Recently, I've been reading various travel blogs. Part of it is out of nostalgia, but for the most part, it's out of curiosity. I've recently started writing about what I've learned during my time traveling. I learned a lot, and I think it's only fair to share my experiences and advice to fellow would-be travelers looking to go on the same adventure I've been on.
One of the recurring themes I've noticed is that many blogs and travel guides simply tend to either over or underestimate the cost of living, traveling and being in the developing. Given, my experience was only in Southeast Asia, but I think the general misconceptions on money and costs can be transposed to most parts of the world that aren't in the West (i.e. the US, Canada, Switzerland, Norway, members of the Euro, the UK, Australia, New Zealand Korea, Singapore and Japan...sorry if I left someone out).
Redefining Cheap
First and foremost, Southeast Asia, in comparison to the developed world, by and large is more affordable and one of the most common tidbits I received from people prior to embarking on my trip was that “Southeast Asia is cheap.” However, I soon learned that their definition of cheap and the reality varied greatly.
Eating out is probably the best example I can give. Everyone told me that it was 'so cheap' and that you could 'be stuffed for under 1 EUR/USD a meal.' Maybe I wasn't finding the right spots, or maybe I have a much bigger appetite than most people, but in my experience, the cheapest street food meal we could find was in the neighborhood of 2-3 EUR/USD per meal, drinks included. Is that cheap? Compared to the Eurozone and the United States, sure! But it's still 2 to 3 times the commonly held perception. Ditto for hotels and drinks.
Is It Really That Expensive?
On paper, it might seem that way. I remember when I was in Lembongan, chilling on the beach and watching the sunset (and having a couple drinks while doing so). Tourists cruising the beach would pass by the bar entrance, see their promotion for happy hour, and make a remark about how expensive drinks were.
The promotion was a “buy 2 get 1 free,” meaning you would get 3 drinks for the price of 2. The price per-cocktail was in the neighborhood of 2.50-3.50 EUR/USD a pop. Apparently, this was enough to offend the cash-stingy tourist who didn't realize for the equivalent of 5.00-7.00 EUR/USD, they would get 3 drinks. I dare you to find that offer in Western Europe/The United States. It won't happen. You would be lucky to pay 5.00-6.00 EUR/USD per drink in that part of the world.
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| Cocktails in Ko Lanta, Thailand |
Another factor to keep in mind goes down to where you are on the planet. If you're in a major city, chances are, the cost of transporting goods and even the production of others will be relatively low. Any markup in price is usually coming from higher rents and salaries associated with urban economies.
By contrast, if you are on a remote island or way out in the middle of nowhere, the inverse is true; rent and salaries are relatively lower but transportation costs are higher. If the island you're on has no dry dock, then it would make sense that getting goods on shore is labor-intensive, adding to the overall costs. This markup will be reflected in the prices charged to the final customer.
I got the impression during my travels in Southeast Asia that some visitors didn't quite appreciate this aspect of the local economy. Instead, they were more content to complain about how 'expensive' food and drinks were. Just remember to put your surroundings in perspective; you'll realize that nourishment and beverages are cheap but within reason. As an added bonus, you start to observe what makes the local economy work, giving you great insight into an important aspect of the culture.
Relativity And The Value of Your Time
One of the articles I read that inspired this article was this post by the acclaimed travel blogger Nomadic Matt which claimed that the days of cheap air travel are over. I had a hard time validating his point, as I've experienced nothing but the contrary during my travel.
When we were in Southeast Asia and had to change cities, we flew whenever we could. We almost always booked our flights no earlier than one week in advance (many times, we'd do it a day or two before the flight).
Other than our long flights to/from the Philippines (4.5 hours over open sea; this requires taking an aircraft with a special certification called ETOPS), we almost never paid over 100 EUR/USD per flight.
Other than our long flights to/from the Philippines (4.5 hours over open sea; this requires taking an aircraft with a special certification called ETOPS), we almost never paid over 100 EUR/USD per flight.
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| Notice that there are people sitting in the aisle on this bus. Do you really want to subject yourself to 8 hours in this cramped environment? Didn't think so... |
Where I believe this misconception lies is not within the cost of the flight itself but in comparison versus other modes of transport.
Buses are still very much popular in Southeast Asia and, like anywhere else, cheaper than flying. On the surface, if you're comparing an $10.00 bus ride versus an $35.00 flight, then nominally, the bus is 3.5 times cheaper. However, money isn't the only thing valuable to travelers. Time, like funds are not unlimited.
Let's say you want to go from Bangkok to the Southern Port of Krabi to head off to one of the many gorgeous Thai islands in the region. You have the option of either paying $35.00 to fly or $10.00 to take an overnight VIP (a bus with only 36 seats; often the size of business class seats on an airplane). The flight takes 1 hour and the bus takes 12.
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| Krabi, Thailand; Home of the Krab People. |
By contrast, the plane takes one hour. You might not have as much leg room, but you'll barely be at cruise altitude before you start the descent to land. You might be able to tough out some stinky passenger for an hour but how well can you hold it for 12? Security and passport control might still be sketchy, but you aren't going to get a shakedown while in the air.
Counting in the fact that you'll arrive drained and groggy (think being hungover without the pleasure of going out drinking, if that's your thing) and you've now burned a day that you would've spent doing other, more productive activities.
You can argue that getting there is half the adventure, and in all honesty, there's validity in that statement. But from my perspective, it's more worth your while to make those sorts of excursions count.
Nathalie and I swore off bus rides longer than 5 hours thanks to the above-mentioned example. We only made an exception for it in Laos as the route between Vang Vieng and Luang Prabang was absolutely incredible (also there was no airport to fly out of). Instead, we would fly when the journey would take more than an quarter of a day on bus, saving us time, grief and stress.
Nathalie and I swore off bus rides longer than 5 hours thanks to the above-mentioned example. We only made an exception for it in Laos as the route between Vang Vieng and Luang Prabang was absolutely incredible (also there was no airport to fly out of). Instead, we would fly when the journey would take more than an quarter of a day on bus, saving us time, grief and stress.
The Cost of Familiarity
Heading off to the more exotic locations of the planet is one of the greatest adventures any individual can do. A large part of what defines any culture is their traditional cuisine. I doubt anyone would disagree that it is absolutely critical to sample the local foods in order to fully appreciate a certain peoples.
That being said, as delicious as Pad Thai, Pho soup, and Nasi Goreng might be, at one point, you're going to want to sink your teeth into a western-style Cheeseburger (or tofu burger if meat isn't your fancy).
That being said, as delicious as Pad Thai, Pho soup, and Nasi Goreng might be, at one point, you're going to want to sink your teeth into a western-style Cheeseburger (or tofu burger if meat isn't your fancy).
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| A burger in Brussels |
However, the main markup comes from the fact that it's only foreigners and wealthy locals who normally eat this food and as such, the restaurateurs know they can charge more than the average price for grub.
Does this mean you'll break the bank? Probably not. Even if you might pay double than what it would cost to eat on the street, you're still only going to pay between 5.00-8.00 EUR/USD a meal , including (non-alcoholic) drinks. Like above, it's important to take two seconds to remember that back home, you'll be hard pressed to eat the same meal for even close to that price.
As for alcohol, it greatly depends on what country you go to. For the most part, beer was somewhat cheap in Southeast Asia (around 1.00 EUR a beer at an 7-11 and close to 1.50 EUR at a bar). If you're coming from Belgium, this will not sound like a huge discount.
In terms of hard liquor, Western brands are more expensive than they are in the west due to import restrictions. The only place I saw the opposite was in the Philippines where you could get well-known brands of rum and tequila for under 10 EUR/USD a pop. If you're courageous enough to drink local spirits, they'll run somewhere in the neighborhood of 3.00-5.00 EUR/USD a flask. They're certainly more affordable, but drink them at your own risk.
Another quick note: if you're in a majority-Muslim country, alcohol will either be hard to come by or very expensive, or both. Malaysia isn't exactly a choice drinking destination and Indonesia has a major problem with bootleg alcohol. In short, don't plan a drinking holiday around these two countries.
Activities Are Going To Cost More (And That's Probably A Good Sign)
Half the reason you've traveled across the world (and given yourself a week's worth of jet lag in the process) is to explore. Many destinations, especially outside of cities, are filled with exciting indoor and outdoor activities. These include: cooking classes, guided treks, kayaking, canyoning, scuba diving and more.
As you might have gathered, all of these activities cost money. You're either paying for an instructor, a guide, equipment, and more. This is of course normal (if you know a place where I can do all of these things for free, please let me know) as nothing in life comes gratis. There is of course variation on almost any market, but that being said, there is one rule that you need to keep in mind when shopping around for an activity: you get what you pay for.
This, by far, is the biggest factor to consider when shopping for an activity. In any given town that's a tourist base, there will be plenty of 'travel agents' offering guided tours and excursions for the regions most popular activities.
It might be tempting to go with the cheapest option, but consider that you're in a part of the world that doesn't have strictly enforced safety regulations. Cutting corners, sadly, often time results in tragedy, and this is usually found when the tour operator lowers prices to attract customers.
Another factor to consider is how well the employer treats its employees. When we were in Laos, we wanted to go kayaking. In the town of Luang Prabang, we found a tour operator who not only offered exciting activities, but also claimed that they paid their staff fair salaries. The price was a bit higher than competitors, but the quality was there. Additionally, we felt that providing workers with fair pay does a lot to help local workers rise out of extreme poverty.
We compared that with other stories we heard from people who used cheaper operators and we were thankful we spent the extra cash. Fellow travelers told us how they either didn't have enough water or the meal included was a joke. Sometimes, the guide barely spoke English or would be unhelpful. It paid off for us to invest the additional funds.
I would like to say that this rule doesn't fully apply to scuba diving. Usually, prices are somewhat fixed in scuba towns and the quality really depends on the staff and the equipment. Word of mouth spreads quickly, so it's fairly easy to find out who is good to dive with.
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| Kayaking in Ha Long Bay, Vietnam |
Another factor to consider is how well the employer treats its employees. When we were in Laos, we wanted to go kayaking. In the town of Luang Prabang, we found a tour operator who not only offered exciting activities, but also claimed that they paid their staff fair salaries. The price was a bit higher than competitors, but the quality was there. Additionally, we felt that providing workers with fair pay does a lot to help local workers rise out of extreme poverty.
We compared that with other stories we heard from people who used cheaper operators and we were thankful we spent the extra cash. Fellow travelers told us how they either didn't have enough water or the meal included was a joke. Sometimes, the guide barely spoke English or would be unhelpful. It paid off for us to invest the additional funds.
I would like to say that this rule doesn't fully apply to scuba diving. Usually, prices are somewhat fixed in scuba towns and the quality really depends on the staff and the equipment. Word of mouth spreads quickly, so it's fairly easy to find out who is good to dive with.
Adjusting Expectations and Making The Most Of Your Time and Money
Overall, it's important to keep these few key points in mind in order to order to help maximize your experience and minimize nasty cash-related surprises:
- Budget Wisely. Take a base number compiled from your research then multiply it by 1.5 (or even by 2). Use this new number as your budgeting reference. This way you won't feel like you're blowing your entire savings nor constantly getting ripped off while you travel.
- You will more than likely pay the “gringo tax” in the developing part of the world (doubly true in the touristy spots). Prices in the developing world get marked up for foreigners. It sucks, but it's an unfortunate part of life in these parts of the world. You can always haggle down, but don't expect to get the same price as a local, at least most of the time.
- You're on vacation (or have even taken extended time off to travel), your time is yours to do what you feel with it. How valuable is that? Way more than spending accumulative days taking the longest way possible to go from A to B. Maximize your downtime by minimizing your transit time.
- Before you begin to get angry about food being more expensive, stop and put your surroundings in perspective. Keep in mind that you're still eating and drinking cheaper than you could back home. Observing the different prices will also help you to dissect the local cost of living and doing business.
- Activities will often cost more than the day-to-day cost of living, but that's alright. You've made the effort to fly across the world to discover an exciting foreign land. It's worth spending the extra money with a reputable tour operator to ensure a safe and memorable experience.
Voila! I hope these tips help you planning your excursion to the playground that is the developing world. Do you have any points you'd like to add? Do you disagree with what I have to say? I'd love to hear about it! Don't hesitate to leave a comment below!
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