Although Colombia is a great tourist destination with several attractions that showcase tremendous wealth, it is not a rich country. Unlike in wealthier countries like the United States, the average wage in Colombia falls within the low to moderate income range. Now you probably figured that out already, but the fact is still worth mentioning. Average wages in Colombia are low, but they may be even lower than you think. As a tourist, this fact does affect you.
2 Reasons Why are Wages So Low
These are two major factors that contribute to the country’s lower-than-expected wages:
Economic Structure
While the structure of Colombia’s economy is growing, it is still heavily reliant on informal labor. There is limited industrialization in the country and a heavy dependence on service-oriented jobs, employment opportunities that although create jobs, only provide low income.
Low Alternative, High Competition
Colombia has a high population with lots of job seekers. This means there are always a ton of people competing for the limited job opportunities in the market. This gives employers an opportunity to offer lower wages because the workers have fewer alternatives and a lot of competitors looking to take their spot.
What is the Average Wage in Colombia?
According to a cost of living stat presented by Numbeo, the average monthly salary (after tax) in Colombia is about 1,611,170 COP. While this may seem like a lot when looking at just the numbers, that’s somewhere between $410 and $450. This means many Colombians live on an income that would be considered quite modest—or even below the poverty line—in wealthier countries. This has some implications for tourists.
What it Means for Tourists
Because average wages in Colombia are so low—especially when compared to those from wealthier countries—the cost of living in these regions would also be relatively low in comparison with that of wealthier countries. This means tourists from wealthier countries can spend more freely in Colombia compared to their home country. Things like dining out, booking accommodations, or hiring local tour guides often feel very affordable, and a meal that might cost $30 in a country like the U.S. could cost only $5–$10 in Colombia.
With locals often earning so little, the sharp contrast in spending power between tourists and residents makes tourists targets for desperate or greedy locals who may be looking to score big. Tourists are often targets of scams, cons, and extortion because, at the back of every local’s mind, they know that what’s simply change to a tourist could literally pay for a full day’s work.