Every year some think-tank or massive consultant firm juggles all manner of economic indicators to come up with data they use to rank world cities. These lists generate a lot of publicity for the bean counters who compile the final statistics, a kind of “hey, look what we can do with Google and Excel” moment in the mainstream press spotlight.
Take Swiss bank UBS for example. The financial services behemoth recently published results on the world’s most expensive cities. The amount of work that went into the actual findings is anyone’s guess. What the list did do however, was cause a lot of discussion and debate. One notable source of controversy was the fact that in these semi-annual rankings, UBS uses the U.S. dollar as the ultimate barometer of purchasing power.
Does it make sense to price a typical bundle of goods and services in Montreal and Manila the same way - with American greenbacks? The currency has taken a major beatdown of late, which when you think about it, skews the list. Are results a reflection of the poor U.S. dollar or other factors, or even both? Tough to say. So while reliance on one currency creates a level field of judgement, the results make it impossible to ascertain costs relative to median income in each city. This calls into question the relevance of the list to begin with.
Be that as it may, the fact we’re even engaged in a discussion about it means that UBS has won. We admit that despite the questionable methods employed by the Swiss bankers, it’s fun to analyze the results. So without further ado, here are The World’s Most Expensive Cities.
Anyone who travels regularly to the British capital and attempts to eat a half-decent pub meal knows how pricey London is in comparison to home. Skyrocketing property values however, are the chief culprit for why the city tops the list - again. Still, even a trip to Madame Tussauds will punish you at $90 for two tickets of admission. Talk about the whole ball of wax.
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Who would have thought life in placid Norway would be so expensive? Well again, it may not be so for Oslo residents who earn a decent median income. But try to pay for a pint of beer - apparently drugs are less expensive here than suds - and you’ll quickly understand.
Once the bane of Western Europe, the Irish economy has been on a wicked tear of late. Other than China and Dubai, there are more construction cranes here than anywhere else. With the boom and hip reputation however, have come high prices for basics.
The beer and sandwich barometer, what most tourists and backpackers use to measure how far cash will go, is off the charts in Copenhagen. The Danish capital is a gorgeous city, no doubt about it. But a simple lunch can set you back $20 easy.
The Big Apple, despite the woes of the U.S. economy at the time the list was compiled, is forever destined to be a mainstay when it comes to these types of rankings. So big, so cosmopolitan and with an economy that surpasses most countries, it would almost be weird if a carton of milk and box of cereal suddenly cost less than $10.
Stay in Manhattan for less than you would expect.
Even though Swiss bankers and economists were behind the list, they held their objectivity. The Swiss capital is a regular here and even though residents take home more pay relative to others after source deductions, goods and services are still comparatively high.
It’s not a huge stunner that Geneva trails Zurich. The quality of life in Switzerland consistently beats out all the competition but obviously, there’s a price to pay. Granted, that price is felt much more by tourists who have to convert foreign currency but still, try to rent a decent apartment here and you will feel the pinch.
The world’s most populated, crazy and frenetic metropolis is Tokyo and will remain so for decades if demographers have their way. While some intrepid souls report back that life here is actually, not as expensive as you would imagine, basic foodstuff, alcohol and entertainment - all things we enjoy when we travel - are out of sight. A movie, with snack and beverage, will set you back more than $30.
Scandinavia is notoriously expensive so no surprise that a third city from this part of Europe makes the cut. Helsinki is a dynamic, modern and wonderful place to discover but the usual suspects emerge as ludicrously overpriced here. Vodka, wine, a decent meal at a nice restaurant - these staples of a fun trip abroad will have you doing a double-take come check time.
The City of Lights is lights-out when it comes to prices. Though not nearly as bad as in years past, simple tourist attractions such as the Louvre cost $20 for basic admission. If you plan to spend the day there, which is a must, lunch will set you back another $25, not to mention the price of a Mona Lisa postcard at the souvenir shop. When you get back to your hotel room and crunch the numbers, you may have to kiss dinner at L’Atelier goodbye and forget the $40 entry fee to that cool jazz club in the Latin Quarter - not to mention the $20 drinks.
Want to bet which cities will top our list? Read on to find out.
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