Don't be fooled in to thinking this just another poor South American capital. With the big moves in the Chilean currency, Santiago is far from a cheap tourist destination with prices rivaling those of New York or Los Angeles.

One recent phenomena that has taken hold since the big moves in the currency is the sudden appearance of large numbers of luxury and sports cars. Four years ago it was rare to see a Porche on the streets of Chile. However, now that the Peso buys more dollars the Luxury tax on cars of a little over 15,000,000 pesos does not kick in so easily. That $30,000 dollar car is not so out of reach.

Santiago still has big city problems. There is a large number of poor and working poor. There is also many drug and crime problems across Santiago. However, one distinguishing feature of Chile is that unlike its neighbors Peru and Argentina, there is a strong government social net and legal system. There are very few people in the 'rob or family does not eat' sort of desperate crime common to the rest of Latin America.

For the tourist looking to pinch pennies in Chile, our recommendation is to spend as few days as possible in Santiago. Chances are you will get a chance to see it, as the major international airport is Santiago; however, moving out to see the rest of Chile will save your travel budget.