Belize: A Budget-Friendly Paradise

Belize is moderately priced as a tourist destination, but it is one of the most expensive countries in Central America. The small country relies heavily on imported goods, and there are limited budget accommodation options. Basic infrastructure can also make it hard to get excited about what you're spending your money on.

The average daily cost per person is $105, with $29 spent on meals, $21 on local transportation, and $93 on hotels. However, these prices can vary depending on travel style, speed, and other variables.

Compared to its neighbouring countries, Belize can be expensive. One source notes that they were spending what they'd expect to in the US. However, it is still cheaper than a trip to Europe or a US city.

Imported goods are expensive

Belize is a small country that relies on imported goods, which results in higher prices. The country's customs tariff is based on the Caribbean Community's (CARICOM) Common External Tariff (CET). Two main duties are applied to imported goods: the Import Duty and the Revenue Replacement Duty (RRD).

Import duties range from zero to 120%, with an average rate of 20% applied to commodities. Certain goods, such as automobiles, fresh peppers, pepper sauces, live animals, and boats, are subject to a 45% duty. Industrial products have an average import duty of 20%, but this may be higher for products of national interest or those protected for Belizean investment.

In addition to import duties, other taxes on imports include the General Sales Tax (GST) and the Environmental Tax. The GST is applied at a rate of 12.5% based on the customs value and other duties. The Environmental Tax is charged at a rate of 3% on all imports, excluding certain medicines and food items. Automobiles are subject to a higher rate of 2-5% depending on the type of vehicle.

The high import duties and taxes contribute to the overall cost of goods in Belize, making imported goods relatively expensive compared to neighbouring countries.

Furthermore, Belize's small domestic market, high-cost labour, and energy costs also contribute to the high cost of doing business in the country, which can result in higher prices for imported goods.

Basic infrastructure

Belize's infrastructure is poor and extremely limited. The country has only four major paved roadways: the Phillip Godson Highway, the George Price Highway, the Hummingbird Highway, and the Southern Highway. These two-lane highways are the only paved public roads in Belize, with other paved roads privately owned and maintained.

The road network in Belize was improved in the 1980s, but not enough to support significant growth in travel, tourism, and manufacturing. In 1998, a US$14.7 million renovation of the Southern Highway began, with an additional US$8.5 million allocated for the construction of a bypass road and two bridges in northern Belize.

Belize has 1,594 miles of roads, 303 of which are paved. Some roads, including major sections of highway, are vulnerable to damage or closure during the rainy season. The country also has a regular bus service to and from all main towns.

Belize has ten ports of entry, the largest of which is at Belize City. Nine major shipping lines run cargo services in and out of the city. The country's international airport, Philip Goldson International Airport, is served by three international carriers: American Airlines, Continental Airlines, and Grupo Taca.

The communications network in Belize is extensive. Belize Telecommunications, privatized between 1988 and 1992, operates the network and provides modern service to the entire country. Cell phone and internet use are on the rise, although internet services have historically been expensive.

Touristy areas are pricier

Tourist Areas are Pricier

Belize is a moderately priced destination to visit. It's about average with most other countries for travel costs. The prices for food, accommodation, and transportation are all fairly reasonable. However, within Central America, Belize is very expensive compared to other countries. It is in the top 10% of countries in Central America for its travel costs. There are only a few countries as expensive or more expensive than Belize in the region.

Belize is a small country that imports the vast majority of its goods, which results in higher prices. Basic infrastructure also makes it hard to get excited about what you’re spending your money on. The price of food in Belize is fairly steep and more in line with what you’d pay in the U.S., rather than neighbouring Mexico or Guatemala.

Belize is a popular tourist destination, and as with many tourist destinations, prices can be higher in these areas. The more touristy Ambergris Caye is generally more expensive than staying in San Pedro on the island, where you can minimise golf cart rental costs as you won’t need to drive around as much.

The most popular attractions in Belize include snorkelling the Belize Barrier Reef, visiting the ATM Cave, and exploring the ancient Mayan ruins of Xunantunich. These activities are packaged in tours, which can be costly. Many of Belize’s top attractions require a guide and cost around $60 for a half-day tour and over $100 for a full-day tour during the high season.

The most expensive time to visit Belize is between October and April. By travelling in the off-season, you can significantly reduce prices for accommodation and flights.

It's a pay to play destination

Belize is a beautiful destination, but it can be an expensive place to visit. While it may be cheap to get to Belize, with frequent and inexpensive flights from a variety of international airports, the costs can soon add up once you arrive.

Belize is often considered a ""pay to play" destination, meaning that while there are no significant stand-out expenses, there are also no free activities beyond lounging on the beach. Even then, to access some beaches, you may need to pay for a ferry. Any kind of excursion or tour will cost you, and these can soon add up to a significant sum. For example, a full day of snorkelling can cost upwards of $150 per day, and scuba diving is around $200 per day.

The cost of accommodation in Belize is also relatively high compared to neighbouring countries. While it is possible to find inexpensive rooms for around $40 per night, beachfront properties can cost around $100 per night. Eating in Belize can be very affordable, with a full lobster dinner costing between $20-30 per person, and street food is also cheap and plentiful. However, these costs soon add up if you plan to stay for a week or more, and it is easy to end up spending hundreds of dollars per day for two people if you plan to do activities and eat well.

Overall, while Belize is a wonderful destination, it is important to be aware that it can be much more expensive than other Central American countries, and it is a good idea to budget accordingly.

The currency is confusing

Belize's currency situation is a little confusing, especially for tourists. The official currency is the Belize dollar (BZD), which is pegged to the US dollar at a rate of BZ$2 to US$1. This means that, in theory, you can use US dollars almost everywhere in Belize, and many businesses will accept them. However, there are a few things to be aware of.

Firstly, while the official exchange rate is BZ$2 to US$1, a lively parallel informal market usually gives BZ$2.05 for US$1. Secondly, while many businesses will accept US dollars, they may not give you a favourable exchange rate when depositing that money, so they may be reluctant to accept them. Finally, while you can use US dollars, it doesn't necessarily make sense to do so. BZ dollars are generally worthless outside of Belize, and the few places that might change them will offer little for them. Therefore, it is recommended that you exchange your money into BZ dollars while in Belize, and spend those instead.

How to Exchange Money in Belize

You can exchange currency at most banks and hotels in Belize, and ATMs usually accept foreign cards. However, there are some important things to be aware of. Belize law allows travelers to bring a maximum of US$5,000 into the country, and this amount must be declared on your Disembarkation Card. Failure to declare this amount could result in arrest and fines of triple the amount of undeclared funds.

Using Credit Cards in Belize

MasterCard, Visa, and AMEX are widely accepted in Belize, but it is always a good idea to carry some cash, too.

Frequently asked questions