Cheapest Countries in Central America
Which are some of the cheapest countries in Central America to visit?
This region is full of incredible adventures. From hiking fiery volcanoes to lounging on postcard-perfect Caribbean beaches, this small region has lots more going for it than you’d think.
It’s also a great choice as it won’t break the bank like other parts of the world will, so your money will go on for longer here.
In this comprehensive guide we’ll take a look at the overall cheapest countries you can visit in Central America.
This will include our own recommendations based on our time traveling and living here, as well as listing some everyday costs such as for food, accommodation and tours.
Cheapest Countries in Central America to visit
Quick Answer: Overall, the cheapest country in Central America is Guatemala. Here you can easily live on $15-20 a day (or less depending on your daily needs). Transport and tour prices are very cheap too, especially if you focus on the more local options.
Is Central America worth visiting?
100% yes! Despite its smaller size this region really packs a punch, and many travelers often end up spending more time here than originally planned.
Central America is best known for its mix of beautiful landscapes. Those who love diving can explore The Mesoamerican Reef, which is the second largest on Earth.
Those who prefer to stay ashore can also find remote palm-fringed beaches down both the Pacific and Caribbean coasts of Central America.
Those who love adventures will also be in for a real treat too. In countries like Guatemala and El Salvador we can hike impressive volcanoes and mountains, whilst those who want to get off the beaten path can head deep into the colorful jungles of Panama and Honduras.
What is the most expensive country in Central America and why?
The most expensive country you can currently visit in South America is Costa Rica (which is then followed by Panama and Belize).
One of the most popular countries to visit in Latin America, Costa Rica’s immense reputation for safety has led to a recent explosion of incoming tourists. This in turn has led to increasing prices (which even affects smaller, everyday things like meals and drinks).
Those who travel on lower budgets can still make Costa Rica work, however you’ll need to put in the extra effort.
For example, you’ll want to also use Hostelworld and apps like Booking and AirBnb to look for accommodation, and also to browse for the best ‘non-touristy tours’ you can find (given that the first ones you will see often ask for a lot – because they know they can!).
Can you travel Central America cheaply?
Where there’s a will there’s always a way, and this is also the case with keeping costs low in Central America. Travelers looking to keep things cheap will want to focus more of their time in countries such as Honduras, Guatemala and Nicaragua.
One of the best ways to do so is by using public transport to get around, and also between different destinations (the tourist shuttles are super expensive in comparison).
Whilst you may worry about the safety aspect, it’s actually fine as long as you take a couple of precautions such as using padlocks and keeping bags on you at all times.
Staying in hostels is pretty cheap in Central America, and there’s a tonne of solid options here which is perfect for those traveling Central America on a lower budget.
Eating locally is another great method of keeping costs low, and we even found National foods like Baleadas in Honduras (a favorite for George) both extremely cheap and filling. Just keep in mind the extra risks with getting sick, and try to take precautions where possible.
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Cheapest Countries in Central America
Let’s dive into this list of cheap Central American countries to visit.
Guatemala
Ranking in as the overall cheapest country to visit in Central America, Guatemala is a really memorable country. You can make a solid all-round trip just visiting this nation, which really does have everything going for it.
One of the best things about Guatemala is its diversity of landscapes. From lounging on its black sand Pacific beaches to hiking volcanoes at sunrise, you’ll be busy here for sure!
And speaking of volcanoes, we highly recommend travelers to join this overnight expedition to Acatenango Volcano. With all equipment, food and tents provided, you’ll wake up to a truly memorable sunrise here.
You can budget for $15-20 a day in Guatemala, which includes a dorm bed, a few filling meals as well as some leftovers for beers or an activity.
- 💰 Currency: Quetzal (GTQ)
- 🛏️ Cost of dorm: $4-8
- 🍴Cost of meal: $1-3
- 🍺 Cost of beer: $1-2
- 🚠 Cost of average tour $10-25
Nicaragua
Second on our list we have Nicaragua, which is another staple on any Central America Backpacking Itinerary.
Geographically similar to Guatemala, this country really impresses with its diverse cities and rustic adventures, as well as having a really interesting history too.
Popular things to do in Nicaragua include going Sandboarding (be sure to stay and book with BigFoot in advance!) as well as chilling out in the backpacking surf hub of San Juan del Sur.
Another really memorable experience is this Full-Day Tour to the Mombacho Reserve, where you’ll hike through both thick jungle and across volcanoes. As well as including transport and entrance fees, you’ll go zip-lining above the forested canopy.
You can budget for $20 a day in Nicaragua, which includes a dorm bed, a few filling meals as well as some leftovers for beers or an activity.
- 💰 Currency: Córdoba (NIO)
- 🛏️ Cost of dorm: $6-10
- 🍴Cost of meal: $1-3
- 🍺 Cost of beer: $1-2
- 🚠 Cost of average tour $10-20
Honduras
Honduras, in our opinion, is the true wildcard of Central America. Although the safety situation isn’t great, with some pre-planning you can have some real novel adventures in this underrated nation without breaking the bank.
The Bay Islands continue to be the biggest hit with travelers, where you can enjoy the beaches on both islands whilst also diving in Roatán and even diving in Utila if you want to.
Those up for a memorable snorkeling adventure can head on this day tour from Roatán, where you can see everything from Sea Turtles and Nurse Sharks to a variety of multicolored fish.
Copán is another memorable town, which is home to the ancient Mayan city of the same name. Here you can also visit the Macaw Mountain to see a variety of exotic birds.
You can budget for $20-25 a day in Honduras, which includes a dorm bed, a few filling meals as well as some leftovers for beers or an activity.
- 💰 Currency: Lempira (HNL)
- 🛏️ Cost of dorm: $6-12
- 🍴Cost of meal: $1-3
- 🍺 Cost of beer: $1-3
- 🚠 Cost of average tour $10-30
El Salvador
Next up on our list we have El Salvador, which has recently had one of the most impressive and radical transformations of any Latin American country.
Once known for violence and domestic wars, since early 2023 it has had a major face-lift and is now arguably the safest country in the entire region.
Given its small size, it’s easy to see lots of awesome things in a time-efficient manner here. El Tunco is a great spot for surfers, and those after a warm Pacific beach.
However Santa Ana remains the best backpacking hotspot here, where you can hike up to the green lagoon of Santa Ana Volcano as well as bathe in the hot waterfalls of Malacatiupán.
El Salvador also has its own collection of mysterious Mayan Ruins, and on this day tour you can see some of the best which include those of Tazumal, Joya de Cerén and San Andrés.
You can budget for $20-25 a day in El Salvador, which includes a dorm bed, a few filling meals as well as some leftovers for beers or an activity.
- 💰 Currency: Bitcoin (XBT), US Dollar (USD)
- 🛏️ Cost of dorm: $6-12
- 🍴Cost of meal: $1-3
- 🍺 Cost of beer: $1-3
- 🚠 Cost of average tour $15-25
Panama
Finally we have Panama, which sees quite a jump-up in prices (and is closer to the more expensive rather than cheapest). It’s becoming a more popular alternative to Costa Rica, given it offers many similar experiences but at an overall cheaper price (as well as feeling more authentic).
Panama is a really diverse country, where we can find a whole range of biomes and experiences. First we have the mountainous jungle region of Boquete, which is perfect for those who love coffee and long adventure hikes.
Panama City is a gem in and of itself too, where you can visit both the charming center of Casco Viejo whilst contrasting with the high skyscraper bars in Calidonia.
We can also head on this multi-day tour of the San Blas Islands, which continually rank as some of the most beautiful on earth. You can even choose to head onwards from the islands to Cartagena in Colombia too.
You can budget for $30 a day in Panama, which includes a dorm bed, a few filling meals as well as some leftovers for beers or an activity.
- 💰 Currency: Balboa (PAB)
- 🛏️ Cost of dorm: $7-14
- 🍴Cost of meal: $2-4
- 🍺 Cost of beer: $2-4
- 🚠 Cost of average tour $15-30
Cheapest Countries in Central America
Central America is full of adventures and experiences, and overall is a memorable region to explore.
Here you can visit everything from giant Mayan temples to picturesque Caribbean islands, and there’s also many off-the-beaten-path experiences to have too despite its popularity.
Travelers on a budget can also keep things cheap here, as long as they focus more time in certain countries as well as put in the extra effort.
In this guide we’ve explored 5 of the cheapest countries you can visit in Central America, including why you should visit each.
We’ve also outlined some general costs for each to give you a better idea of how to plan your own budget. Read our Backpacking Central America guide for even more tips.
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