Worried that an island vacation won’t fit into this year’s holiday budget? Don’t overstress. While some destinations are more suited to those with deep pockets (hello, Maldives), there are plenty of gorgeous islands for vacationing that won’t break the bank. It’s no secret that travel has become more expensive — thanks a lot, inflation.
Between 2022 and 2023, airline ticket prices alone jumped by 25%, according to the Federal Reserve Economic Data. By choosing the right destinations at the ideal time of year (off-season is always the cheapest), you can enjoy a budget-friendly island vacation that will put the “yay” into your holiday, not to mention a whole lot of “ahh.”
We’ve scoured the globe (and the internet) to find the most affordable vacation destinations you’ll adore. From the sunny isles of the Caribbean to Bali’s laid-back strands to Scotland’s magical Isle of Skye, there’s no lack of beautiful and affordable places to visit for an island vacay. And with all that money you’ll be saving, you can order an extra pina colada or two by the pool.
To ensure the islands we’re recommending are both gorgeous and budget-friendly, we searched for places with cheap things to do, fun attractions, stunning landscapes, and affordable hotels with high ratings on Booking.com and Tripadvisor, among other sites. We’ve also personally visited quite a few of these Elysian wonderlands, so we can assure you from first-hand experience that they’re as fabulous as you’d hope they’d be.
1. Sri Lanka, Asia
It’s easy to stick to a budget when visiting Sri Lanka. After you’ve paid for airfare, which will be the largest expense, you can expect reasonable rates on hotels, food, and transportation. For example, a night at Jayananda Estate Villa costs $17 with breakfast, while those visiting Undawalawe National Park can stay at Elephant Side Bungalow for $5 a night with breakfast. Park entry is $63 per person, but you’re guaranteed amazing views of elephants and other wildlife.
Taking the train is one of the most scenic and affordable ways to travel around Sri Lanka. Tourists rave about the bucket-list journey from Colombo to Badulla. It takes about 10 hours, but is breathtaking and affordable — tickets cost around $9.30 for third class or $15.50 for first class on the luxury Ella Odyssey Train. Buses are even cheaper but can be bumpy, crowded, and confusing to find. For a budget-friendly meal, Flow in the Hilton Colombo Residences will cost between $3 and $11.
2. Zanzibar, Tanzania
If you dream of sunning yourself on a tropical island surrounded by translucent, turquoise water, head to the stunning archipelago of Zanzibar. Set just off the coast of Tanzania, along Africa’s East Coast, this natural paradise overflows with history, culture, and delicious food, not to mention pristine (and super cheap) beaches blanketed with soft, white sand. Menu items at Lost Soles Bar in Jambiani Village’s Garden Beach Bungalows range from $4 to $13 and come with rave reviews.
Zanzibar’s capital, Zanzibar City, is where you’ll find the Stone Town, a UNESCO World Heritage Site. One of the only ancient towns in Africa, this cheap place to visit boasts affordable hostels, hotels, lodges, and more, starting at $20 per night. Diverse accommodations are rampant throughout, ranging from one-bedroom apartments for $21 in Kiwengwa Beach to under $100 for a double room (including breakfast) at the Taj Nungwi Hotel in Banda Kuu.
3. Bali, Indonesia
A once-in-a-lifetime vacation destination, Bali bursts with beauty in all forms — from deep jungles to idyllic beaches to verdant rice fields to towering mountains. Luckily, it’s easy and super cheap to explore the diverse landscapes of this Indonesian haven. Perama Tour & Travel offers a shuttle bus that costs just over $6 to travel 20 miles from Kuta to Ubud, and renting a car with a driver for eight hours will start at around $43.
When it comes to food, you’ll find the cheapest options further away from tourist hotspots, like the beach at Jimbaran Bay and Nusa Dua’s resort area. Street food is cheap and available across the island, or you can grab a filling beef rendang meal at Waroeng Bernadette in Seminyak for under $9. Accommodations range from Parthi Puri Ubud, a stunning bed and breakfast for $12 a night, to $30 for a deluxe garden room at the four-star New Sunari Lovina Beach Resort.
4. Malta, Europe
Malta is a haven for history buffs. This dreamy island lies south of Sicily and offers a dazzling mix of ocean views and historic sites for much cheaper than those in mainland Europe. Here, you’ll find three UNESCO World Heritage properties, including the nation’s capital, the City of Valletta. There’s no cost to see many of Malta’s attractions, including the upper and lower Barrakka Gardens, which offer captivating views.
Pastizzi is a cheap Maltese street food in almost every town and village. The pastries often cost under $1. For a complete meal, entrees at Forty Fishes costs as low as $11. As for spending the night, rates at So City Adults-only Hotel start at $80. Or, book the four-star Ax Odycy Hotel for about $140, including breakfast. Malta’s main Island (Malta) is about 16.8 miles long and 9 miles wide, meaning you won’t need to spend much on transportation. The average bus ticket costs about $1.60 in the off-season and $2.20 in summer.
5. Madeira, Portugal
Budget-friendly Madeira offers fabulous weather year-round. With highs ranging from 65 degrees Fahrenheit in February to 79 degrees Fahrenheit in August, you’ll never freeze or melt in this Portuguese island destination. Once home to soccer great Christiano Ronaldo, Madeira is a perfect place to soak up magical views from hillside terraces spotted with vineyards, hike towering mountains, or brave the glass platform at the Cabo Girão Viewpoint.
Accommodations are plentiful and range from apartment rentals costing about $77 per night to $188 for a double room and breakfast at Aqua Natura Hotel. Food at Lido’s Tavern (A Poncha do Lido) will cost between $2.20 and $11, while dining at the more upscale Marcel’s Bistro in Santana will run between $15 and $20 a head. The cheapest way to get around is by bus. A one-day ticket will cost about $5, while a three-day pass costs about $12.50 with Horários Do Funchal.
6. Punta Cana, Dominican Republic
Craving the feeling of digging your toes into uber-soft sand? A trip to the Dominican Republic will tick that box. An island nation sandwiched between the Atlantic and Caribbean Oceans, the DR is known for its pristine beaches, delicious food, and fabulous hotels, many of which are all-inclusive. Punta Cana is especially popular with travelers searching for a good deal. An ideal place for an unforgettable Caribbean vacation, the shores of this touristy region are lined with resorts catering to all kinds of vacationers.
A two-bedroom apartment at Serena Village can cost as low as $51 a night, while a stay at Ducassi Suites Sol Caribe Hotel Beach Club & Spa will cost about $70. All-inclusives are a big hit in this area — like the Live Aqua Beach Resort Punta Cana, which can cost as low as $570 a night. They’re pricier but include activities, food, and beverages.
7. Puerto Rico, Caribbean
Outdoorsy types will love a trip to Puerto Rico, a gorgeous island in the Caribbean Sea. The best part? This holiday won’t break the bank. Spend the day lounging on a beautiful beach (there are almost 300), touring Spanish ruins, or swimming in a bioluminescent bay — these adventures won’t cost a penny! Then, grab a bite at Kabanas in San Juan. A Fresh Island Fish Sandwich costs $18.85 or $10 on Thursdays. Tacos are only $2.22 on Tuesdays.
The cheapest way to get around is by públicos, a shared van service with specific pickup spots. If you’re staying in Old San Juan, flag down a garita (golf cart) for a free ride. Hostels are your cheapest bet, but cheap bed and breakfasts, apartments, and hotels are also available. A studio apartment at Itza-Bella Suites will cost about $80 a night, while a king room at the Hyatt Place Manati is about $160 with breakfast.
8. Utila, Honduras
Beloved for its snorkeling, scuba diving, water sports, and whale shark watching, Utila is a hot spot for people who like to save a few bucks on their island vacation. In fact, Utila is known as one of the world’s cheapest (and best) places to go diving, which can cost as little as $50 per dive. Plus, it boasts easy access to the Mesoamerican reef system, the world’s second-largest barrier reef. This tiny bay island belongs to Honduras, which lies in the Caribbean.
There are plenty of options for apartment rentals ranging from $50 to $118 a night, or a stay at the highly-rated Manurii Boutique Hotel will cost about $134 per night. As for food, Blue Bayou Beach Bar offers fab views, drinks, and snacks for between $2 to $5. For a heartier meal, head to RJ’s Barbecue, which offers a BBQ plate with two sides and a drink for around $7. The cheapest way to get around the island is on foot, bicycle, or scooter.
9. Fiji, South Pacific
An archipelago of more than 330 lush islands in the South Pacific, Fiji is one of the best cheap places to travel if you want to experience five-star luxury on a budget. Backpackers and budget-conscious families are particularly fond of the Mamanuca Islands, which offer a variety of activities (like snorkeling, diving, paddle boarding, surfing, and sailing), top-notch resorts, and affordable accommodations.
Most of the budget-friendly hotels are on the larger islands of Viti Levu and Vanua Levu. These include the Outrigger Fiji Beach Resort on Viti Levu (for about $250 per night for a double room) or the fabulous family-run Palmlea Farms Lodge & Bures on Vanua Levu (for around $87). Nadi is home to the Budget Lodge, which can be as cheap as $42 per night. If you stay in Nadi, you’re sure to find something affordable to eat and sleep. Meals at the Noodle Canteen range from $2.50 to $7.10.
10. Roatán, Honduras
Another of the Bay Islands of Honduras, Roatán is a hot destination for divers and snorkelers due to its proximity to the Mesoamerican Barrier Reef System. Its idyllic sandy shores and lush hills make Roatán the perfect place to relax, soak up the sun, and enjoy the island’s pristine natural beauty. While this island is more touristy than Utila, it still offers plenty of options for budget travelers.
Stay in a well-reviewed guesthouse like Lawson Rock in Sandy Bay for about $50 a night or hit up Coconut Tree Resort in West End, where rooms cost around $105 per night. Roatán’s food is relatively inexpensive compared to other Caribbean destinations. Eat like a local at Anthony’s Chicken in West End Village, where you can enjoy a delicious meal for around $6. The cheapest way to get around is by colectivo, shared taxis that run fixed routes.
11. Gili Islands, Indonesia
The Gili Islands are a group of three tiny islands (Gili Trawangan, Gili Meno, and Gili Air) just off the northwest coast of Lombok, Indonesia. Known for their white sandy beaches, crystal-clear waters, and vibrant coral reefs, the Gili Islands are a haven for budget travelers seeking a laid-back, tropical vibe. These islands are a great place to snorkel, dive, or simply relax on the beach.
Accommodation options range from budget-friendly hostels to cozy beach bungalows. For example, you can stay at the Gili La Boheme Sister Hostel for about $10 a night or splurge a bit more for a private bungalow at Pondok Santi Estate on Gili Trawangan for around $120 per night. Meals are inexpensive, too. Enjoy a delicious plate of Nasi Goreng (Indonesian fried rice) for about $1.50 at a local warung (small restaurant).
12. Phú Quốc, Vietnam
Phú Quốc, an island off the coast of Cambodia, but belonging to Vietnam, is a budget-friendly paradise. The island is known for its stunning beaches, clear waters, and laid-back atmosphere. Phú Quốc’s National Park, a UNESCO Biosphere Reserve, offers a variety of outdoor activities, from hiking to bird watching, at no cost. The island’s night markets are perfect for sampling delicious street food and picking up affordable souvenirs.
Accommodation is cheap and plentiful, with options ranging from budget hostels to mid-range hotels. Stay at the Langchia Hostel for about $6 a night or enjoy a beachside bungalow at Phu House for around $35 per night. Street food is abundant and affordable, with dishes like Banh Mi (Vietnamese sandwich) costing as little as $1.50.
13. Hvar, Croatia
Hvar is one of Croatia’s most famous islands, known for its stunning landscapes, historic towns, and vibrant nightlife. While it can be pricier during the peak season, you can find great deals if you visit in the shoulder seasons (spring and fall). Explore the beautiful Old Town of Hvar, visit the historic Hvar Fortress, or take a boat trip to the nearby Pakleni Islands, all without breaking the bank.
Accommodations are varied, with options ranging from budget hostels to mid-range hotels. For example, you can stay at the Youth Hostel Villa Marija for about $25 a night or book a private room at the Apartments Pape for around $60 per night. Dining out can be affordable, especially if you stick to local konobas (traditional Croatian restaurants). Enjoy a delicious seafood risotto at Konoba Menego for around $15.
14. Koh Rong, Cambodia
Koh Rong is an idyllic island off the coast of Cambodia, known for its white sandy beaches, turquoise waters, and vibrant nightlife. Despite its growing popularity, Koh Rong remains one of the most budget-friendly islands in Southeast Asia. Spend your days lounging on the beach, snorkeling, or exploring the island’s many hiking trails.
Accommodation options range from budget hostels to beachfront bungalows. Stay at the Happy Elephant Bungalows for about $15 a night or splurge on a private bungalow at the Tree House Bungalows for around $50 per night. Street food is cheap and delicious, with dishes like Amok (a traditional Cambodian curry) costing around $3.
15. Naxos, Greece
Naxos, the largest island in the Cyclades, is a less touristy and more affordable alternative to its famous neighbors, Santorini and Mykonos. Known for its stunning beaches, charming villages, and rich history, Naxos offers a perfect mix of relaxation and adventure. Visit the Temple of Apollo, explore the Old Town, or relax on one of the island’s beautiful beaches.
Accommodation options are plentiful and affordable, with budget-friendly hotels and guesthouses available. Stay at the Pension Stella for about $40 a night or book a room at the Katerina Roza Studios for around $60 per night. Dining out is also affordable, with many local tavernas offering delicious Greek dishes at reasonable prices. Enjoy a traditional Greek meal at To Elliniko for around $10.
16. Isla Mujeres, Mexico
Just a short ferry ride from Cancun, Isla Mujeres is a budget-friendly island paradise with stunning beaches, vibrant marine life, and a laid-back atmosphere. Spend your days lounging on Playa Norte, snorkeling at Garrafon Natural Reef Park, or exploring the island by golf cart.
Accommodation options range from budget hostels to mid-range hotels. Stay at the Poc Na Hostel for about $15 a night or enjoy a beachfront room at the Ixchel Beach Hotel for around $120 per night. Dining out is affordable, with many local eateries offering delicious Mexican dishes at reasonable prices. Enjoy a plate of fish tacos at La Lomita for around $6.
17. Ilha Grande, Brazil
Ilha Grande is a stunning island off the coast of Brazil, known for its lush rainforests, pristine beaches, and crystal-clear waters. The island is a haven for outdoor enthusiasts, offering a variety of activities such as hiking, snorkeling, and kayaking. Despite its popularity, Ilha Grande remains a budget-friendly destination.
Accommodation options range from budget hostels to cozy guesthouses. Stay at the Che Lagarto Hostel for about $15 a night or book a private room at the Pousada Naturalia for around $70 per night. Street food is abundant and affordable, with dishes like pastel (a Brazilian pastry) costing as little as $2.
18. Samos, Greece
Samos, an island in the eastern Aegean Sea, is a hidden gem known for its stunning beaches, charming villages, and rich history. The island is perfect for budget travelers, offering a variety of affordable accommodations, delicious local food, and plenty of free activities.
Stay at the Samos Bay Hotel for about $40 a night or book a room at the Ino Village Hotel for around $70 per night. Dining out is affordable, with many local tavernas offering delicious Greek dishes at reasonable prices. Enjoy a traditional Greek meal at Elia Restaurant for around $10. Explore the island’s beautiful beaches, visit the ancient ruins of Pythagorion, or hike the scenic trails of the Kerkis Mountain.
19. Palawan, Philippines
Palawan, an island province in the Philippines, is known for its stunning landscapes, crystal-clear waters, and vibrant marine life. Despite its growing popularity, Palawan remains a budget-friendly destination. Spend your days island hopping, snorkeling, or exploring the island’s many natural attractions.
Accommodation options range from budget hostels to mid-range hotels. Stay at the Outpost Beach Hostel for about $10 a night or enjoy a beachfront bungalow at the Daluyon Beach and Mountain Resort for around $100 per night. Street food is cheap and delicious, with dishes like Adobo (a Filipino stew) costing as little as $2.
20. Koh Tao, Thailand
Koh Tao, a small island in the Gulf of Thailand, is known for its stunning beaches, vibrant nightlife, and world-class diving. The island is a haven for budget travelers, offering a variety of affordable accommodations, delicious local food, and plenty of free activities.
Stay at the Good Dream Hostel for about $10 a night or book a private bungalow at the Simple Life Resort for around $50 per night. Street food is abundant and affordable, with dishes like Pad Thai costing as little as $2. Explore the island’s beautiful beaches, go snorkeling or diving, or hike the scenic trails for breathtaking views.