Where is the Travel Dollar NOT in Trouble?

7/15/2007 5 comments

Throughout the Bush presidency, we U.S. travelers have watched our dollars become less and less valuable on the world stage. That hasn’t seemed to hurt our growing number of billionaires, but it does make it tough for the rest of us who want to go travel around the world.

I get interviewed about this subject a lot by journalists and my stock answers used to be “go to Asia” and “go to Latin America.” It’s not that simple anymore though. Currencies are floating more freely, nations are acting more independently, and the world of global finance is becoming more complicated. As I mentioned in an earlier post, the dollar is down over 10 percent this year alone against the currencies of Thailand and India, two of the prime World’s Cheapest Destinations. Besides the euro zone, the dollar is also sucking wind badly in Brazil, Australia, New Zealand, Colombia, and Turkey.

So where are the safe havens? Your travel dollar is worth roughly what it was at the end of 2006 or is doing slightly better in the following. The first two use the dollar as their currency, so it never changes.
Panama
Eduador
Mexico
Belize
Costa Rica
Argentina
Chile
Peru
Uruguay
Venezuela
Bolivia
China
Hong Kong
Indonesia
Japan
Malaysia
Singapore
Cambodia
South Korea
Taiwan
Czech Republic
Sweden
Switzerland
Egypt
Israel
Jordan
South Africa

This isn’t comprehensive of course, but follow this link to see historic exchange rates for any currency.

“Go to Asia” still partly applies, especially if you do your homework. (And remember that just because a currency change make the rate more favorable, that doesn’t mean the place is a bargain–as in super-expensive Japan.) Going to Latin America still makes the most sense and you’re not liable to get sticker shock anywhere.

For ways to save beyond just the destination, see Make Your Travel Dollars Worth a Fortune.

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Written by Scott on 7/15/2007. Reply

Are these in any particular order, i.e., cheapest to most expensive? I’m assuming they are cheapest to most expensive (most expensive being a relative term)…
Written by tim on 7/16/2007. Reply

No, they’re just in the order as printed in newspaper financial sections, roughly arranged by continent.
Written by Rob Meyer on 7/17/2007. Reply

Great list Tim! I think a lot of travelers are under the misconception that international travel has to be expensive, and even more so with the weakening of the dollar. But it just isn’t true!

In Ecuador for example (one of the countries on your list) $5 still gets you a decent meal, a taxi ride across town, and a beer in a nice bar!
Written by phil on 9/30/2007. Reply

rob are you saying 5 dollars buys you all three things combined.
Written by Edwin on 11/22/2007. Reply

I go to Brazil a lot. Even though the Dollar has been declining against the Brazilian Real, There are still many ways to stay there cheaply. The main thing is to stay away from tourist spots and seek out where the locals eat and do things. Thanks for the list.

Where is the Travel Dollar NOT in Trouble?

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