Cheap travel: countries where the Brazilian real is worth more are options for tourists.
Factors such as purchasing power, currency availability, and cultural conventions must be considered.
Countries where the local currency is worth less than the Brazilian real can be travel alternatives for Brazilian tourists who want to save money. However, it is necessary to consider some factors such as purchasing power, currency options, and cultural conventions. This is because destinations with a currency less valued than the real are not always necessarily cheaper.
When planning an international trip, it's essential to keep in mind some basic factors, such as the cost of living in each country. This means considering everyday issues like the price of public transportation or the average cost of meals.
Chile, for example, known as an adventure destination – home to famous places like Chilean Patagonia and the Atacama Desert – has a local currency that, at first glance, is worth less than the Brazilian real. In conversion, R$1 is equivalent to 170,65 Chilean pesos. When researching accommodations, meals, and flights, Chile proves to be a not-so-cheap destination, even with the currency difference.
A general tip for travelers is to pay for hotels in dollars or with a credit card, as some offer Value Added Tax (VAT) discounts. It's important to plan ahead and assess whether it's more advantageous to carry cash in dollars or pay by card. To do this, it's worth monitoring the exchange rate. Convert dollars to reais. daily.
Advantageous tourist destinations
To save money on international trips, more than just the exchange rate, it's important to consider the purchasing power of the currency. Therefore, in order to prioritize cost-effectiveness in each destination, it's worth considering less popular locations, such as Eastern Europe, Asia, or Latin America. The exchange rates shown below were researched in January 2022.
Vietnam is considered the most advantageous country for Brazilians. This is because accommodation and food are very cheap, despite the high cost of airfare. The destination offers a chance to experience a culture completely different from Brazilian culture, as well as appreciate beautiful landscapes. The currency is the Vietnamese dong, and R$1 is equivalent to 5.742,88 Vietnamese dong.
Colombia is one of the countries where the Brazilian Real is worth the most in South America. Considered a must-see destination for backpackers traveling through the continent, it also boasts the unique charm of its Caribbean waters. The exchange rate is favorable, with R$1 equaling 807,38 Colombian pesos, and there are frequent flight deals. Promotions are usually for San Andrés Island and Cartagena de Indias.
Heading to Southeast Asia, Thailand is one of the cheapest destinations and one of the richest regions in terms of natural beauty and cultural identity. The country tends to be economical because, in addition to the currency being devalued in relation to the Real – R$1 is equivalent to 7,48 Thai baht – the cost of living is low. Travelers will also find a variety of affordable accommodation options.
The Philippines, an archipelago of idyllic islands, is a great option for beach lovers. Besides its tropical beauty, tourists also benefit from the country's affordability, especially in accommodations and meals, which are cheaper than average. For example, R$1 is equivalent to 12,59 Philippine pesos.
Big Mac Index
To consider whether it's possible to save money on an international trip, one can consider what's called... Big Mac IndexThis is a method, published by The Economist magazine, to measure whether market exchange rates for different countries' currencies are undervalued or overvalued.
The Economist converts the average national price of a Big Mac into US dollars twice a year, using the exchange rate at that time. Since a Big Mac is a globally standardized product, the idea is that it should have the same relative cost in all countries. Therefore, the differences in the cost of the sandwich, in US dollars, reflect the differences in the purchasing power of each currency.
It is worth noting that other factors also need to be considered for a more accurate analysis, such as the level of competition in the market, the use of imported raw materials and components, wage regulations, and tax rates, as these contribute to price variations between nations.
Conventions and numerals
In a press interview, Necton's chief economist, André Perfeito, explains that each country operates with a different monetary policy, which makes numerical comparisons between currencies ineffective. To calculate the exchange rate between countries, a comparison with the dollar is generally made.
Taking Brazil and Mexico as examples, this rate is close to R$1 for every 4 pesos. As Oxford Economics economist Felipe Camargo points out in an interview, this difference does not necessarily mean that it is possible to buy four times more in Mexico, since salaries in Mexico are nominally higher than in Brazil.
Therefore, more important than the exchange rate is considering the purchasing power of each currency to assess the advantages of international travel, even if the destination has a currency worth less than the Brazilian real.