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Bali overtaken by Japan as Aussie holiday favourite, but one is much cheaper to travel to

The weak yen has made Japan a cheaper place to travel, but is it as budget-friendly as Bali?

Bali has long been Australia's top pick for international travel, but new data has revealed that our old favourite has now been unexpectedly dethroned by another Asian destination: Tokyo, Japan.

It's the first time in eight years the Indonesian island has been bested by another holiday hotspot as the most researched summer getaway, according to travel site Expedia, and it could come down to perceptions that it is now a cheaper spot to travel.

Australian Travel Industry Association CEO Dean Long said that aside from Australians escaping the heat, the yen being down had made Japan "slightly more affordable", however Bali has also decided to dump it's $50 entry fee so it's still in the affordability race.

Yahoo Finance has done a cost breakdown to show you which is the cheaper holiday destination.

Aerial shot of Tokyo, Japan, with Mt Fuji in the background; Aerial shot of Bali beach
Japan is more popular than ever with Aussies travellers, but can you afford to travel there instead of Bali? (Source: Getty)

Flights

A non-stop flight from Sydney to Bali - departing late January and including return trip - is currently going for as low as $525. A round-trip flight from Sydney to Tokyo for the same dates will set you back at least $1,897 for non-stop travel.

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Those prices come down a little bit if you're willing to add a couple of stops on your trip but, for the sake of comparison, we'll go with these numbers.

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Travel insurance

These flight costs don't include international travel insurance which, according to comparison website Finder, is pegged at an average of $235.37, as of September 2023.

Daily budget for Bali

Bali is known as a relatively cheap holiday destination, with the average tourist expecting to spend around $90 per day.

Accommodation can cost about $130 for a hotel per night. For single-room accommodation, this could average about $65 per night.

With an abundance of street food at your fingertips, you can eat very cheaply in Bali. According to travel website The Broke Backpacker, you could keep yourself happily fed for as little as $5-$10 a day. Restaurant meals are a little more expensive and can average $32.20.

Transportation to nearby shopping centres and tourist attractions can set you back around $14.18 per day or you could hire a scooter for as little as $2-$5 per day. A lot of visitors opt to keep costs low on their Bali trips by spending a good chunk of their holiday relaxing by the beach or pool at their villas.

Daily budget for Japan

How much money do you need to holiday in Japan? One person should expect to spend from about $47 to $81 per day, at least. These expenses can increase considerably during peak season and if you decide to use a Japan Rail pass to get around.

Accommodation in Japan can also vary depending on several factors, such as the number of nights, how many people, what kind of accommodation and its proximity to certain destinations. At a minimum, be prepared to part with at least $31 $52 per night for one person during the off-peak season. Again, this could increase considerably at certain times of the year.

When it comes to food, meals for one person can cost anything between $15.71 to $24.10 a day at least, from ready-to-eat meals that can be purchased at convenience stores, to fast-food restaurants like McDonald’s, and other restaurants that specialise in offerings such as curries and noodles.

Thankfully, Japan has many free attractions, which is really good news for travellers on a tight budget. Most shrines and temples don't charge admission fees and some museums charge no admission fees on one day of a week or month.

Travelling around Japan used to be very affordable via a Japan Rail pass. But the cost of this recently jumped by 70 per cent. A 14-day pass - offering unlimited rail travel around the country - will now set you back $838. That's roughly $60 per day.

Thankfully, rail travel within most Japanese cities is a lot cheaper and, because most cities are very pedestrian-friendly, you can get around for as little as $5 per day.

The verdict

Japan and Bali offer vastly different holiday experiences, which will appeal to different travellers in vastly different ways. One thing is clear though: you can do Bali on a much smaller budget.

Conversion rates correct at time of publication and may vary as the dollar fluctuates.

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