This Is the Most Expensive Country to Visit in 2025
Iceland is the most expensive destination for U.S. tourists in 2025, according to a study.
Iceland's high daily costs and high inflation rate contributed to the expense.
Australia and Mexico rounded out the top three most expensive tourist destinations for Americans.Traveling internationally can be pricey, but one European destination in particular tops the list for the most expensive in the world for Americans.
Iceland was named the most expensive popular tourism destination for 2025, according to a recent study by The Forex Complex shared with Travel + Leisure. The financial trading company evaluated 19 international destinations and found the average vacation cost in Iceland totaled more than $400 per day, the highest of any country included in the study.
In addition, the report noted Iceland's inflation rate is 5.5 percent, adding to the overall costs of hotels, food, and transport.
'Currency fluctuations can significantly reshape travel costs, even in countries with stable local prices. While daily expenses tend to dominate perceptions of affordability, shifts in exchange rates can quietly make or break a vacation budget for American tourists,' a spokesperson for The Forex Complex said in a statement shared with T+L. 'In 2025, travelers who overlook currency trends might be in for a costlier summer than expected.'
The second most-expensive destination was Australia where daily vacation expenses came in at around $280 per day. Inflation in Australia is relatively low—just 2.4 percent—but costs remain high.
Mexico came in third on the list in part due to a strong 6.4 percent increase in its currency (the Mexican peso) against the dollar. This adds to costs for American tourists and may offset the relatively inexpensive prices that would otherwise make Mexico a more budget-friendly destination.
Popular destinations for American tourists in Europe—like the United Kingdom, Germany, and Italy— now cost less thanks to more favorable exchange rates, but high daily prices still keep them in the top 10. (The UK came in at No. 8, Germany came in at No. 9, and Italy came in at No. 10.)
The least expensive destination included in the study was Thailand, which boasts an average per-day spend of just $81.87 and a weakened currency (the Thai baht) compared to the U.S. dollar. Indonesia was the second most-affordable thanks to a daily average cost of just $70.23, but hindered by its inflation rate of 1.95 percent.
To determine the results, the Forex Complex weighed three factors: the average daily tourism-related costs in U.S. dollars, the local inflation rate, and the year-to-year change in the destination's currency strength compared to the dollar. The study took into account several common expenses, including the cost of accommodations, transportation options, and the price of meals.
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