Traveling abroad can be costly, but in 2025, one country stands out as the priciest for American tourists — Iceland.
Why Is Iceland So Expensive?
A new study by The Forex Complex found that Iceland is the most expensive popular travel destination in the world this year. The average cost of a trip to Iceland is over $400 per day. This high cost includes hotels, food, and transportation.
On top of that, Iceland’s inflation rate is 5.5%, which makes everything even more expensive.
What Makes It Costly?
Experts say that currency changes also play a big role. Even if prices stay the same in local currency, a weaker U.S. dollar can make a vacation more expensive. Tourists who ignore currency trends may find themselves paying more than expected.
Other Expensive Countries in 2025
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Australia: Ranked second with daily costs of around $280.
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Mexico: Came in third, mostly due to a stronger Mexican peso.
Even though some places in Europe have better exchange rates now, countries like the UK, Germany, and Italy are still in the top 10 because of their high daily costs.
Most Affordable Countries
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Thailand is the cheapest destination, with average daily costs of $81.87.
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Indonesia follows closely with just $70.23 per day, despite a small inflation rate.
How Was the List Made?
The Forex Complex ranked 19 countries by looking at:
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Daily costs (in U.S. dollars)
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Local inflation
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Changes in currency value
They added up the costs of hotels, transport, and meals to get a clear picture of travel expenses.
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