5 cheap South America vacations to enjoy on a budget

Explore South America without Breaking the bank

South America is a dream destination for travelers looking to experience everything from breathtaking landscapes and vibrant cultures to delicious food—all without spending a fortune. The continent offers countless affordable options for those eager to explore, from vibrant cities to natural wonders. Whether you’re a backpacker, a budget-conscious tourist, or simply someone looking to travel without overspending, South America has something for you. Here are five budget-friendly South American vacation spots that provide a perfect blend of adventure, culture, and affordability.

1. Cusco, Peru: A Journey Through History Without the Price Tag

Cusco, Peru, is often seen as the gateway to the world-famous Machu Picchu, but it’s also a destination in its own right. Rich in history, culture, and stunning architecture, Cusco offers budget travelers the chance to explore the remnants of the Inca Empire and colonial Spanish influences.

Why It’s Affordable:

Accommodation in Cusco ranges from super affordable hostels to comfortable budget hotels, especially if you book ahead or avoid peak tourist season. The city is also walkable, which cuts down on transportation costs. Local eateries serve up hearty dishes like lomo saltado or aji de gallina for a few dollars, and many local attractions are either free or available at a minimal cost.

What to Do:

  • Plaza de Armas: The central square is full of energy and surrounded by historical buildings. You can spend hours people-watching or taking in the city’s colonial architecture without spending a dime.
  • Sacsayhuamán: This impressive Inca archaeological site is located just outside the city and costs significantly less than other tourist attractions like Machu Picchu.
  • Local Markets: Don’t miss Cusco’s vibrant markets, like San Pedro Market, where you can sample local dishes or pick up affordable souvenirs.

Pro Tip:

If you’re determined to visit Machu Picchu, consider hiking the Inca Trail on a budget by joining a group tour or opting for the less expensive train ride from Ollantaytambo to Aguas Calientes.

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2. La Paz, Bolivia: A High-Altitude Adventure That Won’t Empty Your Wallet

Perched at over 11,000 feet above sea level, La Paz is the highest capital city in the world. With its bustling markets, cable cars that crisscross the city, and unique street art, La Paz is an adventurous traveler’s playground. And the best part? It’s one of the cheapest cities in South America to explore.

Why It’s Affordable:

Bolivia is known for being budget-friendly, and La Paz is no exception. From low-cost accommodations in hostels to meals that cost as little as $2-3, you’ll find that your money stretches far here. Transportation is also inexpensive, with the city’s impressive Mi Teleférico cable car system offering spectacular views for less than $1 a ride.

What to Do:

  • Witches’ Market: This quirky market offers a fascinating insight into Bolivia’s culture and traditions. Even if you don’t buy anything, browsing the stalls is an experience in itself.
  • Valle de la Luna (Moon Valley): This otherworldly landscape is located just outside the city and offers a budget-friendly adventure for nature lovers. Entry fees are typically under $3.
  • Death Road: If you’re an adrenaline junkie, consider a budget-friendly tour down the world’s most dangerous road. You can find tour operators offering this hair-raising experience at competitive prices.

Pro Tip:

Stay in the Sopocachi neighborhood, a trendy area known for its budget accommodations, cheap eats, and vibrant nightlife.

3. Salento, Colombia: Coffee and Cloud Forests on a Budget

Tucked in Colombia’s famous Coffee Triangle, Salento is a charming town known for its colorful buildings, lush coffee farms, and proximity to the towering wax palms of Valle de Cocora. If you’re a nature lover or coffee enthusiast, Salento is a must-visit destination that’s surprisingly easy on the wallet.

Why It’s Affordable:

Salento offers plenty of budget accommodation options, from hostels to affordable eco-lodges. Many attractions, like hiking through the Cocora Valley, are either free or require a minimal fee. Food is inexpensive, with meals costing around $5 in local eateries.

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What to Do:

  • Coffee Farm Tours: Many coffee farms offer affordable or even free tours where you’ll learn about coffee production from bean to cup. These tours usually include a tasting at the end.
  • Valle de Cocora: Hike through this stunning valley to see the world’s tallest wax palms, which can grow up to 200 feet tall. The hike itself is free, though a small entry fee is required at certain points.
  • Explore Salento’s Town Square: Wander through the town, grab an arepa from a street vendor, and take in the vibrant colors of the buildings surrounding the square.

Pro Tip:

Salento can get crowded during weekends, so if you’re looking for a quieter experience, visit during the weekdays to enjoy lower accommodation rates and fewer tourists.

4. Montevideo, Uruguay: Culture, Beaches, and Affordable Fun

Uruguay’s capital city, Montevideo, offers a blend of laid-back beach vibes and cultural experiences. The city is smaller and less expensive than nearby Buenos Aires, but it has just as much charm and history to offer.

Why It’s Affordable:

Accommodation in Montevideo tends to be cheaper than in other South American capitals, and if you avoid the touristy areas, you can easily find meals for under $10. Plus, many of the city’s best attractions are free or very affordable, making it an excellent option for budget travelers.

What to Do:

  • Rambla de Montevideo: This 13-mile-long promenade along the coast is perfect for a leisurely stroll or bike ride. Best of all? It’s completely free.
  • Mercado del Puerto: While the market can be a bit touristy, it’s still a great spot to sample local dishes like chivito (a popular sandwich) or a classic Uruguayan barbecue at an affordable price.
  • Ciudad Vieja (Old Town): Explore the colonial streets of Montevideo’s old town, where you’ll find historical landmarks, museums, and vibrant street art.
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Pro Tip:

If you’re visiting during the summer, take a bus to nearby Punta del Este for a day trip. While the beaches can be crowded and more expensive, there are still plenty of affordable activities if you plan ahead.

5. Mendoza, Argentina: Wine Tasting Without the Price Tag

Mendoza is Argentina’s wine capital, and while the region is known for its world-class Malbec, it’s also a budget traveler’s paradise. You can enjoy wine tastings, stunning mountain views, and outdoor adventures at a fraction of the cost of more touristy wine regions like Napa Valley.

Why It’s Affordable:

Many of Mendoza’s vineyards offer free or low-cost wine tastings, especially if you visit smaller, family-owned wineries. Accommodation ranges from budget-friendly hostels to affordable boutique hotels, and public buses make it easy and inexpensive to travel between vineyards.

What to Do:

  • Wine Tasting by Bike: Rent a bike for around $10 a day and pedal between vineyards. Many smaller wineries don’t charge for tastings, and the ride itself offers stunning views of the Andes.
  • Aconcagua National Park: For adventure lovers, this park is home to the highest peak in South America. A day trip to the base of Mount Aconcagua offers incredible hiking opportunities for a small entrance fee.
  • Plaza Independencia: Mendoza’s central square is a great place to relax, people-watch, and soak up the city’s laid-back vibe without spending any money.

Pro Tip:

Visit during the Vendimia Festival in March, when Mendoza celebrates its grape harvest. The festivities are a great way to experience the local culture, and many events are free or low-cost.


South America offers incredible destinations for every type of traveler, and you don’t need a big budget to enjoy them. Whether you’re hiking through ancient ruins in Peru, sipping wine in Argentina, or exploring a lively city in Bolivia, these five destinations prove that an unforgettable vacation can be affordable.