7 Cheap Travel Destinations in South America You’ll Love
Low cost, high impact destinations you’ll never forget.
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Let me be honest with you. I used to think that amazing travel required a fat wallet. Then I discovered South America. This continent is a goldmine for budget travelers. I’ve eaten incredible meals for $3, slept in beautiful hostels for $10, and taken buses through landscapes that would cost a fortune anywhere else.
If you’re looking for cheap travel destinations that don’t skimp on adventure, culture, or beauty, you’ve come to the right place. These 7 spots have given me some of my best memories – and my bank account actually thanked me.
Let me take you on a tour of the best cheap places to travel in South America.
Table of contents ⇅
1. Sucre, Bolivia – The White City
Sucre is Bolivia’s most beautiful city, and somehow it’s still overlooked by most tourists. The entire historic center is a UNESCO World Heritage site, with blindingly white colonial buildings, red-tiled roofs, and courtyards full of flowers. It’s also one of the cheap places to go on holiday where your money stretches unbelievably far.
What I love most: The pace. Sucre is calm, safe, and walkable. You can spend days just wandering, popping into museums, and sitting in sun-drenched plazas. And the food? A full lunch menu (soup, main, drink, dessert) costs around $3-4.
Best attractions:
- Casa de la Libertad – where Bolivia’s declaration of independence was signed.
- Convento de San Felipe Neri – climb to the roof for panoramic city views.
- Parque Cretácico – see real dinosaur footprints (yes, really) and huge concrete replicas.
- Mercado Central – eat a salteña (Bolivian empanada) for breakfast.
- Cal Orcko – a massive limestone wall with over 5,000 dinosaur tracks.
Where to stay:
- Budget hostel: Kultur Berlin – social, clean, and has a great courtyard. From $8/night.
- Mid-range hotel: Hotel Independencia – colonial charm, central location. From $30/night.
- Splurge (still cheap): Parador Santa María La Real – a converted mansion. From $60/night.
Best for: History lovers, slow travelers, digital nomads, and anyone who wants to experience authentic Bolivia without the altitude sickness of La Paz (Sucre is at 2,800m – manageable).
The dinosaur park is a 20-minute walk from the center, but the hill is steep. Take a taxi for $2. And don’t miss the chicha – a fermented corn drink that locals love. Try it at least once.
Pro Tip
Why it’s a cheap travel destination: Bolivia is one of the most affordable countries in South America. You can live well on $25-30 a day here, including accommodation, food, and activities.
2. Baños, Ecuador – Adventure in the Amazon Foothills
Baños is a small town nestled in the Andes, at the edge of the Amazon rainforest. It’s Ecuador’s adventure capital, but it’s also ridiculously affordable. You can go white-water rafting, zip-lining, bungee jumping, and waterfall hiking – all for a fraction of what you’d pay in Costa Rica or New Zealand.
What I love most: The “Pailón del Diablo” waterfall. You hike down a canyon, cross a swinging bridge, and then walk behind the waterfall. The spray hits your face, the roar fills your ears, and you feel completely alive. Entrance is $2.
Best attractions:
- Pailón del Diablo – the famous waterfall.
- La Casa del Árbol – the “swing at the end of the world” overlooking an active volcano.
- Ruta de las Cascadas – rent a bike ($5) and ride past dozens of waterfalls.
- Thermal baths – Baños is named after them. Soak in hot pools for $2.
- Bungee jumping – one of the cheapest in the world (around $15).
Where to stay:
- Budget hostel: Hostal Princesa María – clean, central, with hot showers. From $10/night.
- Mid-range: Hotel Sangay Spa – has its own thermal pool. From $35/night.
- Splurge: Luna Volcán – incredible views of the Tungurahua volcano. From $70/night.
Best for: Adventure travelers, budget adrenaline junkies, and anyone who wants to see jungles and volcanoes in one trip.
Why it’s a cheap travel destination: Activities are dirt cheap, street food is delicious and filling ($1.50 for a full meal), and hostels are plentiful.
3. Salento, Colombia – The Cocora Valley and Wax Palms
Salento is a small town in Colombia’s coffee region, and it’s pure magic. Colorful balconies, friendly locals, and the tallest palm trees in the world – wax palms that reach 60 meters into the sky. It’s also one of the most affordable south america destinations for nature lovers.
What I love most: The hike through the Cocora Valley. You walk through misty cloud forests, cross rickety bridges, and suddenly emerge into a valley dotted with those giant palms. It looks like a Dr. Seuss illustration. And it’s free to enter.
Best attractions:
- Cocora Valley – the iconic wax palm forest. Hire a guide or hike solo.
- Coffee farms – take a tour at El Ocaso or Don Eduardo’s. Learn how coffee is made, taste fresh brew. Tours cost $5-10.
- Salento town – climb the stairs to the Mirador for sunset views.
- Santa Rita Waterfall – a short hike from town with a swimming hole.
Where to stay:
- Budget: La Serrana Eco Farm – a beautiful hostel on a working farm. From $12/night.
- Mid-range: Hotel Salento Real – central, clean, with great breakfast. From $40/night.
- Splurge: Eco Hotel La Cabaña – cozy cabins with valley views. From $70/night.
Best for: Hikers, coffee lovers, and photographers. Also great for solo travelers – the hostel scene is very social.
The Cocora Valley hike is muddy. Wear proper shoes – I saw people in flip-flops crying. A pair of waterproof hiking boots is worth every penny. And bring a poncho – it rains without warning.
Pro Tip
Why it’s a cheap travel destination: Colombia’s coffee region is very affordable. Meals are $3-5, bus tickets are cheap, and the main attraction (the valley) is free.
4. Arequipa, Peru – The White City of Volcanic Stone
Arequipa is Peru’s second-largest city, but it’s often skipped by travelers rushing between Lima and Cusco. That’s a mistake. This city is stunning – built from white volcanic sillar stone, surrounded by three massive volcanoes, and packed with incredible food.
It’s also one of the cheap places to go on holiday where you can eat like a king for pocket change.
What I love most: The Santa Catalina Monastery. It’s a whole city within a city – brightly painted streets, fountains, and cloisters. You could spend hours getting lost inside. Entrance is about $12, but it’s worth every sole.
Best attractions:
- Santa Catalina Monastery – the highlight of Arequipa.
- Colca Canyon – one of the deepest canyons in the world, home to Andean condors. Take a 2-day tour ($40-60 including transport, guide, and basic lodging).
- Museo Santuarios Andinos – see “Juanita,” the frozen Inca mummy.
- Yanahuara viewpoint – classic postcard view of the city and volcanoes.
- Mercado San Camilo – eat rocoto relleno (stuffed spicy pepper) for $2.
Where to stay:
- Budget: Hostal El Patio – beautiful colonial building with a courtyard. From $10/night.
- Mid-range: La Hostería – charming, excellent breakfast. From $40/night.
- Splurge: Cirqa – luxury in a restored mansion. From $100/night (still cheap by US standards).
Best for: Foodies, history buffs, and anyone who wants a taste of Peru without the Cusco crowds.
Acclimate slowly. Arequipa is at 2,300 meters, but Colca Canyon tours go up to 4,900 meters. Buy coca leaves or coca tea. And pack a portable oxygen canister if you’re prone to altitude sickness.
Why it’s a cheap travel destination: Peru is very budget-friendly. Arequipa has excellent cheap eats, affordable hostels, and public buses that cost cents.
5. San Pedro de Atacama, Chile (with a Budget Hack)
I know what you’re thinking. “Chile is expensive!” And yes, San Pedro de Atacama can be pricey – if you stay on the Chilean side. But here’s the hack: base yourself in Uyuni, Bolivia, and take day trips across the border.
Or better yet, do the 3-day tour from Uyuni that ends in Atacama. You’ll see the same otherworldly landscapes for a fraction of the cost.
What I love most: The Valle de la Luna (Moon Valley) at sunset. The colors are insane – reds, purples, golds. And if you book a tour from the Bolivian side, you can pay $15 instead of $50.
Best attractions (budget version):
- From Uyuni: The 3-day tour to Atacama includes salt flats, colored lagoons, flamingos, and hot springs. Cost: around $120 including transport, basic accommodation, and food.
- From Atacama (if you’re already there): Valle de la Luna ($15), El Tatio Geysers (early morning, $25), Cejar Lagoon ($10).
- Stargazing – Atacama has the clearest skies. Free if you just look up, or join a $10 group tour.
Where to stay (budget options):
- In Uyuni: Piedra Blanca Hostel – basic but warm. From $8/night.
- In San Pedro (if you must): Hostal Sol Inti – cheap by Atacama standards. From $25/night.
Best for: Budget travelers who don’t mind roughing it a little. The 3-day tour is not luxurious, but the landscapes are world-class.
The tour from Uyuni includes a night in a salt hotel. It’s cold, so bring a thermal sleeping bag liner. And stock up on snacks in Uyuni – they’re much cheaper than in Atacama.
Small Tip
Why it’s a cheap travel destination (with the hack): Bolivia is one of the most affordable countries. By starting your Atacama adventure there, you save 50-70%.
6. Montevideo, Uruguay – Underrated and Affordable
Uruguay has a reputation for being expensive – but that’s mostly Punta del Este. Montevideo, the capital, is surprisingly affordable. It’s laid-back, safe, and full of character. You can eat fresh seafood, stroll along the rambla (coastal promenade), and explore charming old town streets without breaking the bank.
What I love most: The Mercado del Puerto. It’s a bustling market packed with parrillas (steak restaurants). You can get a huge grilled steak with chorizo, morcilla, and fries for $10-15 – a steal compared to Buenos Aires. And the atmosphere is electric.
Best attractions:
- Ciudad Vieja (Old Town) – colonial buildings, plazas, and street art.
- Rambla – a 22-kilometer coastal walkway. Perfect for sunset.
- Museo Torres García – works by Uruguay’s most famous artist.
- Feria de Tristán Narvaja – Sunday market with antiques, clothes, and food.
- Plaza Independencia – the heart of the city, with the underground tomb of national hero Artigas.
Where to stay:
- Budget: El Viajero Montevideo Hostel – social, central, clean. From $12/night.
- Mid-range: Hotel Palacio – beautiful art deco building. From $45/night.
- Splurge: Alma Histórica Boutique Hotel – charming and quiet. From $80/night.
Best for: Slow travelers, culture lovers, and anyone who wants a relaxed city break without crowds.
Montevideo is very walkable. Skip the taxis. Bring a reusable water bottle – tap water is safe and good. And don’t miss the chivito – Uruguay’s national sandwich (loaded with steak, ham, cheese, egg, and olives). It’s huge and costs around $8.
Don’t Miss Out
Why it’s a cheap travel destination: While Uruguay is pricier than Bolivia or Peru, Montevideo is much cheaper than Buenos Aires or Santiago. You can easily spend $40-50 per day comfortably.
7. Tayrona National Park, Colombia – Caribbean Paradise on a Budget
Tayrona is one of the most beautiful places I’ve ever been. Pristine beaches, jungle-covered mountains, and ancient ruins of the Tayrona civilization. And it’s still surprisingly affordable – especially if you camp.
What I love most: Cabo San Juan beach. You walk through the jungle for two hours, and suddenly you’re on a perfect crescent of white sand, backed by palm trees, with turquoise water. There’s a campsite right on the beach. Sleeping to the sound of waves? Priceless.
Best attractions:
- Cabo San Juan – the most famous beach. Camp or hammock for $10-15 per night.
- Pueblito ruins – a smaller version of the Lost City, free to explore.
- Playa Cristal – great snorkeling (bring your own mask).
- Santa Marta – the gateway city, with a lively market and good cheap eats.
- Minca – a nearby mountain town, perfect for a day trip (coffee farms, waterfalls).
Where to stay:
- Inside the park (budget): Rent a hammock at Cabo San Juan for $10/night. Bring a sleeping bag liner.
- Inside the park (mid-range): Rent a tent with bedding for $30/night.
- Outside the park (budget): Hostel in Santa Marta – $10-15/night. Take a bus to the park entrance ($3).
Best for: Nature lovers, backpackers, and anyone who wants to sleep on a Caribbean beach for almost nothing.
Tayrona closes for maintenance every year in February and sometimes October. Check before you go. Also, bring reef-safe sunscreen – they check at the entrance. And pack biodegradable soap for camping.
Pro Tip
Why it’s a cheap travel destination: Entrance to the park is about $20 (foreigners). Hammocks are $10. Food inside is more expensive, so bring your own snacks and water. Colombia is generally cheap, and Tayrona is a steal compared to Caribbean islands.
How to Save Even More on Your South America Trip
I’ve learned a few tricks over the years. Here’s how I stretch my budget even further.
- Take night buses. They save you a night of accommodation and get you to your next destination by morning. Bring a travel neck pillow and eye mask to actually rest.
- Eat at local markets. A set lunch (menú del día) costs $3-5 and includes soup, main, drink, and sometimes dessert. Avoid tourist restaurants near main squares.
- Stay in hostels even if you’re not a backpacker. Private rooms in hostels are often cheaper than hotels and give you access to a kitchen – cook your own meals.
- Use local transport. Buses and colectivos (shared taxis) are cheap and safe. Domestic flights are expensive.
- Travel in the shoulder season. April-May and September-October have good weather and lower prices. Avoid December-January (peak) and February (Carnival prices).
- Bring a portable charger. Long bus rides and day trips drain your phone. You’ll thank me.
Don’t Miss Out
South America has some of the best cheap travel destinations on the planet. You don’t need to be rich to see salt flats, rainforests, waterfalls, and ancient ruins. You just need to know where to go.
These 7 places have given me memories that no amount of money could buy. The sunrise over the Cocora Valley. The roar of Pailón del Diablo. The silence of the salt flats. And the best part? I spent less on a month in South America than I would on a week in Europe.
So pack your bags, book that bus ticket, and go explore. Your wallet – and your soul – will thank you.