MercoPress. South Atlantic News Agency

Santiago, Montevideo, among cheapest cities for tourists

Inflation is threatening the capital of Argentina Buenos Aires, a magnet for tourists.

Santiago is one of the cheapest cities for foreigners, according to a survey published by finance consultancy Mercer. The Chilean capital is the fourth most economical city in Latinamerica and the 15th cheapest worldwide. The Uruguayan capital Montevideo also figures among the most accessible and liveable cities in the region.

The Cost of Living Survey of March 2009 compares the prices of 200 products and services used commonly by foreigners -including rent, transport, and food - in 143 world cities.

Tourists are also attracted to Santiago because it has the best infrastructure in Central and South America, according to a Mercer survey published in April.

Santiago has become cheaper since last year, falling 36 places. Mercer attributed the change to the strength of the Chilean peso, the value of which increased by 25% compared to the US dollar since last year’s survey.

The changing value of the dollar was highly influential in Latin America, causing 11 cities in the region to move by more than 10 places compared to last year’s survey.

Caracas is the most expensive city for foreigners in Latin America. The Venezuelan capital jumped 74 places from last year to become the fifteenth most expensive city worldwide, caused by high inflation affecting products and services.

Buenos Aires is also more expensive thanks to inflation, reaching 112th place this year.

Sao Paulo and Rio do Janeiro have become cheaper, having fallen from positions 25 and 31 to 72 and 73. Montevideo figures in position 131, which is below Buenos Aires (112) and Santiago (128). Mexico City and Monterrey are among the cheapest cities to live in Latinamerica, positioned, 137 and 143.

Topping the list of the most expensive cities worldwide is Tokyo, displacing last year’s leader Moscow, which now ranks third. The Japanese commercial centre, Osaka, is the second most expensive.

Johannesburg, South Africa, replaced Asunción, Paraguay, to become the cheapest city worldwide for foreigners.

The article was compiled with information from Mercer, Santiago Times and MercoPress.