When traveling, tourists often expect to pay more than locals, whether it’s through higher entry fees, inflated taxi fares, or “foreigner prices” at markets. But in some unique places around the world, the opposite happens—foreigners actually get better deals than the locals. These unusual cases are usually the result of government policies, economic strategies, or efforts to encourage tourism.
Here are some destinations where being a foreign traveler can unexpectedly work in your favor.
1. Egypt – Subsidized Fuel for Tourists
In Egypt, gasoline prices are heavily subsidized, making transportation costs lower for everyone. But in certain cases, foreign tourists benefit even more. Some rental car services and transportation companies offer fixed, government-backed fuel prices that are cheaper than what many locals pay on the black market. Additionally, foreign visitors paying in U.S. dollars or euros may find better exchange rates than the official ones available to locals, effectively giving them more purchasing power.
2. Venezuela – Hotels and Flights at Black Market Exchange Rates
Due to Venezuela’s complex economic situation, there is often a huge gap between the official exchange rate and the black market rate for foreign currency. Tourists who exchange U.S. dollars informally can find themselves with significantly more Venezuelan bolívars than they would get through official banks. This means they can book hotels, flights, and even meals at luxury restaurants for a fraction of what locals would have to pay using the local currency at standard rates.
3. Argentina – The “Blue Dollar” Advantage
Argentina has long had a dual exchange rate system, where the “blue dollar” (an unofficial but widely accepted rate) offers much better conversion rates for foreign currency. Tourists who bring U.S. dollars in cash and exchange them through unofficial channels can effectively double their purchasing power compared to locals who must use the official exchange rate. This makes hotel stays, meals, and even high-end shopping significantly cheaper for foreigners than for many Argentinians.
4. North Korea – A Parallel Economy for Tourists
While North Korea is one of the world’s most closed-off nations, foreign visitors who are allowed in experience an entirely different economy than locals. Tourists usually pay in euros, U.S. dollars, or Chinese yuan, and they shop at specially designated stores where goods are often higher quality and relatively cheaper than what North Korean citizens have access to. In some cases, the difference in purchasing power means foreigners can access luxuries that remain unaffordable for the average local.
5. India – Tourist Train and Flight Discounts
While India is known for charging higher entry fees to foreigners at major tourist attractions, it also has some unexpected discounts. For example, airlines and railway companies sometimes offer foreign tourists special fares that, when converted to U.S. dollars, are actually cheaper than what locals pay in rupees due to fluctuating exchange rates. Additionally, foreign visitors often have access to tourist-specific discounts on domestic flights that aren’t available to Indian citizens.
6. The Maldives – Luxury at a Bargain for Foreigners
The Maldives is a dream destination for many travelers, but it operates under a two-tiered economic system. While luxury island resorts cater almost exclusively to foreigners at high prices, locals living on non-resort islands often pay much more for everyday goods and services due to import taxes and limited local production. Tourists staying in high-end resorts may actually find that certain goods, like alcohol and luxury foods, are more readily available and cheaper for them than for locals who face heavy import restrictions.
7. Cuba – The Convertible Peso System
Until recently, Cuba had a dual currency system: the Cuban peso (CUP), used by locals, and the Cuban convertible peso (CUC), used primarily by tourists. Foreigners paying in CUC often found themselves getting better quality goods and services than locals could afford with CUP. Even though Cuba officially unified its currency system in 2021, tourists who bring foreign cash (especially euros and Canadian dollars) can still access better exchange rates than what many Cubans receive for their salaries, making certain products and services cheaper for them.
8. Japan – Special Rail Passes for Foreigners Only
Japan’s famous Japan Rail Pass (JR Pass) is one of the best travel deals in the world—but only foreigners can buy it. While Japanese citizens must pay full fare for bullet train tickets, tourists can purchase multi-day rail passes at significantly discounted prices, allowing them to travel across the country for a fraction of the normal cost. This makes long-distance travel far more affordable for visitors than for locals, who don’t have access to these special tourist-only deals.
Why Do These Discounts Exist?
The reasons behind these unusual price advantages vary:
- Government Policies: Some countries use special exchange rates or subsidies to attract foreign travelers and encourage tourism spending.
- Economic Instability: In places with high inflation or currency fluctuations, foreigners often end up with better purchasing power.
- Tourist Incentives: Certain countries offer discounts on transport, attractions, or accommodations to encourage international visitors while keeping prices stable for locals.
- Parallel Economies: Countries with dual-currency systems or restricted markets sometimes create situations where tourists have access to better prices or quality products.
While most travelers are used to paying a “tourist tax” in popular destinations, these unique cases show that sometimes, being a foreigner can actually save you money. Whether it’s cheaper transport, better exchange rates, or special discounts, these places turn the usual travel pricing dynamic upside down.
