Backpacking around the world is considered a rite of passage for many young Aussies as they step into adulthood. With limited funds and big dreams, many fresh-faced travellers make every dollar count by staying in dingy hostels, eating cup noodles and enduring 12-hour overnight buses. But what if you could stretch your cash without sacrificing the experience? A new report has uncovered the most budget-friendly backpacking destinations in Australia, and things are looking good for your bank account.
In its first-ever Backpacking Paradise Index, CupoNation used data from globally trusted sites like TripAdvisor, Numbeo and Smarttraveller to rank the ten most affordable destinations for Aussie travellers in 2025. They focused on destinations within an eight-hour direct flight from Australia’s busiest airports, examining currency exchange rates and the average cost of accommodation, flights, meals and transport, to determine where our dollar stretches the furthest.
With cheap flights, close proximity and easy Visa access, Asia has long been a popular destination for Aussie travellers. It’s also the most affordable, with eight out of the top ten destinations landing in the region. Kuala Lumpur took the top spot as the most budget-friendly backpacking destination for 2025, where travellers pay an average of $42.52 per night for accommodation, $6.96 for a meal and $1.04 for public transport. This vibrant melting pot of culture and adventure is super easy to reach with direct flights from Australia’s biggest capital cities – and it’s the perfect place to escape during our winter, with temperatures sitting at around 28 degrees Celsius in July and August – bliss!
It’s no secret that Aussies love Bali, so it’s a good thing that the Indonesian island is the second most affordable destination for backpackers in 2025. While accommodation is slightly higher at $44 per night, it offers the cheapest average meal price at just $2.90. Imagine all the nasi goreng, satay skewers and gado gado you could devour for less than $10. Often overlooked for Bali, Jakarta ranked as the third budget-friendly backpacking destination, with marginally higher prices for accommodation ($45.56), flights ($1,604) and meals ($3.87) than its Indonesian neighbour.
Australia’s love affair with Japan only seems to be growing in 2025, so we’re happy to see Osaka and Tokyo both secure spots in the top ten – ranking seventh and tenth, respectively. A meal in either city will set you back around $9.98, but when it comes to food options, you’re spoilt for choice. Osaka boasts 1,032 ‘cheap restaurants’ on Tripadvisor, while Tokyo takes the crown with a whopping 4,270 cheap dining venues – more than any other destination on the list.
New Zealand also made a strong showing, with Christchurch in sixth place and Wellington in ninth. While flights across the ditch are relatively cheaper than to some parts of Asia, the cost of meals and public transport is on par with Australia. You can find out more in the Backpacking Paradise Index here.
The top 10 budget-friendly backpacking destinations for Australians:
- Kuala Lumpur
- Denpasar (Bali)
- Jakarta
- Ho Chi Minh City
- Bangkok
- Christchurch
- Osaka
- Manila
- Wellington
- Tokyo