The World's 5 Cheapest Island Destinations For A Budget-Friendly Vacation

Getting the most out of an adventure is a high priority for most travelers. Cost effective vacations are often some of the most rewarding, in many more ways than just the obvious bank account benefit. Jetting off to a cheap vacation spot allows you to make the most of your budget, splurging on improved experiences all around the itinerary as a result of lower prices across the board. This can be particularly valuable when visiting an island getaway. Island vacations often cost more than other beachside jaunts. The environment tends to lean toward sophistication and elegance in many island destinations, and that's to say nothing of the increased cost of getting to a remote island area over a more typical river, lake, or beach vacation closer to home. 

Getting your money's worth can feels great — and it's even sweeter when leveraging funds like your tax refund to buy the experience, even if that's not one of the best uses for the money on a broader scale. This means that finding a place where your spending power will go farther than other destination locations can be key. With that in mind, it's important to keep in mind that pricing can vary greatly on your journey to and from your chosen island. The time of year can also play a major factor, as does your particular transit route requirements. While this makes closer islands generally more affordable on the whole, a few further Asian destinations loom large for affordability. These five islands are some of the cheapest destinations around the world.

Naxos is one of the most affordable — if not the single cheapest — Greek islands in the sea off Europe's eastern mainland landscape. Naxos is part of the Cyclades Archipelago and can be found just a short voyage out from Athens in the Aegean Sea. Its central location gives the island a bit of cover when it comes to the weather, and there are many beautiful dive sites and snorkeling opportunities to be found in the brilliant blue waters that surround the island. Hotels on the island are frequently well within the range of affordability, with luxurious options standing at roughly $170 per night in the summer months.

Getting to Naxos requires a short ferry from Athens, or another nearby island (such as Mykonos). Naxos is a laid back destination that won't feature the same raucous energy in great abundance that can be found at some of Greece's more party-oriented destinations. Even so, those looking for a quiet getaway on a beautiful beach, or even a bit of time out in the sunshine while hiking in undisturbed nature are sure to enjoy the Naxos scenery.

Another great option for holidaymakers seeking an affordable getaway is Puerto Rico. Instead of looking far and wide for a discounted island adventure, Americans can jet off to Puerto Rico from a huge range of departure cities (more than two dozen alone from Denver, with flights from as eastward as Boston) Moreover, you won't need any special visa permissions to touch down in Puerto Rico since it's an American territory.

Puerto Rico isn't necessarily one of the cheapest islands you'll find in the world; but it is a seriously cost effective option within the wider Caribbean region. Median hotel pricing is roughly $160 for a night — with peak season rates rising to around $300 (although traveling off-peak or during a shoulder season can be a great way to reduce your costs even more). Comparatively, this is not only a solidly affordable destination as a result, but one that should give travelers seeking out stays along other Caribbean islands pause. You can easily pay upwards of $500 to $600 per night in other, nearby places like the Bahamas. Coupled with the range of travel options that make it affordable to get to, Puerto Rico is a wonderful spot to soak in the sun and explore the unique local culture that blends island living and heritage with American identity in a way unlike anything you'll find on the mainland.

Bali is frequently touted as one of the most affordable destinations in the world — however, you'll likely spend a bit more to get here, since Indonesia is quite a distance even from its closest American neighbor in Hawaii (over 6,300 miles). With that said, food and drink in Bali is frequently found at dirt cheap price points, and the average hotel stay during the island's dry season — and therefore its peak tourism window — stood at $225 a night in 2023. Similar pricing has remained in effect in the island's vacation season window since.

Indonesia more broadly, and Bali specifically, offer a nature-lover's paradise. The island retreat is the perfect option for a vacationer looking to unplug and reset. There's an abundance of natural, outdoor activities to engage in that are often free or immensely cheap (potentially only requiring you to figure out the local transportation schedule). Hiking in forested areas will bring you into grottos and natural bath areas that include beautiful scenery and perhaps even a waterfall or two for good measure. There are also a great many temples to be found here. This makes it a solid choice for those who want to marvel at some of humanity's most impressive building efforts. Plus, there's a laundry list of spectacular beaches to explore.

The Philippines is a place of massive potential for a traveler willing and able to haul themselves across the world. Getting here is no small feat for a vacationer starting their travel itinerary in New York or even Houston, but once you arrive the journey will have been worth it. While the country's 7,600-plus islands are all unique in their own magical way, Boracay is special for a particular blend of reasons. It's a dirt cheap holiday destination, for one thing, and it's a phenomenal party island that is constantly rocking. While you can find quiet beach and jungle hike options throughout the island's pristine landscape, that's not what most visitors come for. 

Boracay's main town area features a few sub-regions known as 'stations' along its white sand beach. There's also Puka Beach in the north to consider. Station 2 is the heart of the party here, but if you go a bit farther south, and make the walk up the sandy shore from Station 3, you'll find the best deals on hotels and hostel accommodations. Boracay also plays host to a number of amazing dive sites, so aquatic explorers can have something to get excited about when considering the island as their getaway destination. It's important to note that there are no direct flights to the island. Instead, you must fly to Caticlan Airport, or the further away Kalibo International Airport, on a neighboring island. From here, you need to take a short ferry to Boracay to kick off the fun.

Trinidad and Tobago sit in the bottom of the Caribbean Sea as a pair of islands just off the South American coast. When considering the rule of thumb that suggests not spending more than 10% of your net earnings on vacations every year, this island pair can deliver a resounding value to hopeful travelers. The average hotel price per night, during the nation's peak travel season, rises to $278 with median prices resting at a massively affordable $148 per night. There's also a plethora of cheaper options to choose from throughout the dual island communities, meaning a budget traveler can still find a great deal on a vacation to the coastal seascapes during peak season.

A fully organized vacation schedule including excursions, activities, and lodging will run the average traveler roughly $1,700 for a week here. However, for an adventurer seeking a minimalistic beach getaway without much fuss or extravagance, that cost can be sliced down even lower. Much like Puerto Rico — located further north in this sprawling set of interconnected island chains — Trinidad and Tobago is among the cheapest island destination in the world, and certainly within the region it occupies.