Why is Caracas the most expensive city?

It's certainly a surprise to see Venezuela's capital city, Caracas, ranked as the most expensive city for business travelers in the whole world. With an average cost of $611 per day it is significantly more expensive than Geneva ($547) the second most expensive city.

But when you dig a little deeper it's not as surprising as you would initially think. The Venezuelan government's strict price and exchange controls have seen costs in Caracas rise quickly, and the city has been included in the top 10 in many recent cost of living studies. For example, a survey released last year by ECA international listed Caracas as the most expensive city in the world for expats.

The price of food in Caracas is incredibly high. There is a thriving black market but the restaurants and supermarkets that business travelers have access to are among the most expensive in the world.

Venezuela is also one of the most dangerous countries in the world. Safety comes at a premium price. Businesses are unlikely to book staff into cheap accommodation in a city that has seen more murders than Baghdad each year since 2011.

There are a number of cheaper hotels in Caracas, but international visitors are strongly advised to stay away from them. Business travelers are extremely unlikely to check into these hotels, and for anything that even comes close to typical international standards they will have to spend a small fortune.