Archive for the 'Cheapest Countries' Category

The Problem with the Cost of Living Index

February 17th, 2010 by budgetmonkeydave

It’s pretty hard to find good data on travel costs for far-flung destinations around the globe, so I was excited to take a look at Mercer’s Cost of Living Survey. Mercer is a global consultancy, and the cost of living survey provides information to corporations, governmental organizations, and NGOs to help them determine cost of living allowances for employees stationed worldwide.

One cool thing about the Mercer cost of living survey is that it is city-based, so it avoids the problem of cost differences within countries (which are often even greater than cost differences between countries). Let’s take a look at some of the highlights from the 2009 edition of the Mercer cost of living index.

Most expensive cities:

  1. Tokyo, Japan
  2. Osaka, Japan
  3. Moscow, Russia
  4. Geneva, Switzerland
  5. Hong Kong
  6. Zurich, Switzerland
  7. Copenhagen, Denmark
  8. New York City, US
  9. Beijing, China
  10. Singapore

Least expensive cities (of the 143 selected cities):

  1. Johannesberg, South Africa
  2. Monterrey, Mexico
  3. Asuncion, Paraguay
  4. Karachi, Pakistan
  5. Wellington, New Zealand
  6. Auckland, New Zealand
  7. Mexico City, Mexico
  8. Quito, Equador
  9. Chennai(Madras), India
  10. Tunis, Tunisia
  11. Bangalore, India
  12. San Jose, Costa Rica
  13. Montevideo, Uruguay
  14. Adelaide, Australia
  15. Glasgow, UK
  16. Santiago, Chile
  17. Winston Salem, US
  18. Manila, Philippines

Now, if some of these results look a little odd to you, you’re not alone. Auckland cheaper than Chennai? Beijing more expensive than Adelaide? Sounds like Australia and New Zealand are the new budget travel paradises!

wellington

Delving deeper into the rankings, some even stranger findings emerge. Ho Chi Minh City(Saigon), Vietnam is ranked 69th most expensive, whereas Seattle is ranked 84th. Sorry, but it doesn’t take an olfactory savant to smell something fishy going on here. Seattle is an expensive city even by US standards. And although Saigon must be getting more expensive every year as the Vietnamese economy enjoys its own China-syle mini-miracle, it’s hard to believe that costs there are anywhere near Western levels yet.

I suspect that that what’s at the bottom of these enormous discrepancies is a focus on western and luxury items. This makes sense given the the purpose of the index is to help calculate the expenses of highly paid, largely western personnel.

Take a look at some of the goods in the price index basket:

  • Spaghetti, 1000g. Paris $1.95, New York $2.74, Beijing $3.65
  • Luxury 2bd Apartment. Paris $1952. New York $2977. Beijing $2532.

Now, if you’re living on a budget in Beijing, you learn quickly that if you eat Chinese noodles instead of Italian pasta, you cut your food bill by about 90%. You can also find a cheap apartment in Beijing for a fraction of the price of cheap, rat-infested New York dive. So while these numbers may be relevant to the wealthy expat, or even luxury tourist, they bear little resemblance to the type of deals available to the creative and flexible budget traveler.

I guess the search for the holy grail of the perfect cost index must continue!

Cheapest Countries in Western Europe for Travel

June 10th, 2008 by budgetmonkeydave

The days of backpacking all over Western Europe at bargain rates are over. In fact, Western Europe is arguably the most expensive region on the world travel circuit. But some of the 22 countries in this survey are much cheaper than others. It turns out there are bargains to be had after all; you just have to get (way) off the beaten path.

This post follows up in the Cheapest Country series, which has so far included Cheapest Countries in Latin America and Cheapest Countries in Asia.

Cheapest Countries in Western Europe for Travel

Here’s a wrap-up of the winners and why you should go:

Andorra: The Cheapest Country in Western Europe?

andorra church picture

A tiny country wedged between France and Spain, Andorra offers great mountain panoramas and even better skiing. Better brush up on your Catalan.

#2. Portugal

Portugal Promenade Picture

Attractive beaches, beautiful country vistas, a rich architecture and history. Sound good? Relatively modest prices are the icing on the cake.

#3. Finland

Finland Winter Picture

Arguably more a part of Northern than Western Europe, Finland offers oodles of coastline, expansive and untouched wilderness areas for trekking, and a fine city brimming with culture: Helsinki.

Cheapest Countries in Asia

May 23rd, 2008 by budgetmonkeydave

What’s the cheapest country in Asia? This post compares the bare minimum travel costs of 17 Asian nations. Daily travel costs range from under $4 to over $30. Here’s a hint: the two cheapest countries both start with the letter “I”.

Continue reading ‘Cheapest Countries in Asia’

Latin America’s Cheapest Countries for Travel

February 5th, 2008 by budgetmonkeydave

Some travel destinations offer much better bang-for-the buck than others. Have you ever wondered which countries offer the best travel bargains?

Here is a wrap up of baseline daily travel budgets for 16 Latin American nations.

Continue reading ‘Latin America’s Cheapest Countries for Travel’