Not Everything is Cheaper in Cheap Destinations

burek and yogurt in Montenegro

Eat what the locals eat

Just because you’re traveling or living in a cheap destination doesn’t mean things will be cheaper across the board when you pull out your wallet. Some prices may be more expensive than you’re used to at home.

Does it surprise you to hear that many Mexicans crossing the border legally to come to the USA are simply on a shopping trip? That they are adding to our economy, not looking for a job? Even though salaries in Mexico are a fraction of ones in the USA. residents are coming to El Paso or San Antonio or San Diego to hit the shopping malls. A guy who works for Chihuahua Tourism told me that their capital city is flooded with TV ads for American shopping centers around the Christmas holidays because so many people make the trip then to stock up on gifts.

You will hear the same stories of people traveling across borders for better deals in Europe, South America, and Asia. Prices just aren’t consistent when it comes to physical goods, so sometimes the pickings will be better in expensive countries than in cheap ones. Sometimes the flow will even reverse based on exchange rates, like between Canada and Mexico or Poland and Slovakia.

Here are some general patterns to keep in mind though if you’re looking at moving abroad or doing a round-the-world journey .

Usually Cheaper in the World’s Cheapest Destinations:

Most of the time, prices for these goods and services will be cheaper than in a developed country such as the USA, Australia, Canada, or the UK.

Restaurant meals
Local alcohol
Locally grown produce
Services fulfilled by labor (babysitting, house cleaning, a haircut, massage)
Cheap hotels/hostels
Panama drink prices at a bar in the Casco Viego historic section of Panama City. One of the cheapest places to drink in the world.Locally made products
Handicrafts
Repairs of almost anything (back to that labor thing)
Taxes on purchases in non-VAT countries
Drugs (legal and not)
Public transportation by land
Live entertainment
Museum/attraction charges
Internet/local SIM cards

Usually More Expensive than in the USA

The reason stock markets freak out when there’s threat of a trade war between the USA and China is that we buy a lot of goods from China, usually with almost no tariffs. Plus despite the political messaging, we still manufacture a lot of goods stateside, in some very efficient factories. We also have cheap gas prices, which holds down distribution costs. Big box retailers squeeze every penny out of suppliers. So we get bargain prices on these things that other countries can’t match.

Electronics
Computers and smart phones
Clothing and toys from China
Many cosmetics from big multinationals
Tampons
Sunscreen
Imported food and alcohol
Name brand “luxury” goods (including Nike and Adidas)
Name brand travel gear/luggage/clothing/sunglasses
Cars
Foreign brand soda
Postage
Online shopping and shipping

You will pay a lot more for sunscreen

You won’t see these prices in Thailand, Mexico, or Morocco

Items influenced by a monopoly status vary a lot from place to place. Phone and land line internet charges are generally higher in Mexico, cheaper in more competitive markets not controlled by the world’s richest man. On the other hand, utility costs are usually subsidized or break-even, so unless you use an above-average amount of power or water, you won’t pay a lot.

Beer is expensive in some places because there’s one company and high taxes, in others there’s competition and lower sin taxes. Domestic flight prices depend on many factors, including competition and whether fuel subsidies exist.

In a country with lots of dark-skinned people, or where people cover up in the sun, only tourists are buying sunscreen. No company is going to set up a factory to make it locally. Where there’s no culture of drinking wine, naturally wine imports are going to be limited and expensive.

supermarket items Guatemala

What $7.50 gets you in a Guatemalan supermarket

So what does all this mean for you? “Buy local” is not just good for the environment. It’s a practice that will save you money almost everywhere. Eat what’s in season and what’s popular where you’re traveling.

Keep your electronic valuables safe with the right tools (and maybe some pickpocket proof pants) and don’t be posing for selfies in a crowd in rural India when what you’re holding is worth more than a year’s salary locally. You might as well paint a target on your forehead.

Make room in your pack for sunscreen, bug repellent, and your favorite name brand toiletries. Pack the lightweight travel clothes and convertible pants, but remember that you can buy t-shirts along the way for cheap. You can get things like razors, toothpaste, and shampoo for cheap almost anywhere, but maybe not deodorant or tampons.

Comments
  1. Dean Lacoursiere

    The prostitutes are definately cheaper abroad! And more eager as well….

    • not going to give my name

      you’re disgusting dean

  2. Keith Mundy

    Wine in Thailand is taxed at about 400% meaning that a bottle of utter plonk is $10 retail and at least $30 in a restaurant. And these days a small beer in any mid-level restaurant is at least $3. On the other hand, good blended Scotch is only about $20 a bottle. So the message is: rot your gut with liquor to drink cheaply.

    • Tim Leffel

      Yeah, it’s strange like that sometimes. In Mexico you can get imported Caribbean rum really cheap, but Scotch or Bourbon can cost double what they would at home. And Mexican wine has so many domestic taxes on it that what’s shipped all the way from Chile is half as much.

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