Budget-Friendly Travel Tips for Central America with iBestTravel
If you’re a budget-conscious traveler looking to explore Central America, start by checking out these money-saving tips.
With seven countries, two endless coastlines, and countless attractions, Central America should be a top pick for travelers on a budget. Whether you’re embarking on a two-week vacation, an adventurous gap year, or an open-ended journey, you can stretch every dollar further.
There are always more ways to cut costs, from taking the bus to eating with the locals. The money saved on day-to-day expenses can then be utilized for splurging on once-in-a-lifetime experiences — perhaps snorkeling with stingrays in Belize, desert island hopping around Panama’s San Blas archipelago, or riding the waves in Costa Rica. You could even consider extending your trip.
Choose the Cheapest Central American Countries to Explore
While each of Central America’s beautiful countries offers unique attractions, some are undeniably more budget-friendly than others. The best-value destinations are Guatemala, Nicaragua, Honduras, and El Salvador; in each, by staying in a hostel, utilizing public transport, and indulging in street food, you can manage on around $30 a day. In contrast, you can expect to spend double that in Belize, Costa Rica, and Panama.
Avoid the High Season and the Highest Prices
Although subtropical Central America is a year-round destination, it’s at its most popular (and expensive) during the hot, dry season from December to April. Peak prices occur over Christmas, New Year’s, and Easter. Therefore, traveling during the hotter rainy season — approximately May to November — allows you to dodge the crowds and secure bargains on flights, accommodations, and organized tours.
Although September and October are the wettest months, with heavy rain posing challenges for travel on rural roads, the rains typically arrive in brief bursts, enabling you to plan around them.
Ditch Domestic Flights and Join the Locals on the Bus
Domestic flights throughout Central America can often cost more than your international ticket. However, getting around by bus is a viable solution. “Chicken buses” — repurposed North American school buses — represent the most cost-effective, albeit not the most comfortable, option for shorter distances. Long-distance bus companies such as Ticabus offer a more luxurious alternative at a fraction of the cost compared to flying; for example, an 18-hour bus journey from San José to Panama City is around $45 versus a $230 flight.
Carry the Local Currency
Cash remains king in Central America. Credit cards are generally necessary for booking flights and accommodations in advance and are accepted in more upscale establishments. However, using plastic can incur a surcharge of between 5 to 15%. The US dollar is widely accepted — being the official currency of El Salvador and Panama — but exchange rates can be unfavorable. Therefore, carry small bills and local currency, especially for markets and rural areas.
Bunk Up in a Dorm Room or Stay with a Family
In Central America, you can find accommodations that suit every budget, from a hostel bunk or private room to staying with a local family, often inclusive of home-cooked meals. If you’re in the mood to splurge, consider boutique hotels with a mission, such as Hotel con Corazón in Granada, Nicaragua, that reinvests profits into education.
Ditch Beds Altogether and Sleep in a Hammock
Hammocks can be found everywhere, especially along the coast. Many hostels offer hammocks as a cheaper alternative to beds, and in some national parks, you’ll find hammock shelters — including the famous Tikal in Guatemala — allowing you to sleep surrounded by the rhythm of the jungle. You might also consider packing your own compact hammock to string between two palm trees of your choice, simply don’t forget your bug repellent.
Eat on the Streets
Some of Central America’s best and most affordable meals are found on the streets. In Honduras, vegetarian-friendly baleadas (wheat-flour tortillas filled with beans and cheese) serve as hearty snacks; adding scrambled eggs transforms them into an all-day breakfast. El Salvador’s national dish, the pupusa, is a fried corn tortilla stuffed with cheese and loroco, a native edible flower.
In Nicaragua, local favorites include nacatamales (steamed corn dough parcels filled with meat and vegetables) and vigorón (chicharrones, boiled yucca, and cabbage salad wrapped in a banana leaf) that provide sustenance all day. Following locals to their preferred stalls is a reliable way to find clean and delicious food.
Don’t Drink Bottled Water — Filter It Instead
Except in urban Costa Rica, tap water in Central America is generally not safe for drinking. While purchasing bottled water is the common solution, you can minimize your environmental impact and save money by investing in a quality water-filter bottle before your trip. The LifeStraw Go enables you to fill it from any available water source, filtering out impurities as you drink.
Drink the Local Tipple
Thirsty travelers should opt for local lagers over imported beer brands. Each country has its own brews, including Belikin in Belize, Gallo in Guatemala, and Toña in Nicaragua. Additionally, Central America boasts a thriving craft beer scene with innovative flavors emerging from breweries in major towns.
For something stronger, consider award-winning rums from Ron Zacapa in Guatemala and Flor de Caña in Nicaragua, allowing you to enjoy a happy-hour Nica Libre for a fraction of the price you would pay back home. And, in this coffee-growing region, you are guaranteed top-notch caffeine to awaken your senses the following morning.
Swap the Supermarket for the Local Market
Every town has a market filled with fresh seasonal produce, including vibrant displays of tropical fruits like granadilla, pitaya, and guava, in addition to staples like rice and beans. Seek accommodations that offer kitchen facilities to prepare your own meals and picnics.
Since Tours Cost Money, Be Your Own Guide
While certain excursions necessitate a tour or local guide — such as volcano boarding down Nicaragua’s Cerro Negro or hiking through Costa Rica’s rugged Corcovado National Park — with some advance research, you can explore many sights independently. This includes marveling at the intricate carvings of the Copán ruins in Honduras.
Learn the Language in Less Touristy Towns
While various schools are available to learn or enhance your Spanish skills, you can save money by stepping slightly away from the tourist trail. For example, in Guatemala, a Spanish course in the highland city of Quetzaltenango (often referred to as Xela) is cheaper compared to Antigua. Expect to pay around $180 for 20 hours of one-on-one tuition including a homestay, allowing you to immerse yourself in local life.
Island Life is More Expensive, So Head for Mainland Beaches
Although Central America offers stunning islands featuring soft white sands and crystal-clear waters, island life typically carries a higher price tag, even before factoring in the added cost of getting there. Instead, consider the miles of beautiful beaches available along the Pacific and Caribbean coasts of the mainland. Alternatives such as Placencia in Belize, Playa Maderas in Nicaragua, and remote Santa Catalina in Panama provide breathtaking experiences without the premium price.
Take a Scuba-Diving Course in Honduras
Utila, the smallest of Honduras’ Bay Islands, is renowned as one of the most affordable places globally to receive scuba training, catering to both beginners and experienced divers. The average cost for a PADI Open Water course is approximately $300. Furthermore, if you visit between March and May, you might have the unique opportunity to dive with majestic whale sharks, the gentle giants of the ocean.
Daily Costs in Central America
- Hostel dorm: $7–20
- Basic room for two: $15-50
- Bus ticket: $0.25-10
- Dinner for two in a local restaurant: $6-20
- Beer: $0.85-3.50
- Coffee: $0.75-5
This article was first published on March 31, 2022, and updated on June 28, 2022.
