I awoke this morning to hear a story on National Public Radio about the financial crisis affecting certain Eastern European countries, especially Latvia, Hungary, and the Ukraine.

Edward Lucas, of The Economist magazine, pointed out that Latvia’s situation is pretty dire: a bank recently collapsed, the nation’s debt is swelling, and the country’s economy shrank by more than 10% in 2008. Furthermore, violent protests this year led to the collapse of the coalition government in February.

Difficult times

I noticed this myself last month, when I spent six days visiting Riga.

Of course, I mostly concerned myself with inspecting hotels and visiting the city’s historic sights. However, one couldn’t escape the signs of economic strain: I saw very few tourists (granted, it was early February), restaurants were empty (or closed), and prices were cheap.

Here was a city that poured millions of euros into reinventing itself as a magical, tourist-friendly destination–and hardly anyone was there. That wouldn’t normally be a major cause for concern in February. But this year was different. There seemed to be an uncertainty about whether or not tourists would return.

Across town, I visited beautiful hotels, freshly renovated (or newly constructed), often with sizable rooms and lovely bathrooms. Many sported eclectic, “boutique” decor. In almost any of the other cities we cover, these hotels would have been out of our Cheapo price range.

Yet, they were quite affordable in Riga. When I asked hotel owners for rates, they often frowned. Should they give me last summer’s rates? The off-season rates? What are this year’s rates? The prevailing attitude seemed to be, “we’ll see.” There was, after all, a big difference between the posted hotel rates and the bargain rates being offered online by the same hotels.

A great time to travel?

I found it all a bit unnerving. To encourage budget travelers to visit Latvia because of ever-discounted prices exploits a nation grappling with an economic crisis. Yet, tourism plays an incredibly important role in the nation’s economy, and it would follow that Latvia would benefit from an influx of tourists, eager to pump their euros (and lats) into the nation’s struggling economy.

Hotel owners, waitresses, the cashier at the opera… people were very friendly to me and seemed hopeful that more tourists would return to the city as the weather heats up.

Upon my return, I’ve raved about Riga. I had a great experience and found it fun, educational, delicious, and, yes, a bargain. Despite my sensitivities, I find myself bragging about what a good deal the city is for visitors.

And yet, I’m cautious when describing the budgetary benefits of visiting Riga.

Something strikes me as distasteful about choosing a destination based solely upon what you can “get” for your money. That may be a great way to purchase a beach resort getaway or a family cruise, but it strikes me as an un-thoughtful way to choose a travel destination.

Isn’t traveling about learning and experiencing? Doesn’t it call for a little more compassion and a little less consumption?

What do you think?

I’m eager to hear from our readers on this issue. Have you every traveled to a foreign country while they were experiencing difficulties? Did that affect your decision to go there? Would you consider going to a country with a shaky economy in order to stretch your travel budget?

Let us know in the comments section below.

For more information about Latvia’s financial troubles, also see an article in this week’s Der Spiegel (in English).

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A royal turkey spread, photo courtesy of RoadsidePictures

Sometimes you just can’t make it back to grandma’s house for Thanksgiving because you live (or are traveling) far, far away.

While a few Cheapos in our office were living in London the year before last, they had an admittedly hard time thinking about family back home, gathered around a table of carved turkey (or turducken), their aunt’s famous green bean casserole, and - especially - mom’s super-human homemade pecan pie.

Cue the drool!

Initially, these Cheapos thought about hosting a Thanksgiving feast at their flat, but didn’t find much in the way of Thanksgiving at Marks & Spencer. Instead, a restaurant in Notting Hill proved to be the right treat. The Cheapos gorged along with a packed house of other friendly American expats and had a happy, festive time.

While it could never be as good as grandma’s cooking, it sure tasted close to home. And while this year we’re all able to celebrate Thanksgiving with family, we thought it’d be helpful to round up a few suggestions for Americans abroad:

Paris
Join the Meetup Expats in Paris group for Thanksgiving dinner at Le Saint-Martin in the 10th arrondissement. Full details here.

Prague
Head over to the Radisson SAS Alcron Hotel and join the AARO (Association of American Residents Overseas) for a Thanksgiving meal. More information can be found here.

Brussels
A group of expats in Brussels will meet at the Sheraton Hotel, Place Rogier, for a meal on Thursday evening. Check out the American Club of Brussels calendar for more info.

London
If you plan to get meditative on turkey day, might we suggest the annual Thanksgiving service at St. Paul’s Cathedral. Folks in the local expat meetup group here meet at the cafe across the street first, to break bread beforehand.

Barcelona
The American Society of Barcelona hosts an annual dinner. This year, the event happens at the Hotel Arts (Pau Casals Room, Marina 19-21). Learn more here.

Rome
Friends in Rome hosts an event at Le Bain (Via delle Botteghe Oscure, 33). Reservations are required. To prepare for feasting, go here.

Budapest
Head over to the Budapest Marriott Hotel (Apáczai Csere János u. 4.) for a full spread. You can register when you get there. Or, try this guy; he’s willing to cook for your whole family!

OK Cheapos, now it’s your turn. Where will you be eating your European turkey and stuffin’ this Thanksgiving eve? Leave us a note here and we’ll pass it on.

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The 2007 Rubik’s Cube World Championship winner solved the puzzle in 12 seconds.

Not only is the “Rubik’s Cube,” invented by Hungarian Ern? Rubik, a global sensation, but it’s also a colorful and cheap souvenir. When in Budapest, we recommend picking up a couple cubes for the folks back home.

Solving the low-cost souvenir puzzle

Patented in Hungary in 1974, the Rubik’s Cube became a world-wide obsession within a few years. Today, puzzle aficionados can choose between numerous variations of the classic 3×3x3 cube, including a 2×2x2 Mini Cube, the 4×4x4 Rubik’s Revenge, and the 5×5x5 Professor’s Cube.

Not only do these puzzles makes great souvenirs, but they can also help pass untold hours on the metro, bus or tram rides while still visiting Budapest or during the long flight back home. All items sell locally for HUF 850 to HUF 3,300 (about €3.50 to €14).

Rubik’s inventions (and the knock-off key chains, pens and other trinkets) can be found in souvenir shops all over Budapest. We don’t recommend purchasing anything on the expensive Váci U. pedestrian street, where souvenirs can be up to five times more expensive than on nearby Rákóczi Út.

While you’re at it…

Tourists visiting Budapest already have a cheapo souvenir jingling in their pockets: the forint currency itself. Due to be replaced by the euro in 2013, forint coins can’t be cashed out at exchange centers, making them an appropriate—and unavoidable—souvenir.

Also see: Our guide to budget hotels in Budapest, more on the history of the Rubik’s Cube, and an attempt at a Rubik’s Cube Cake.

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Editor’s Note: In our “Checking In” series, we interview hotel and B&B proprietors about tips for visiting their city. Today we “check in” with Dr. Ryan James, who runs the BudaBaB, a bed and breakfast in Budapest, Hungary, with his partner Ron Schmitz. Dr. James is also the author of Frommer’s Budapest and the Best of Hungary (7th Edition).

EC: What’s the one thing you simply can’t leave Budapest without doing?

Budapest has a number of must-sees, but you simply cannot go home until you’ve been to Castle Hill and taken a dip in the thermal spas. The best of the spas for mixed groups is the Széchenyi. The others are for men only or women only depending on the day of the week. The Rudas baths are “women only” on Tuesdays and men on all other days.

EC: Where can I get a cheap and delicious meal in Budapest?

The best choice is Koleves Vendeglo (Stone Soup Guest Restaurant at Kazinczy u. 35, District 7). It is run by young Hungarians who have combined the visual appeal of the restaurant with excellent food and at reasonable prices. Another excellent option is the Old Amsterdam at Királyi Pál u. 14 (District 9) where, in spite of the name, the cuisine is definitively Hungarian. Reservations are recommended for both.

Also, for really cheap and good meals, but without any atmosphere, head over to Frici Papa located in District 5 (Király u. 55). Go for an early dinner as they run out of choices by 7 PM.

For more restaurant tips, check out Dr. James’ picks here.
 
EC: What’s your favorite FREE or cheap thing to do in Budapest?

My favorite free thing to do in Budapest is to roam Margaret Island. The island, ”Margit” in Hungarian, is an oasis in the city. It consists mainly of a park with plenty of space for walking, jogging, and biking. On the island, tourists can see the former home of Princess Margit, the remains of a convent where she was sent by her Father King Bela.

EC: What’s your best-kept Budapest secret?

It’s a museum that most tourists never find out about. The Miksa Roth Memorial House has a splendid collection of the stained glass and mosaics by the famous Hungarian artist who has had his work commissioned around the world. He is known for developing the technique of painting on glass. The museum is located at Nefelejc u. 26 (District 7), but it does not open until 2 PM and it’s closed on Mondays.
 
But, the real local secret - something even many locals are not aware of - are the “Stumble Stones” placed around the city. At various points, you will unexpectedly come across a gold square in the sidewalk. Inscribed within the square is a person’s name, the address where you are standing, the person’s former occupation, and dates.

These “stones” are remembrances poised in front of the last known residence of someone who was taken away and executed during the Holocaust. Only those with no known living relatives qualify for a stone, insuring that they are not forgotten. The dates on the stone are their birth and the date of execution.  Some stones are in front of empty lots where a building once existed, but is no longer. Stones have been placed on Raday u. (District 3) and Dohanyi u. (District 2) so far, but more will be added as donations are made.

About our contributor: Dr. Ryan James is the author of Frommer’s Budapest and the Best of Hungary (7th edition) and runs BudaBaB, a bed and breakfast in Budapest. Doubles at the BudaBaB run from €45-55. 

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Built in 1905, the Fisherman’s Bastion is a wide, turreted monument in the neo-Romanesque style of architecture. You can reach it by crossing over from the ‘Pest side of Budapest (where most budget hotels are) and walking up the impressive Castle Hill. It’s pretty easy to spot the Bastion, which used to mark the site of a medieval fishing market. Its giant, white set of cloistered buildings are strung together in what appears to be one long castle-like lighthouse.

While it costs 350 HUF (about $2.30) to reach the top tower of the Bastion and snap photos from the viewing platform, you can explore the rest of the mammoth monument for free—and the views are pretty much the same.

The whole thing looks like a medieval wonderland. Hungarians refer to the Bastion in their native tongue as, “Halaszbastya”. It was originally intended for basic decorative purposes, but was constructed in such a way as to encourage exploration by tourists and locals alike. Highlights of the view include St. Stephen’s Basilica, the Chain Bridge, Margeret Island, Parliament, and an unencumbered view of the Danube and all of ‘Pest across the way.

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Get more bang for your forint with our Cheapo-tested tips for a night out in Budapest. Kari Hoerchler, who recently prowled the city’s streets hunting down hotels for us, also found out how to have fun…

Start the night with a free drink.

A cheapo could get a jump start on the evening with a free drink at the Matyas’ wine fountain in the Labyrinth of Castle Hill. However, we found it more efficient and enjoyable to fork out the HUF 8000 (roughly €31) to sample over 50 wines at the House of Hungarian Wines above ground.

Get your restaurant row on.

Ramble on over to the Liszt ter, the veritable restaurant row of Budapest. People watching is free of charge, not to mention fun. And, frugal dining spots abound. A fresh variety of cocktails, sandwiches and salads are available at Café Vian. ‘Pest favorites, including goulash and fruit soup, are served at Menza (which also serves international fare, like pasta and salads). Both restaurants run a tab of about HUF 3,200 (almost €13) per person.

Hit up a club.

For a walk on the wild side, head over to Erzsebet ter to catch live acts and art at the underground Godor Club. Even if the place gets overcrowded with revelers, it’s still fun to check out the stage from the park above via a glass bottom fountain. When we were last in Budapest, we made a visit. Pints of beer were HUF 480 (just under €2) and entry was free.

The late night and early morning crowd pumps at Szóda. Not only is the design of this club chic, but the crowd is notoriously hip, making Szoda the perfect place to find out where the latest and greatest kerts (makeshift bars in the courtyards of abandoned buildings) can be found. The team behind Szoda are also behind several of the city’s speakeasies.

Sit back and relax.

For a more mellow mood, catch local and European art films at one of Budapest’s opulent, old movie houses. Urania National Movie Theatre was built in the 1890s. Plush velvet seats and gold vaulted ceilings trick the eyes into thinking one is spending the evening at the much more expensive opera house across town. Stop by the box office to find out which films have subtitles. Tickets run between HUF 890 and 990 (€3.50-4).

Kari Hoerchler is a budget traveler and science fiction novelist stationed on Planet Earth. Not only has Kari been a star contributor to EuroCheapo’s guide to Budapest, she has also recently been spotted under spotlights on small stages in New York coffeehouses telling tall tales of a tropical island—and future vacation hot spot—in the Bermuda Triangle. Book ahead.

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What are the Cheapos reading over lunch today? Here’s a quick Tuesday flip-through:

Flight Reading

When we can’t hop on a plane and jet to Europe, we tend to pick up a good read to quell the urge. So, we were happy to be reminded by The Intelligent Traveler that “The Best American Travel Writing”, 2007 edition, which hit bookstores last fall, is chock full of essays that will take you there.

Travel Gal Pals

We’re excited for the launch of Budget Travel’s new magazine, Girlfriend Getaways. The first issue is out on newsstands now and includes a cheeky article by Ann Hood about how she and a few friends went searching for George Clooney while visiting Italy’s Lake District. We tried to find George too, while at ITB Berlin. But, only got as far as this wax figurine.

Budapest Bets

Last week, Daily Candy emailed us about Budapest. Not only did they dish up ideas for where to get drinks, soak up the entertainment factor, and eat our hearts out, but they also recommend a few spas. Who wants to play chess in a sauna? We do!

Local Listings

We’re loving Olivia Giovetti’s (aka “High Culture on a Low Budget“) feature “Ask a Local.” This week, she asked Mike from Munich about his cheapest thrills and where he gets his doner kebab. We’ll definitely be following this series!

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Back in the day, it was fairly typical to see many old Hungarian men and woman hanging out well into the night at a traditional coffee house in Budapest. Ideas were discussed and many pastries were consumed.

Today, it’s hard to narrow in on some of these ancient gems (no, we’re not talking about the old men and women), but they do still exist. And, the best part? An old coffee house or confectionery in Budapest can make for a fantastic cheapo’s night out. For the price of a cup of coffee and a yummy confection, you’ll be stepping back in time, connecting with Hungarian culture and often hanging out in a lavish turn-of-the-century building.

Here are five of our favorites:

1) Angelika

I. Batthyany ter 7

Open: Monday through Wednesday and on Sundays from 9 am to midnight; Thursday to Saturday from 9 am to 2 am

If the stained-glass windows, vaulted cielings and views of the Danube don’t draw you in, then the unique origin of this coffee house surely will. The Angelika, aptly named, sits inside the former crypt of St. Anne’s Church. Be sure to check out all the fabulous Buda ladies, who tend to sit here for hours sipping on the first-rate hot tea and engaging in conversation.

2) Muvesz Café
VI., Andrassy ut 29

Open: Daily from 9 am to midnight

This is a good bet if you’re planning a longer evening out as it’s one of the few old coffee houses that stays open late. They serve lots of yummy cakes and sandwiches. The décor is late 19th-century. Now, we admit, this isn’t one of the cheaper haunts, but if you want to feel like you’re in a legitimate establishment, Muvesz delivers. Look for ladies in fur hats.

3) Lukács ConfectioneryVI., Andrassy ut 70

Open: Monday through Friday from 9 am to 8 pm and weekends from 10 am to 8 pm

For years, this confectionery was a meeting place for the secret Hungarian police and served as a bank too. Today, it maintains that somewhat buttoned-up, underground vibe. You walk in through the old bank entrance and can even order a cake called the “bankar”. Lots of waitresses in fancy uniforms, pretty carpets and a huge dessert display make for fun distractions.

4) Ruszwurm <I, Szentharomsag ter 7

Open: Daily from 10 am to 8 pm (though we’ve known them to close at 7 pm if they aren’t busy)

Smack dab in the middle of the castle disctrict, this is a true example of a smallish old Baroque coffee house. It opened in 1824. Spend the evening wandering the district’s grounds and then stop in—if you can nab a seat (this place gets packed, especially in summer months). Let yourself eat cake here.

5) Gerbeaud Confectionery
V., Vorosmarty ter 7 (just off Vorosmarty Square)

Founded in 1858, Gerbeaud still has all its charm. Crystal chandeliers hang above the crowds (the Gerbeaud can hold 300 guests at one time) and pastries are of both Hungarian and Viennese origin. Try the cognac cherry cake, a concoction by former owner Emil Gerbeaud. And, if you’re tired of tourists, you can always skip the hubbub at Gerbeaud and head around the corner to Kis Gerbeaud (”Little Gerbaud”) which has cheaper pastries and less flash.

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A few food-related articles and posts that have caught our eye over the last few days…

1. Kevin Gould’s “Eat like a local…” Budapest feature in last Saturday’s Guardian. Mmmm, coffee and cake, and lots of it.

2. In the Telegraph, Gill Charlton’s guide to Naples, with its mention of ultracheap, ultradelicious pizzeria Vesi.

3. David Lebovitz’s France archive.

4. Nordljus’s riveting images of Istanbul, many of which are of things to eat.

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Photo by Salsano

Do something in Budapest that will be unforgettable and likely much cheaper than it would be at home—an organized afternoon at the horse races, through Budapest Tours.

For HUF8000 (€32; $43) your own personal guide will welcome you with drinks, introduce you to the history of horse-racing in Hungary and the rules of betting, and show you all the behind the scenes preparations for the race. You will be given some racing tips and two coupons for betting on the filly of your choice. Then you can cheer on your fancy in the race itself.

All in all a winning day, even if your horse isn’t first past the post.

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