Australia: Unbelievably Expensive

[kjun]

Just returned from a visit to Australia and I cannot believe how expensive the country is. The

Aussie dollar is almost on par with the American dollar but the cost of things like food or rooms is overboard. $12 for a hamburger in a cafe. $100 for a room in a hostel. Hotels are out of sight. I came home early because I just could not justify the cost of staying longer.

[jimboivyo]

So, you left one of the most amazing countries in the world because you didn't do enough pre-research on prices and cost of visiting? Who does that?

[justaguy]

I agree with jimboi that research is essential to a good traveling experience so that you have a good idea how to budget. At the same time, I can sympathize with the feel of sticker shock.

[cany10011]

At one point in time...

 

Just returned from a visit to Australia and I cannot believe how expensive the country is. The

Aussie dollar is almost on par with the American dollar but the cost of things like food or rooms is overboard. $12 for a hamburger in a cafe. $100 for a room in a hostel. Hotels are out of sight. I came home early because I just could not justify the cost of staying longer.

 

...like 10 years ago, the Australian and Canadian dollars were only .65 cents to the US dollar. Was very good spending money at that time!

[Steven_Draker]

The Big Mac index

 

I guess it depends on one's POV. Prices and cost of living are relative. A guy living in Thailand wouldn't have the same opinion on prices in Australia as a Norwegian guy.

 

http://media.economist.com/images/images-magazine/2010/30/fn/201030fnc885.gif

 

http://www.oanda.com/currency/big-mac-index

[Karl-G]

Fascinating, Steven. Thank you.

[Guest alanm]

Just returned from a visit to Australia and I cannot believe how expensive the country is. The

Aussie dollar is almost on par with the American dollar but the cost of things like food or rooms is overboard. $12 for a hamburger in a cafe. $100 for a room in a hostel. Hotels are out of sight. I came home early because I just could not justify the cost of staying longer.

 

I visited Australia three times in the 1990s when the exchange rate was better. But, I very surprised that you left early despite the high prices. There are few countries more beautiful, with very friendly people (and not just to gays and lesbians). Those prices are comparable with some of the richer countries in Europe like Germany, France and the Netherlands. Did something happen, beyond the prices, that made you decide to leave?

[orbital sander]

What a shame that you had to leave an amazing place. I agree that anyone who travels should research costs if you are on a budget. I also find if you get away from the big cities that prices tend to come down to earth. I am sure that the tourist areas such as Ayers rock are inflated (as it has always been), but if funds are tight you can set up a budget. The mighty US Dollar is not as mighty as it used to be, we are going to have to get used to that, as it will most likely only get worse:( for the foreseeable future.

[Luv2play]

I think kjun's lament is peculiarly American in the sense that it is the US$ that has declined against many other currencies in the last 7 years. For those of us living in other countries, our stronger currencies vis-a-vis the greenback make for more affordable vacations in the US and enjoyment of other American goods and services at more reasonable prices to us.

 

The Big Mac index is interesting but how to explain Brazil's ranking right up there with the richest countries. Seems anomolous.

[+ purplekow]

The Big Mac index is interesting but how to explain Brazil's ranking right up there with the richest countries. Seems anomolous.

People are willing to pay for the fine Brazilian beef. As to the Big Mac, I havent a clue.

[KMEM]

I think kjun's lament is peculiarly American in the sense that it is the US$ that has declined against many other currencies in the last 7 years. For those of us living in other countries, our stronger currencies vis-a-vis the greenback make for more affordable vacations in the US and enjoyment of other American goods and services at more reasonable prices to us.

 

The Big Mac index is interesting but how to explain Brazil's ranking right up there with the richest countries. Seems anomolous.

 

I notice you are comparing "other" currencies with the USD. Until and unless that comes to an end I will have to think that what the USA says and does is "all important". Weak here and strong there, all relative terms and with the suggestion that "things" might or will change. Get a life, please.

 

Best regards,

KMEM

[Bart]

To be honest Luv2play hit the nail on the head with currency exchange being the issue. This is the year to hit Europe, especially countries in the Euro, although better last spring and early summer, still the exchange rate is the best it has been since shortly after the Euro came into being. This is why the US is catching up on the import/export short-fall. The fall of the dollar has made US exports much cheaper. So you picked the wrong year to travel to Austrailia and not the best for Canada.

That said I think the US dollar decline is not over. Even with a pick up in the economy, there are some serious IOU's sitting out there that is going to impact the dollar in 2011 without some big time cuts in gov't spending, like 25%. Dont want to go politics just if you want to travel this fall still Europe is not a bad destination, there are some great deals sitting out there.

[Luv2play]

. Get a life, please.

 

Best regards,

KMEM

 

Whatever do you mean by this? I have quite a nice life, thank you and don't need your gratuitous remarks. But who cares.

[MscleLovr]

I like Australia immensely and go there on vacation each year. The comment that it has become expensive is not misplaced. The currency is strong and local interest rates are rising, as the economy boomed throughout the recent global crisis and Australia had no recession.

 

I would point out, however, that the quality of food and produce is very high; and hotel rooms are large, and their prices (which include all taxes) are cheap compared to major European and US cities.

[jimboivyo]

Perhaps it's just another uninformed American tourist thinking he was in Rio or Bangkok. Aussie is a whole other animal, but a beautiful place to stay and see. Shame that more research wasn't done.

[+ glutes]

Research? Just look at the news!

 

SYDNEY (MarketWatch) -- The Australian dollar reached a level not seen for more than two years against the greenback on Wednesday. The Australian dollar reached a high of 95.64 U.S. cents early in the session, a level not seen for 26 months. The move followed Tuesday's comments from the U.S. Federal Reserve which said that it would provide additional measures to support the economy if needed, which sent the dollar sharply lower against major rivals.

 

http://www.marketwatch.com/story/australian-dollar-hits-26-month-high-vs-greenback-2010-09-21

[Diverdan]

A Different Opinion

 

I spent 10 days in Sydney in February of 2010. This was my 5th visit to Australia, and every time until now, I have enjoyed a remarkable exchange rate. This year, however the exchange rate was about on par, with a slight advantage to the US Dollar. However, I had a marvelous time. Used points from my frequent travels to stay in some very nice hotels, although in doing research for the trip, I found some wonderful bargins, in part because of the ability to pre-plan and pre-pay for rooms, which can be had at a signficant discount.

 

While food prices in restaurants are often comparable to the major cities of New York, Chicago and San Francisco, I found the quality, quantity and service to be equivalent and sometimes even better. The waiters/waitresses were exemplary and do not have the attitude that many similar workers have in the USA. I also found a number of "neighborhood" restaurants and bars to have relatively inexpensive meals. I often had two meals a day... a big breakfast and a more modest early dinner which helped my budget.

 

The Australian wine is fantastic, and equal to most of what is produced in Napa and Sonoma, but again at a somewhat lower price if you stayed away from the "big named wineries" that sell much of what they produce for the US and European markets.

 

Finally, there are a lot of relatively inexpensive places to go, things to see, and Australians LOVE Americans. I have found that true on every trip I have made down under. If you get outside Sydney, some of the other large cities such as Cairns, Melbourne and Adelaide are also a bit less expensive. And when it is winter in the US, you can't beat summer in Australia for many reasons, not least the eye candy on the Australian beaches and the friendly gays throughout the city.

 

I am sorry you had to cut short your vacation and that you had such a negative experience. Yours is not at all like mine was in February of this year or on any of my other trips Down Under.

 

Let's hope you are able to go back and have a better trip next time.

 

Dan

[Guest alanm]

 

Finally, there are a lot of relatively inexpensive places to go, things to see, and Australians LOVE Americans. I have found that true on every trip I have made down under. . And when it is winter in the US, you can't beat summer in Australia for many reasons, not least the eye candy on the Australian beaches and the friendly gays throughout the city.

 

 

As mentioned in an earlier post, I have been to Australia three times, always in their summer. I agree about how friendly Australians are to American. In Sydney in particular, I seldom had to plan the day. I would just have coffee, and inevitably meet someone who would tell me about an especially beautiful beach and how to get there by public transportation. I looked up one of the hotels I stayed in 1995 and 1998. The prices are certainly higher now, they are not yet what you would spend in most western European countries.

[kjun]

You guys, of course, have the right to call this any way you see it but the fact remains that Australia is EXPENSIVE! A hamburger in a cafe in the US does not cost $12. A room in a hostel is not $100. It does not cost $800 to drop a rented car in another city. On and on and on. It was the same in small towns as in the cities. Nothing was reasonable there except the countryside and the nice people.

[Diverdan]

One More Comment

 

I am not trying to deny your experience and hope you did not take it that way.

 

"Expensive" is a relative term, and I can tell you that Burgers at McDonalds and Burger King in Australia are not much more expensive than they are in the USA when you take the exchange rate into account. I also found that food, beer, wine and liquor in some of the smaller "gay oriented" bars and restaurants in Sydney were more reasonable than some of the "other neighborhood" cafes. I can probably take you to restaurants in Chicago, New York City, San Francisco, Tokyo, Hong Kong, Frankfurt, London, etc. where the burgers that are served there are also in the $12 range.

 

Again, please don't miss-understand me, as all I am trying to say is that "expense" is relative. I admit that I never stay in hostels. I do often stay in 4 and 5 star hotels and resorts, but I also stay in Hampton Inns, Holiday Inns and places that were probably a negative star!!!!

 

My first trip to Australia and New Zealand in 1993 was so inexpensive that I was almost embarassed. That was of course at the time that a US dollar was worth about 2 New Zealand dollars and one US dollar was worth about $1.5 dollars in Australian currency. So, as others have said, the cheap dollar results in many fellow citizens staying home or making significant changes in their travel plans.

 

Let me know the next time you want to go to Australia or New Zealand, and I'll try to give you some suggestions so you can enjoy your time without breaking your budget. As with most large US cities and areas of the country, prices are seasonally adjusted in Australia too, and that will make some difference in the prices, in addition to the exchange rate.

 

Again, I am sorry that you had to cut short your visit and that you had this experience. As someone who truly loves that country and has had such wonderful experiences there, I regret when others don't have the same experience I had.

 

Dan

[Guest ringtoss]

You guys, of course, have the right to call this any way you see it but the fact remains that Australia is EXPENSIVE! A hamburger in a cafe in the US does not cost $12. A room in a hostel is not $100. It does not cost $800 to drop a rented car in another city. On and on and on. It was the same in small towns as in the cities. Nothing was reasonable there except the countryside and the nice people.

 

You are right - Australia is expensive. My apartment in Oz rents for more per week than my sisters pays per month for her mortgage back in the states. My Range Rover Sport cost me double what my brother paid for his back in NY, not to mention the add'l luxury car tax I have to pay. I pay $1.259 a litre at the pump vs ~$2.70/gallon in the US. A 600ml diet coke at the petrol station is $3.80 - I can get it for a $1.25 at a gas station, and only a $1 if I was willing to shop around a little. A book I recently bought was priced at $55.95 - it retails for $24.95 in the US and just $16.99 on Amazon. And while none of that takes into account exchange rates, at .9547 (todays rate) they are practically equivalent. Some of the cost is attributable to the greater distance that things have to travel - but most is due to the outrageous government taxes and duties which help prop up local business. (Free trade - what a joke).

 

If you're currently living in Thailand, I can imagine the sticker shock from your perspective is even worse.

 

And FWIW - not everyone LOVES Americans here. When I lived in Manhattan, I always used to tell people that visited to just ask someone on the street for directions. "Are you kidding me?" they'd say, given NYC's reputation. "You'll be fine, as long as you start out with 'I'm visiting' or 'I'm not from NY'" I would always respond. New Yorkers (IME) would do anything to help out a tourist - just not another New Yorker. I'd say the same about Australians. Very friendly to tourists, but once they find out you live there - all bets are off and you start seeing some real impressions.

 

All that said - I still find it a great place to live. For people visiting - do your research. And be aware that they will jack the prices up - even at hostels - if there is any big event happening. Book in early to lock in prices... and even to just get the room! I learned that the hard way travelling to Uluru, when I almost got stuck putting four people in a hostel bunkbed room with communal showers. Only calling 5 times a day got me a last minute cancellation for a hotel room. My college buddies wouldn't care, but trust me - the relos do!