out as the most expensive.
It’s possible to travel cheaply in every country in Central America as a budget or mid-range traveler. For luxury travelers, you can splurge and still get a great value for your money in many places.
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