The website Price of Travel, famous in the budget traveler scene, just recently published a list of the cheapest cities to travel for backpackers ("124 World cities by price: Backpacker Index for 2014"). This list shows Cuzco on position 23 with a required daily budget of US$ 27.03 for a dorm bed at a good and cheap hostel, 3 budget meals, 2 public transportation rides, 1 paid cultural attraction and 3 cheap beers while Lima can be found on position 34 worldwide with a required daily budget of US$ 31.30.

Even more amazing: on the "16 South America and Central America cities by price" list Cuzco ranks 3rd and Lima 5th.

According to above mentioned website backpackers have a wide choice of fairly priced accommodation options with a high standard in Cuzco. In addition food and drinks are quite cheap. While in Lima the really cheap hotels / hostels only offer very basic services and aren't in the safest neighborhoods, even in the trendy and touristy district of Miraflores budget travelers can find numerous really nice and affordable places to spend the night. And if you stay away from costly city tours and travel independently then most tourist attractions are free or very cheap.

For more tips on how to go easy on your budget when travelling in Peru, check out our Budget Travel in Peru page.