Why Indonesia Is the Cheapest Travel Spot for Americans

1 month ago 13

August 14, 2025 | 11:28 am

Residents carry gebogan around the village at the opening of the Penglipuran Village Festival 2025 in Penglipuran Tourism Village, Bangli, Bali, on July 10, 2025. Antara/Fikri Yusuf

TEMPO.CO, Jakarta – Indonesia has been named one of the cheapest travel destinations for American tourists, according to a study by the financial trading firm, The Forex Complex. The study reports the average daily cost for a vacation in Indonesia is a mere US$70.23, or approximately Rp1.1 million.

Despite its low prices, the report notes that Indonesia's 1.95% inflation rate contributes to a gradual increase in the cost of goods and services.

Thailand was also recognized as a top budget-friendly destination, with an average daily cost of US$81.87, or approximately Rp1.3 million. The report suggests that the weakening of the Thai baht against the US dollar is a key factor in making the country cheaper for Americans.

Study Methodology

As reported by Travel and Leisure, the UK-based financial trading company evaluated 19 popular international destinations. To determine its rankings, the company considered three key factors: the average daily tourism costs in US dollars, the local inflation rates, and the year-over-year change in the currency exchange rates of these destinations relative to the dollar.

The study considered several common expenses, including the costs of accommodation, transportation, and food across the 19 popular tourist spots worldwide.

Iceland is the Most Expensive Destination

The study's experts found that the most expensive destination on the list is Iceland. The average daily vacation costs there exceed US$400, or about Rp6.4 million, which is the highest of all countries included in the study.

The report also pointed out that Iceland's 5.5 percent inflation rate adds to the already high costs of hotels, food, and transportation. "Currency fluctuations can significantly reshape travel costs, even in countries with stable local prices," a spokesperson for The Forex Complex stated.

Although day-to-day expenses often shape the perception of affordability, subtle shifts in exchange rates can have a significant impact on an American tourist's vacation budget. The report warns that in 2025, tourists who overlook currency trends may find themselves with a more expensive summer trip than they anticipated.

The second most expensive destination is Australia, where the average daily vacation expenses are around US$280, or Rp4.5 million. Although Australia's inflation rate is relatively low at 2.4 percent, the overall costs remain high.

Mexico ranks third on the list, partly because of the Mexican peso's strong 6.4 percent appreciation against the US dollar. This adds to the costs for American tourists, even though the country is generally more budget-friendly than many European destinations.

Editor's Choice: 10 Best Places to Visit in September 2025 Around the World

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