Monday, July 16, 2012

Cost: Peru for 3-Weeks

We know that everyone spends differently, and a budget can be extremely variable; however, after leaving an area, we want to provide some perspective on the cost associated with staying there for anyone interested in doing a similar trip.  Our budget of $100 - $150/day is for 2 people and does not include the $10,000 round-the-world flights (plus trip insurance) already paid for.  The budget also does not account for the bills we are continuing to pay at home.  Our budget allows for a comfortable, low-to-mid-range lodging in hostels or budget hotels with private bath, meals/drinks, use of public transportation, and cost to do some sightseeing and/or activities.  As foodies, we are not depriving ourselves from eating and drinking whatever and whenever we want to, although we are usually focused on finding budget, local cuisine.  Most of the time, breakfast seems to be included in the cost of lodging, so we are paying for 1-2 meals/day. An article titled, "Set Your Daily Number" by the veteran travel bloggers from Married With Luggage confirms that a daily average is a simple strategy for setting and meeting a budget.  We've got in the habit of taking a few minutes to record our daily expenditure so we can make small adjustments along the way.

PERU
We spent 22 days total in Peru, where on average, $30-50 gets you decent lodging with a not-very-interesting breakfast. Prices were comparable to Ecuador, although we stayed in more metropolitan and tourist locations than in Ecuador, which drove the prices up a little more. Lodging was about the same, but the food and drinks cost more in tourist centers. Still, we could find a full meal for around $8; 25-50 cents for bottled water; a large bottle of beer for $2; laundry service costs $2-3/kg.  We ended up spending 7 nights in Los Organos beach, 8 nights in Lima, 5 nights in Cuzco, and 2 nights in Machu Picchu. Peru currency is the Nuevo Soles, although the prices listed have been converted into US dollars. Here is our breakdown:

LODGING
$43/day.  Not bad! We 'splurged' on a the perfect beach side bungalow in Los Organos for $60/night, but made up for it in Cuzco at the best hostel we've ever stayed in for $28/night. All cost is for double occupancy.

MEALS/GROCERIES
$42/day for 1-2 meals per day, including a few more expensive places due to being in the city or the kind of restaurant. We opted for quality in Machu Picchu, and spent more than expected at Inkaterra Lodge. Also, we treated ourselves to a nice meal at celebrity chef Gaston Acurio's La Mar Cebichería on our last day in Peru. Again, we continued to eat every meal out because we haven't had a kitchen to cook in. The portion sizes are usually very generous in South America so we generally end up sharing one plate of something. Good thing we are agreeable (most of the time) on what we want to eat! Consider doubling the budget if you eat a lot.

DRINKS (bottled water, beer, wine, soda)
$18/day, almost double what we spent in Ecuador. Tourist-centric locations in Lima, Cuzco, and Machu Picchu charge more for drinks at bars and restaurants. Although the cost of buying bottles of beer and water from a regular tienda are still very cheap.

TRANSPORTATION
In our calculations, we included the $640 already paid over 7 months ago for the domestic StarPeru flight and PeruRail train ride to Machu Picchu. Plus, we splurged on a first-class bus for our 18-hour travel from the northern beaches of Peru to Lima for $110. So, our transportation cost ended up being quite out-of-budget at $40/day. Peru is a much bigger country than Ecuador so doing strictly bus travel would've taken forever. Also, transportation to Machu Picchu is just plain costly, and difficult to keep withi a budget. Hopefully, we can make up for this in another country.

PERSONAL CARE ITEMS/SERVICES
$57 total on haircut/shave, soap, toothpaste, etc.  The most expensive item was money spent on mosquito repellant in northern Peru, and it wasn't even a good product. Our suggestion is to bring your own repellant that contains enough DEET. ($2.50/day)

SOUVENIRS/POSTCARDS (including postage)
Just like Ecuador, international postage to send postcards is expensive. $122 total or $6/day. 

CLOTHING/LAUNDRY
When we arrived at the beach, we had to buy some cheap beach towels and hats, and invested in some alpaca accessories (scarf, hat) while in Cuzco, for a total of $119 or $5/day in clothing and laundry services. Obviously, per our expenditure, we didn't buy the super expensive alpaca goods! Plus, whatever we buy, we have to transport for the remaining 6-months, so that fact usually discourages us from spending too much.

ATTRACTIONS/ADMISSION
The main cost here was the ~$100 entrance fee to Machu Picchu. $5/day.

WIFI/COMPUTER/ATM FEES
$49 on ATM transaction fees and re-charging our Skype account. We spent $1 on wifi at the airport in Cuzco. Until now, we've handled almost every transaction in cash because there are added fees for using a credit card. Every penny counts when unemployed. :) Again, our bank reimburses the typical $5 ATM fee initially charged, so the only expense has been the 1% of the withdrawal surcharge. $2.20/day.

TOTAL
[Drumroll]...We came to $162/day, $12/day OVER budget due to transportation costs. Without Machu Picchu, we would've been doing great at $130/day (similar to Ecuador), but Machu Picchu was totally worth the extra cost, and we tried our best to keep it within budget...we swear. Since we are staying in an apartment with a kitchen in Buenos Aires, we should be able to contain our costs again, and in anticipation of higher expenses going into Spain and the rest of Europe, starting August 7th.