There are a few clusters of cheap destinations around the world where you can travel overland from country to country on a low budget for weeks, months, or a year. For Americans, starting in Mexico and going down to Panama is a pretty reliable way to travel well without spending a fortune—especially since the initial flight won’t set you back too much.

There are major variations of course, which is why Nicaragua is a screaming bargain, Mexico is an “honorable mention” in my book, and Costa Rica isn’t in there at all. Even that last one and Belize will cost you less than home if you pick the where and how carefully, however, so all in all it’s a good block for long-term travel.

A month ago I updated my old article for Transitions Abroad on Budget Travel in Mexico and Central America. It’s an article, not a book, so it’s just going to give you a quick overview. It does give you a quick overview for the region though on sleeping, transportation, and eating/drinking. Plus there are ample links at the end to resources to find out more.

I like Mexico so much I have two houses there. (Though I’d like to bring that down to one. Beach house for sale – $68,500.) It’s no bargain if you go to Los Cabos or the Riviera Maya, but in the interior and many off-the-radar beaches, it’s a whole different story. In Nicaragua, Honduras, and Guatemala, it’s a bargain throughout.

So do a little planning, but follow the article to decide if it sounds like a region where the price is right.

If you want to stand on the corner with a megaphone and say the world is coming to an end, 2012 might be the time to do it without looking quite so crazy.

A long time ago, the Maya astronomers devised a very accurate calendar that was superior to any other on the planet at that time. Chiseled into rock was a calendar that began in what we know as August 11, 3114 B.C. At the end of it was the date we know as December 21, 2012.

So many have interpreted that to mean the end of the world, as foreseen by this advanced civilization, is coming next year. “Hogwash” is the collective response from the Maya descendants and scholars who have studied the culture. It’s just simply the end of the long count calendar, the equivalent of December 31 on the one hanging on your wall. You toss out the old one and start over. It’s just that the Maya people sort of faded into the pueblos (and got killed off by smallpox from Europe) when their cities went into decline. No more astronomers keeping records, so no follow-up calendar.

Tourism bureaus know a good marketing hook when they see it though and this one is a gift from the gods. Some hotels around famous ruins are already sold out for the fateful time next December and all kinds of tourism companies are selling Maya Apocalypse tours. Where will you be when the world ends?

Hey, if it gets more people to visit some of these archaeological sites—especially the lesser-known ones—and prods people to learn more about what the Americas were like before Columbus landed, then I’m all for it. Besides, Honduras and Guatemala are both in The World’s Cheapest Destinations and Mexico is a bargain too, so visiting these places won’t set you back like going to Roman ruins or Stonehenge.

A great guide for the whole shebang is this new Maya 2012 book from Moon. It’s written by great guidebook author Joshua Berman and has lots of guest sidebars from other experts for specific places. A shade over 100 pages, it’s a nice little guide you can carry in a daypack without adding much weight and it’s short enough to read cover-to-cover as a trip planner to see what sounds the most interesting. As you’d expect, there’s plenty of background info on the calendar and the Maya people.

Broken down into sections on Mexico, Guatemala, Honduras, and Belize, it maps out where all the sites are and give some info on what you will find there. Sure, it’s got Tikal, Chichen Itza, and Copan, but also those with few visitors like Bonampak, Ek Balaam, and Xunantunich (say that one fast five times).

Here’s the best part: in the U.S. this book is $7.99 paperback, $2.99 as an e-book. A steal!

Get the Maya 2012 book at Amazon (including for Kindle), Barnes & Noble (including for Nook), or Amazon Canada.

Get more info at this Moon Maya 2012 page.

You won't believe your calculator if you figure this one out. But nice ribbons!

Currency exchange rates can make a huge difference in prices where you are going. Travel prices fluctuate a lot because of this and the exchange rate can take a country from a decent value to being way overpriced in the case of just a few years. It’s happened to Australia, Brazil, Canada, and South Africa most recently, and plenty of others before that. Here’s what to keep an eye on in the current roller coaster climate of global finance.

At least consider a package deal for a short trip

The only true way to protect yourself from currency fluctuations, really, is to buy some kind of package deal in advance that removes all variables. You pay one price for everything (or close to it) and you don’t have to worry much about rates on the ground once you get there. It’s one of the main reason some people like cruises: they know everything they’re going to get and roughly how much it’s going to cost them. No adventure, but no surprises either.

If I were advising a relative on a vacation to Europe anytime soon, I’d definitely tell them to get a package tour. Ironic and annoying as it may be, that bundling often makes it cheaper than being an independent traveler: the tour agency is negotiating lower group rates on flights, hotels, transportation, and meals. I can do better than them in a cheap country by being smart, but it’s tough to do better in an expensive one that requires a long flight, like Italy, Japan, or Australia. (For example, Budget Travel’s website recently listed a 7-day tour of Copenhagen and Stockholm for $1,187 from NYC per person: flights, fuel charges, hotels, breakfast, and taxes. Try working that out on your own.)

U.S. dollar vs. Swiss franc, past two years

Avoid Switzerland for now

Switzerland has never been a bargain, but suddenly it’s up there with Japan for the title of most expensive destination. That’s because the inability for the U.S. Congress to act like adults when managing their budget led to a downgrade of U.S. debt. (Despite what some think, all budgets have two sides to the ledger: spending AND revenue.) That left the Swiss franc as the only currency looking rock solid. Which means lots of countries and investors are buying Swiss francs by the bundle. In a big country, this wouldn’t matter, but for tiny Switzerland, it’s a disaster. It’s made the value of their currency rise by a third.

Check out this PlanetMoney podcast if you want the whole story, but the bottom line is an already expensive place just got crazy expensive. Ski elsewhere this winter.

Where have we been before?

It makes lots of sense to check historic exchange rates here. Thailand has been at 40 baht to the dollar and it’s been at 30. Your perception of what a screaming bargain this country is will be a whole lot different depending on what the rate was when you were there. When I first visited Canada many years ago, 70 U.S. cents bought one loonie. Now they’re at par, with the Canadian dollar slightly higher as I write this. Some things already seemed expensive at the lower rate—like cigarettes, music, books, restaurant meals, and beer. So imagine how it feels now. On the other hand, Mexico at 12 pesos to the dollar felt a whole lot better than the first time I went there, when it was 10 to the dollar. If the rate is good now, or if it’s going through some crazy up or down move that’s out of the norm, you’ll know what to do, based on how badly you want to go there right now.

Are they tied to the dollar?

As noted in this recent post on how you would think Africa would be a cheap travel destination, but it’s not, where the currency is pegged to matters a lot. If it tends to follow the euro, that’s different than if it follows the dollar. This matters in Africa, it matters in the Caribbean, and it matters in Asia: in all these places one country may be following the Euro, while one right next to it may be following the dollar or even the pound sterling.

Which brings us to Latin America. It used to be that all these countries moved in lockstep with the U.S., so the rates barely budged. That’s still true in some that use the dollar (Ecuador and Panama) and others that might as well, they track it so closely (like Honduras and Belize). There are a few outliers though, resource-rich countries with booming economies that are floating their own boat on the international exchanges, most notably Brazil and Chile. It’s been a good while since either of those were a bargain—though Chilean wine remains a fantastic value. And you should have lots of Brazilian music in your collection, of course.

Overall though, in a world of uncertainty, these are your best bets for stability for those making their money in U.S. dollars. These economies are strongly tied to the U.S. and their people are getting lots of remittances from relatives working there. Huge spikes or declines in the exchange rate don’t do anyone any good. So “steady as she goes” seems to be the mantra. You won’t get any big nasty surprises going to any of the Latin American countries profiled in The World’s Cheapest Destinations.

Here’s a chart on Argentina though, for comparison purposes. It’s not as dramatic as it seems if you look at the change in percentage terms, plus inflation there has eaten up much of the gain. And now the government is charging you $140 before you even leave the airport. Even factoring in all that though, it’ll certainly cost you far less than the country profiled in the other chart above. That’s really the key point: keep it all in perspective because the cheapest destinations will usually still be a better value than the most expensive ones, no matter what kind of European meltdown, Asian currency crisis, or political posturing in the U.S. is going on.

Dollar vs. Argentine peso, past two years

I’m preparing the next edition of Perceptive Travel to go live, so here’s some good reading from other publications. All feature one or more of The World’s Cheapest Destinations.

How to hire a boat in Indonesia: without drowning (Travelfish.org)

How to ride an overnight bus in Vietnam (Matador Network)

Great outdoor adventures in Malaysia (Lonely Planet)

Great town, few tourists: Santa Rosa de Copán, Honduras (GoNomad)

A to Z of insane information on India (Wanderlust and Lipstick)

What a $5 hotel looks like in India—sometimes (Mojotrotter)

Handbook for travelers to Pokhara, Nepal (Hole in the Donut)

Also:

Europe rail deals for summer 2011 (EuroCheapo)

How to travel more without quitting your job (BootsnAll)

Finding your first paid job overseas (Transitions Abroad)

In today’s World Cup match, the scrappy Central American long shot of Honduras vs. the country at the bottom of South America – Chile. Instead of lots of running around with little scoring to show for it, we’re going to pit the two teams against each other on the tourism field. Which will come out the victor for travelers on a budget?

Taking Chile’s side is Wayne Bernhardson, author of Moon Handbook Chile and editor of the Southern Cone Travel blog. Representing Honduras is Amy E. Robertson, co-author of Moon Handbook Honduras & the Bay Islands.

Where should I go on vacation, Chile or Honduras?

Wayne for Chile – Chile has a very unique topography and has been called a “geographic extravaganza.” In this string bean of a county you’ve got a mirror image of the whole west coast of North America. You get one of the driest deserts on the planet, with some fascinating ghost towns scattered around. The central part of Chile has California-style weather. Then Patagonia is like Alaska without the people, with no areas that are overpopulated. You get the whole temperature and topgraphy spectrum: ski and surf the same day in certain parts of the year.

Amy for Honduras – Honduras boasts Caribbean beaches and colorful coral reefs, intricately-carved Mayan ruins, sleepy colonial towns and extreme jungle adventures. It’s all compactly tucked into an area roughly the size of the state of Virginia, making it easy to squeeze a smorgasbord of relaxation and escapades into the number of days you have to spare. Plus you can get here from the U.S. in just a few hours.

What can I do there for free or cheap?

Chile - Well, this is not a cheap country, though by North American standards it is not expensive. Hotels knock off the value added tax (19%) for foreigners, so a hotel listed for $100 is more like $80. One of the best cheap activities is visiting Valparaiso, which is kind of like the San Francisco of Chile. You ride this funicular cable cars up to neighborhoods in the hills. You stroll around and have great views, but it costs almost nothing—like 30 cents. It suffered a bit in the earthquake, but not too badly. Likely be some good values in the upcoming season because traffic will be down post-earthquake. Most museums are inexpensive in the cities. There’s a new museum of memory and human rights a little west of downtown Santiago, by Quinta Normal park. In Santiago the subway is about a dollar, but it’s a flat fee to go as far as you want. Public transportation in general is relatively cheap.

Honduras - Hiking costs only as much as the entrance fee to whichever of the country´s 107 protected areas catches your interest (fees range from nothing to a few dollars). Lolling around on the powdery sands of the Bay Islands is free, as is admiring the angelfish, moray eels, hawksbill turtles and other sea life if you’ve brought your own snorkel equipment (renting gear will set you back US$5-$10/day). The mainland´s golden shores are equally appealing for a day relaxing under palm trees and swimming in the lapping waves.

Scuba diving in the Honduran Bay Islands is as cheap as it gets, with two-tank dives for US$35 and certification for as little as $250 (and practice dives are in the crystal waters of the Caribbean rather than some dank YMCA pool).

What can I get to eat for $6 or less at lunch?

Chile – Eat the “complete” – a giant hot dog slathered in mayonnaise, ketchup, and more. You get it at a stand for a couple bucks. When I was a backpacker I ate them all the time. Now I can’t even stand to look at them. (See Anthony Bourdain chowing on one here.) Barros luco sandwiches are a popular staple, made from beef and melted cheese for three or four dollars. Another features chicken and avocado, but ask them to hold the mayo or it’ll be drowned. There are mid-day specials at restaurants that are right around that $6 mark, maybe with fish if you go to the Mercado Central in the cities. Try to get your fish grilled, not fried.

Honduras – A typical Honduran meal is made up of refried beans, salty cheese, scrambled eggs and abundant corn tortillas, all for only $2-$3. If you’ve got $6 to spend, sautéed shrimp or fried fish with rice and fried plantains make for great meals.

These are two good adventure tourism countries. What/where are the best adventures that would be hard to duplicate elsewhere?

Chile – It’s hard for anyone to beat Chile for the variety of adventure activities. You can climb Andean mountains along the borders with Argentina and Bolivia, with some of the world’s highest peaks outside Asia. There are also volcanoes to climb, ski resorts to swish down, and plenty of spots for surfing without the crowds. The Futaleufu is one of the top whitewater rafting rivers in the world and some think it is the best. Plus there’s trekking in Torres de Paine and the rest of Patagonia. Plus don’t forget that Rapa Nui—Easter Island—is part of Chile. There’s nothing of its kind anywhere else in the world. On July 11 people there will see a full solar eclipse over the giant stone figures.

Honduras – Wandering the Mayan ruins of Copán in western Honduras, once called “the Athens of the ancient world” for its elaborate carvings. Building your own balsa raft and floating down the Plátano River to the fabled Mosquito Coast, spotting jaguars and tapirs along the way if you’re lucky. Spending the morning white water rafting the jungle-lined Cangrejal River near Honduras´s north coast, and the afternoon swimming in the Caribbean near the town of Sambo Creek (both activities about half an hour from the city of La Ceiba).

What are the best bets for finding cheap places to sleep?

Chile – Hostels are a good bet when you can find them, but hostels are not as widespread in Chile as they are in Argentina. A lot of them have comfortable private rooms for $30 or so, or you can get a bunk bed for $10-$15 a night. Lodging prices in Chile are fairly stable, so there are few big shocks after arrival. The B&B equivalents are $50 and up. Some of these are quite nice., with a lot of character. Business hotel prices are about the same as in the U.S. now.

Honduras – Just about any town or city has a decent place to sleep in the range of $5-$10/night per person. While the per-person price system of hostels works out great if you’re traveling alone, if you are traveling with others you may find a better deal at a hotel that charges by the room than at hostels that charge per person.My favorite cheap sleeps are the thatch-roof huts on Chachauate in the Cayos Cochinos ($8/night per person). Hosted by a small settlement of Garífunas (descendents of Carib Indians and African slaves), visitors wake up to the sound of the local kids playing soccer, spend the day snorkeling and swimming, and stuff themselves on shrimp and fried fish.

For those looking for a few more comforts, there are B&Bs scattered across the country that provide some of the best values for a night’s rest in Honduras. Casa de Café with its elegant rooms and lush gardens in Copán, the sleek and modern Casa Guacamaya in San Pedro Sula, and homey Linda Vista in Tegucigalpa all offer rooms in the range of $40-$60

***

Wayne Bernhardson first traveled to Chile in 1979, during the Pinochet dictatorship, wrote his M.A. thesis on llama and alpaca herding in the Norte Grande’s Parque Nacional Lauca, and has returned repeatedly ever since to broaden and deepen his knowledge and appreciation of the country. He has driven well over 100,000 km through every Chilean region and Pacific island possession, and has also visited Chile’s Antarctic bases in the South Shetland Islands and the Antarctic peninsula.Wayne earned his PhD in geography from the University of California, Berkeley, but abandoned academia for a perpetual Latin American road trip that many university faculty envy. He is the author of Moon Handbooks to Argentina, Buenos Aires, Chile, and Patagonia. Wayne has also written for the San Francisco Chronicle, the American Geographical Society’s Focus, Business Traveler, National Geographic Traveler, Latin Trade, Travel Holiday, and Voyageur. When not in South America (he owns an apartment in Buenos Aires), Wayne lives in Oakland, California.

Amy E. Robertson is the author of two Moon guides for Honduras. She is a Seattle native who has long been obsessed with travel. She studied in Boston and Madrid for her bachelor’s degree, and upon graduating took a job with an international consulting firm. This position led Amy to a life of globetrotting – she traveled to more than 50 countries in less than three years. She then returned to school, earning a master’s degree in development studies at the London School of Economics, where she also met her husband, who hails from Italy. They moved to Honduras in 2007. Her writing has been published in National Geographic Traveler, Budget Travel and Travel + Leisure, among others. Amy currently resides in Tegucigalpa with her husband and two young children, but spends three months a year divided between her family’s hometowns: Seattle, Rome, and Messina, Sicily.

For info on the real futbol thing, visit the World Cup Blog.