The Most Expensive Cities in the World for Travelers

If a high-end adventure is what you’re seeking when it’s safe to travel again, perhaps consider a trip to one of the most expensive cities in the world.

A new report from the Economist Intelligence Unit (EIU) found that three cities share the title — Paris, Zurich, and Hong Kong. The two European cities replaced Singapore and Osaka, who topped the ranking last year, alongside Hong Kong again, due to the increasing power of the euro and Swiss franc currencies.

The report ranks the cities based on factors like the cost of food, transport, clothes, and more. Changes are driven by the cost of living, but also by currency fluctuations in places around the world.

Singapore is now in fourth place, while Osaka dropped to fifth. Overall, the top 10 on the list is split between Europe, Asia, the United States, and the Middle East. Tel Aviv shares its ranking with Osaka, while Geneva and New York City are tied in seventh place. Los Angeles and Copenhagen share joint ninth, thus filling out the top 10.

Factors Influencing City Rankings

Different factors cause cities to end up on the list. Paris remains one of the most expensive places to live, as only alcohol, transport, and tobacco are cheaper than its European counterparts. Conversely, Copenhagen is expensive due to the high cost of transport, recreation, and personal care. It is important to note that Asian cities tend to be more expensive for buying groceries, while Tel Aviv is costly due to the price of buying and maintaining a car.

The pandemic has affected certain categories. For instance, the cost of high-demand products such as computers has risen in some countries, while the cost of low-demand products like clothes has dropped sharply. The EIU expects these trends to continue into the coming year.

“Many price-conscious consumers will prioritize spending on staples, home entertainment, and faster internet access,” said Upasana Dutt, head of Worldwide Cost of Living at The EIU. “Big-ticket items, as well as clothing and out-of-home recreation, will continue to struggle.”

Full Top 10 List of Expensive Cities

Here is the full top 10:
Zurich, Paris, and Hong Kong (1)
Singapore (4)
Geneva and Osaka (5)
Copenhagen and New York (7)
Tel Aviv and Los Angeles (9)

This article was first published on March 20, 2019 and updated on November 19, 2020.