11 Best Countries For Budget Backpacker

This world is vast, but there are handful of countries that budget-travelers love to explore. In this guide, we look at the 11 best countries for backpacker on a budget.

11 Best Countries For Budget Backpacker

As a budget-conscious traveler, I’ve traveled to most of the cheapest countries, that are popular destinations for backpackers. From tropical beaches to ancient cities, these countries offer adventure and culture while keeping costs low. Let’s take a look at the best countries for backpackers on a budget to explore.

Nicaragua: Backpacker’s Haven in Central America

bright colorful skies of pink and purple at sunset on the beach with waves washing on to the shore in Nicaragua.
Sunset at on the beach in Nicaragua

Nicaragua is an underrated destination for backpackers. This affordable country offers a diverse range of experiences, from historic towns to volcanic islands and lush forests. Whether you’re hiking a volcano or wandering through colonial streets, Nicaragua delivers both adventure and savings.

  • Granada is the perfect starting point, with its colorful streets and historic architecture. This charming city is filled with affordable hostels, and its proximity to Lake Nicaragua makes it easy to explore the surrounding natural beauty.
  • For a more beach-centered experience, head to San Juan del Sur. This laid-back coastal town is known for its surf, vibrant backpacker scene, and cheap accommodations, making it the ideal spot for budget-conscious travelers.
  • Ometepe Island, formed by two volcanoes in the middle of Lake Nicaragua, is another popular stop. Affordable hiking trails lead you through stunning scenery, while local guesthouses provide budget-friendly lodging.

Nicaragua offers a mix of nature, culture, and adventure, all at an affordable price, making it a perfect destination for those traveling on a tight budget.

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Thailand: Beautiful Beaches, Perfect Vibes

Nighttime with lights lighting up a beautiful temple that has 4 surrounding structures next to a river running through the city of Bangkok
Wat Arun Buddhist Temple In Bangkok

Thailand remains a top destination for backpackers, offering a wealth of experiences at incredibly low costs. From bustling cities to quiet beaches, you’ll find plenty of ways to enjoy your time without spending too much. Thailand is known for its friendly locals, inexpensive food, and a wide range of activities that cater to every type of traveler.

  • The capital city of Bangkok is a sensory overload, with its lively streets, affordable shopping, and iconic landmarks like the Grand Palace and Wat Pho. The city’s famous street food markets offer some of the best cheap eats in Southeast Asia.
  • For those looking to relax on the beach, Koh Tao is a popular island in the Gulf of Thailand (Southern Thailand), popular with backpackers due to it's diving. Places like Bans Dive Resort, train and get divers certified for much less than the cost of western nations, and has amazing dive sites.
  • The infamous Full Moon Party, world-renowned for its monthly beach party, is held each full moon on the island of Ko Pha Ngan. Backpackers from around the world descend on the island in the days leading up to the party. The blockbuster hit movie The Beach, starring Leonardo DiCaprio, has made the party even more popular.
  • ARK Bar Beach Resort in Koh Samui, is very popular amongst backpackers for their beach and pool parties that go all day and night. Being the only island in Thailand's gulf with an airport, it's teaming with those coming and going from the surrounding islands islands like Koh Tao, and Ko Pha Ngan.
  • If you’re interested in culture and nature, Chiang Mai in northern Thailand offers a quieter experience, with affordable guesthouses, night markets, and access to nearby mountains for hiking.

With its incredible value and variety of things to see, Thailand is a must-visit for anyone looking for a budget-friendly travel experience in Southeast Asia.

Laos: Serene Getaway for Budget Travelers

Clear waters with a beautiful arched monument surrounded by palm trees in Laos called Patuxai or Victory Gate
Patuxai (Lao: ປະຕູໄຊ, pronounced [pā.tùː sáj] ; literallyVictory Gate or Gate of Triumph

Laos, known for its peaceful atmosphere and affordable travel options, is a great choice for those seeking an authentic experience without the crowds. From ancient temples to stunning waterfalls, Laos is rich in natural beauty and cultural sites that won’t strain your budget.

  • The historic town of Luang Prabang is a UNESCO World Heritage site that offers stunning temples, markets, and scenic river views. It's an affordable place to stay, with cheap guesthouses and local eateries serving delicious food.
  • The Kuang Si Waterfalls, just outside Luang Prabang, are a must-see. The entrance fee is minimal, and the multi-tiered falls provide beautiful photo opportunities and swimming spots.
  • Vang Vieng, with its stunning karst mountains and rivers, offers a more adventurous side of Laos. Here, budget travelers can enjoy kayaking, hiking, and exploring caves, all at affordable rates.

Laos is the perfect blend of nature and culture, offering a relaxing atmosphere for those traveling on a shoestring budget.

Philippines: Island-Hopping Paradise

Palawan is a backpackers dream with crystal clear waters, and boats docking in a bay surrounded by mountains.
Palawan, Philippines

With its thousands of islands, the Philippines offers endless adventure at a fraction of the cost compared to other tropical destinations. It's been a popular country for backpackers for decades due to it's incredible food, and extremely low prices on everything. Whether you're looking to explore coral reefs, hike through jungles, or just relax on a white-sand beach, the Philippines is a great destination for budget travelers.

  • Palawan is a top spot for backpackers, known for its clear waters, limestone cliffs, and affordable island-hopping tours. El Nido and Coron are both must-visit destinations, offering access to some of the country’s most beautiful beaches.
  • Cebu is another island worth exploring. Here you can swim with whale sharks, dive in crystal-clear waters, or visit Kawasan Falls, all while sticking to a budget.
  • Bohol offers unique experiences like visiting the Chocolate Hills and seeing the tiny tarsier monkeys. It’s an affordable island with plenty of cheap accommodation and dining options.

The Philippines is perfect for travelers looking to experience an island paradise without the hefty price tag.

Indonesia: Budget-Friendly Archipelago

big green leafy plants with a single stem and a pink bloom on top with a walkway leading to a very old ruin that is beautiful in Ubud, Indonesia
Pura Taman Saraswati Temple in Ubud, Bali

Indonesia, with its more than 17,000 islands, provides countless opportunities for exploration. While Bali often steals the spotlight, the country offers much more to budget travelers willing to venture off the beaten path. Bali, a mountainous paradise, and although it may seem small, it's vast and spread across long distances. Bali is a budget-friendly paradise for backpackers, and with Indonesia's vast spread of islands, there are endless destinations to explore throughout the country.

  • Bali is a favorite among backpackers, but there are plenty of affordable places to stay outside the main tourist areas. Ubud is great for culture lovers, with its temples and rice terraces, while Canggu attracts surfers and those looking for a laid-back vibe.
  • For a more rugged adventure, head to Yogyakarta on the island of Java, where you can explore the Borobudur Temple and the volcanic landscape of Mount Merapi. Both are affordable day trips from the city.
  • The Gili Islands, off the coast of Lombok, are another budget-friendly alternative to Bali’s crowded beaches. These islands are known for their relaxed atmosphere, diving spots, and affordable accommodation.

Indonesia offers budget-conscious travelers the chance to explore tropical beaches, towering volcanoes, and rich cultural sites, all without breaking the bank. Check out our 14 day Bali Travel Itinerary

Guatemala: Central American Treasure

Mayan city at Tikal National Park Mayan Ruins that is a steep pyramid surrounded by trees and bright green grass.
Tikal National Park

Guatemala is one of the most affordable countries to visit in Central America, offering a range of experiences from exploring ancient Mayan ruins to hiking through misty highlands. It’s a place where adventure and culture come together, all while staying within a tight budget.

  • Antigua, a colonial city surrounded by volcanoes, is a great place to start. With its charming streets and budget-friendly accommodations, you can explore the city’s markets and nearby hikes without spending too much.
  • The ancient ruins of Tikal are a must-see, offering an affordable way to immerse yourself in Mayan history. The nearby town of Flores provides cheap accommodation and easy access to the site.
  • Lake Atitlan, surrounded by volcanoes and traditional Mayan villages, is another beautiful destination for backpackers. It’s a peaceful place to relax, hike, or visit local markets, all at affordable prices.

For those looking to explore Central America on a budget, Guatemala delivers with its mix of natural beauty, history, and affordability.

Bolivia: Explore The Wonders of the Andes

Salt flats with lines that have been caused by puddle of rain with the Andes mountains in the background in Bolivia
Salar de Uyuni Salt Flats In Bolivia

Bolivia is an often-overlooked gem in South America, but it offers incredible value for budget travelers seeking adventure. The country’s landscapes are truly breathtaking, and the costs of transportation, food, and accommodation are among the lowest on the continent. From otherworldly salt flats to vibrant local markets, Bolivia has a unique charm for backpackers on a tight budget.

  • Uyuni Salt Flats (Salar de Uyuni) are a must-visit destination in Bolivia. The expansive salt flats offer surreal landscapes that make for incredible photos. Multi-day tours are budget-friendly, with most including accommodation and meals.
  • La Paz, the highest capital city in the world, offers vibrant street markets, affordable food, and access to incredible hiking and biking experiences. Don’t miss the Death Road biking adventure, a thrilling and budget-friendly activity.

Whether you’re hiking in the Andes or exploring ancient ruins like Tiwanaku, Bolivia offers adventure and affordability for those willing to explore its rugged terrain.

Vietnam: A Backpacker's Dream

Bridge with a giant hand sculpture appearing to hold it up in Vietnam surrounded by lush mountains
Golden Bridge In Vietnam

Vietnam offers some of the best value for money in Southeast Asia, with its stunning scenery, rich history, and incredible food all at an affordable price. Whether you’re wandering the streets of Hanoi or cruising through the Mekong Delta, Vietnam provides a wealth of experiences for budget travelers.

  • Hanoi, the bustling capital, is a great starting point. The city offers cheap eats like pho and banh mi, affordable hostels, and easy access to historic sites like the Old Quarter and Ho Chi Minh Mausoleum.
  • The UNESCO-listed Ha Long Bay is one of the highlights of Vietnam. Budget-friendly cruises offer stunning views of limestone karsts and emerald waters, providing an unforgettable experience without breaking the bank.
  • In the north, Sapa is ideal for trekking through lush rice terraces and meeting indigenous communities, while Hoi An in the central region offers a blend of ancient architecture and cheap tailoring services.

Vietnam offers a perfect mix of culture, history, and outdoor activities, all while being incredibly affordable for backpackers.

Turkey: Bridging Ancient Beauty

Sunny day in the ancient city of Harran Turkey where the remains of Beehive looking homes are on display.
3000 Year Old Beehive Homes In Harran, Turkey

Turkey is where the East meets the West, and it's a fantastic destination for budget travelers. From exploring ancient ruins to savoring local cuisine, Turkey offers a wealth of affordable experiences across both its European and Asian sides.

  • Istanbul, Turkey’s largest city, is a blend of ancient history and modern energy. Visit iconic landmarks like the Hagia Sophia, the Blue Mosque, and the Grand Bazaar without spending much. Affordable accommodations and street food, such as kebabs and baklava, make the city accessible for budget travelers.
  • Cappadocia offers one of the most unique landscapes in the world, known for its fairy chimneys and cave dwellings. While hot air balloon rides may be on the pricier side, hiking the area’s trails and staying in a cave hotel can be done on a budget.
  • Don’t miss the Aegean coast, where you can explore ancient ruins such as Ephesus and relax on beautiful beaches for minimal cost.

Turkey’s rich history, scenic landscapes, and delicious cuisine make it a great option for those traveling on a shoestring budget.

China: Unraveling the Mysteries of the Middle Kingdom

River running through the lush bright green valleys of the mountainous Zhangjiajie National Forest Park in China.
Zhangjiajie National Forest Park

China is a land of ancient wonders and modern marvels, and it can be surprisingly affordable for backpackers. With its vast size and incredible diversity, China offers everything from bustling metropolises to remote villages at a fraction of the cost of more tourist-heavy countries.

  • Beijing, the capital city, is home to iconic landmarks like the Great Wall, the Forbidden City, and the Temple of Heaven. While these attractions may have entrance fees, the cost of food and accommodation is reasonable, especially for backpackers staying in hostels.
  • Zhangjiajie National Forest Park, the inspiration for the floating mountains in Avatar, offers dramatic landscapes with steep cliffs and glass walkways. Budget travelers can explore the park on foot or by using the inexpensive public transportation available within the area.
  • The ancient city of Xi'an is famous for its Terracotta Army, a vast collection of life-sized sculptures that have stood guard for over 2,000 years. Entry is affordable, and the nearby city offers budget accommodations and street food.

China’s rich cultural heritage and natural wonders make it a fascinating destination for budget-conscious travelers willing to explore the vast country.

Sri Lanka: Serenity Amidst Tropical Splendor

A few dozen wild elephants playing and bathing in a river in Sri Lanka surrounded by lush jungle.
The Wild Elephant Population in Sri Lanka is Estimated At 7500

Sri Lanka is a tropical paradise that remains affordable for budget travelers. Whether you're wandering through tea plantations, exploring ancient ruins, or lounging on golden beaches, Sri Lanka offers a range of activities at reasonable prices.

  • Colombo, the bustling capital, offers budget-friendly hotels and local markets where you can sample delicious Sri Lankan dishes like kottu roti and hoppers at low prices.
  • Nuwara Eliya, located in Sri Lanka’s hill country, is known for its cool climate and tea plantations. Budget accommodations are plentiful, and visitors can tour the tea estates for little to no cost.
  • Sigiriya, a UNESCO World Heritage site, offers the chance to explore the ancient rock fortress without spending much. For a more off-the-beaten-path experience, Yala National Park is a great place for a low-cost safari, where you can spot leopards and elephants.

From the scenic beaches of Mirissa to the historic temples of Anuradhapura, Sri Lanka is a paradise for those seeking affordable adventures.


These backpacker destinations will prove you don't have to spend a lot of money to explore the world. Whether you’re wandering through ancient ruins or lounging on tropical beaches, the true beauty of travel lies in discovering new experiences without the high cost.

Frequently Asked Questions

What are popular areas in Thailand for backpackers?

What are the best islands in the Philippines to visit?

Is Guatemala safe for backpackers to visit?

When is the best time of year to visit Central America?

When is the cheapest time to visit Thailand and the Philippines?

What are the most popular destinations in Nicaragua?

What are the best temples to visit in Bali?

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