When I stayed in Playa Del Carmen for two months during the COVID-19 pandemic, there was one question I kept asking my local Mexican friends: If you were to recommend one place in Mexico to explore at least once, where would you send me? Every one of them said Oaxaca. I’d always wanted to visit Oaxaca, but budget travel can often be a challenge, especially when you have to factor in arriving from Canada.
But the first night I arrived there in February 2023, I found out what made it so special. I stumbled upon a wedding in front of Santo Domingo church. But it wasn’t like any ceremony I’ve ever attended. Dancing in the streets. The colorful outfits everyone part of the wedding party wore. There were Mojigangas and other creative displays of expression. Happy people that got me to join their wedding festivities. I was a sweaty backpacker experiencing Oaxaca magic for the first time and the whole experience felt so magical.
I could spend months there without getting bored. But can you do Oaxaca right on a budget? Passing through it on my latest backpacking trip, the answer is yes.
Why stay in a hostel when you’re in Oaxaca?
I’ve had wonderful experiences staying at hostels during trips to Europe, and my stay at the one I went to in Oaxaca was also positive. If you’re on a budget, it can be a smart decision.
I know myself well: all I need is a bed to sleep on, a locker to leave my valuables in and a bathroom. A hostel environment is perfect for me. I’d rather pay significantly less for the basics than triple the amount for a five-star hotel. And despite whatever scary stories may float around about hostels, they really are just cheap hotels.
The highly rated ones on Hostelworld are clean and made me feel at home. In the three days I stayed at Casa Angel, I met new friends from all over the world and had access to guided tours in Hierve el Agua, Monte Albán, a mezcal distillery and Mitla. I also got a better rate for these day trips because I booked the tours at my hostel.
This is something I learned in Barcelona, but it also applies here in Oaxaca: don’t buy tours online if you can get them in person. Booking sites tend to take a 20 to 30 percent cut from all sales, which hurts local vendors. This model also makes booking online more expensive.
But sometimes, staying in a hostel full of travelers who are seeking experiences and friendship can lead to becoming part of what feels like a strong family unit. The next thing you know, you’re hustling to sightsee with a group and cutting even more costs.
That’s what happened to me on my Oaxaca trip: I met three new friends and we went to Monte Albán together. No tour guide. No plan. We just bought a bus ticket and winged it. But we had an incredible time getting to know each other, taking pictures and imagining what Monte Albán might’ve been like before the Spanish arrived.
How can you eat on a budget in Oaxaca?
Eating for a reasonable price can be tricky if you don’t know how Mexico works and only stay in tourist-friendly zones. Hostesses standing outside their restaurants will try to tempt you inside for dinner. I’ve eaten at some of these places in Oaxaca and they can be hit or miss. What’s more, food at a tourist restaurant usually costs the same as it would in Canada.
How did I make sure I found the best food stalls? Well, I always keep this in the back of my mind: Tourist traps have gringo prices and hole-in-the-wall places you almost miss have local prices.
I’ve learned to identify several clues at Mexican restaurants to know the difference. The clientele, a small menu, limited seating, fair prices and salsa music playing in the background are a great start to coming across your new favorite taquería.
But in my experience, the two biggest signs are this: Coca-Cola or Pepsi chairs and how the restaurant staff greets you when you walk in. I don’t know what it is, but the best Mexican spots I’ve been to have that decor. And if the staff greets you in Spanish and only changes to English after, you know it’s a place that serves primarily locals.
I had the best memelas in my life at a hole-in-the-wall place I discovered in Oaxaca called simply Memelas & Quesadillas. It was 25 pesos per serving, and roughly 10 to 20 pesos for a drink of your choice. Not too bad.
Another effective way to eat on a budget is by stocking up on snacks at a convenience store like Oxxo. It’s often the first thing I do when I land in Mexico. I get cookies, crackers, water bottles, yogurt and sometimes even fruit.
Combined with seeking local establishments, my new friends and I had more money to spend on climbing the steps of Monte Albán and getting lost hiking in Hierve el Agua looking for frozen waterfalls.
Walking tours are your best friend
Of course, free is better than cheap when you’re on a budget. And since Oaxaca is one of those special cities in the world best explored by foot, there are many free walking tours you can do. The local guide at my hostel showed us around Oaxaca while also giving us brief history lessons on all the notable landmarks we reached.
We learned on our tour that it’s believed the Zapotec people covered Monte Albán in vegetation to hide it from the Spanish. We also got to see cool street art and an epic statue of Benito Juárez pointing towards the mountains.
We visited the church of Santo Domingo, which was free to enter. The murals on the walls and ceiling were just as picturesque as the ones I’ve seen in Europe. There also happened to be a little parade on the street close by and a kind lady gave me a hat.
Next thing I knew, half the day was gone and our guide took us to eat lunch. By the time I was enjoying memelas with my tour group, I felt like I really got to know Oaxaca in a way that was intimate and raw.
Meet me in Oaxaca for 2025?
All things considered, Oaxaca is possible to explore on the cheap. If I add up my expenses from my hostel stay, tours and food, I spent roughly 4,000 pesos in three days. So, have you ever done Oaxaca or anywhere else in Mexico on a budget?
Ian Ostroff is an indie author, journalist and copywriter from Montreal, Canada. You can find his work in various outlets, including Map Happy and The Suburban. When he’s not writing, you can find Ian at the gym, a café or anywhere within Mexico visiting family and friends.
