It's a skinny country, sandwiched between the Andes and the Pacific, but because of this slim location it has so much to do right on it's doorstep. Mountains, volcanoes, thermal pools, the great ocean. The southern end of the country is a maze of glaciers and fjords whereas the top is part of the driest desert on earth giving an amazing contrast to this land.
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Budget Accommodation in Chile
The cheapest option is a youth hostel, there are some run by the YHA and other independents including, in the summer holidays, in the schools in the main towns. Campsites tend to overcharge slightly unless there is a group of you, or you can free camp at service stations and youth hostels. There is a group called Rutacentros, running free campsites with shower and toilet facilities. If you can afford a little more there are some good bed and breakfast type accommodation available, it's still not deadly and you get a free meal.
A Traveler's Budget for Chile
Bus is the public transport of choice and is on the whole very good. Some companies let you book online in advance and some will carry bikes although there is usually an extra charge for this. There are some train routes in the south of the country, these are moderately priced but reasonably quick moving.
The general consensus is that hitching is pretty safe in Chile, but be aware, there are nutters in every corner of the world.
Eating cheaply is simple, most things are based on filling stews. There is home grown Chilean fast food as well, which is outdoing some of the big multinationals due to the vastly superior quality. Definitely worth investing a dollar or two. Restaurants offer cheaper meals at lunch time so you might want to do the majority of your refuelling then, and cheap snacks and supplies can be had from markets in the cities.
Activities for the Budget Traveller
Wine drinking in the central areas
Visit the many museums in Santiago
Climbing in the Andes
Trekking up volcanoes (check whether you have to cross a border)
Horseriding in the Elqui and Hurtado valleys
Mountain biking in the Lake District
