Cambodia named best-value backpacker destination while Rio breaks the bank

By Sarah Gordon

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If you're planning a gap year and budgets are tight, forget sultry nights in Brazil and instead head for Asia.

Five nights' accommodation in Phnom Penh, in Cambodia, costs the same as just one night in Rio de Janeiro, according to the latest hotel prices.

Statistics from hotels.com lists Cambodia as the cheapest backpacking destination in the world for accommodation, with hotels averaging £35 a night, while prices shoot up to as much as £180 per night in Rio and £137 in Sydney.

Backpacker on an empty road

On the road: Backpackers planning a gap year should head to South East Asia if money is tight

And it's not just Cambodia that offers great value, South East Asia is known for its affordability and prices dropped by six per cent on average in the first half of 2013, according to the bi-annual Hotel Price Index.

Currencies across South and South East Asia have dropped in recent months, making the destinations more affordable. Combined with increased competition between hotels, the situation is ideal for cash-strapped travellers.

Hanoi in Vietnam came second in the list of cheapest backpacker destinations, with hotels costing £41 a night, closely followed by Chiang Mai, in Thailand, where accommodation is £44 a night.

The top 10 cheapest spots for hotels were all in South East Asia and India and the biggest price drops were in cultural hotspots on the must-see list of any traveller visiting the region.

Angkor Wat And Lake

Culture vulture: The Angkor Wat temples in Siem Reap are cheaper to visit now as hotel prices in the area have dropped by around 15 per cent

Hotels in Thailand's Chiang Mai and Siem Reap, in Cambodia, are up to 15 per cent cheaper than they were a year ago.

Goa, in India, has also experienced a price drop of 12 per cent, making it the eighth cheapest place for hotels, with rooms costing around £61 a night.

Kate Hopcraft of the Hotels.com brand said: "It's no surprise that South East Asia is the most cost-effective destination on the backpacker route but this latest drop in prices has come at a welcome time for those setting off on their gap year trip-of-a-lifetime"

The cheapest backpacker destinations in the world
Ranking
Destination
2013 Price
2012 Price
% Change
1
Phnom Penh, Cambodia
£35
£36
-1%
2
Hanoi, Vietnam
£41
£48
-13%
3
Chiang Mai, Thailand
£44
£52
-15%< br />
4
Siem Reap, Cambodia
£45
£53
-15%
5
Pattaya, Thailand
£49
£44
10%
6
Ho Chi Minh City, Vietnam
£60
£60
0%
7
Bangkok, Thailand
£63
£62
1%
8
Goa, India
£68
£77
-12%
9
Krabi, Thailand
£77
£75
2%
10
Phuket, Thailand
£78
£76
2%

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