Hotel Rates Rise In Latin America Though it has no shortage of luxury accommodations, Latin America has long held a reputation as a place where budget travelers can pinch pennies. Times have changed. The average hotel rate in Mexico City, right, rose 30 percent in local currency last year, outpacing the rate of increase in 50 international cities including Dubai and New York, according to a report by the HRG travel management company. In fact, Latin American cities were among those with the highest percentage increase in room rates. It's not just because they started out low to begin with. Rio de Janeiro, whose average room rates were the fifth highest of all the cities included, had rates increase 15 percent and São Paulo, which ranked 15th most expensive, still saw its room rates shoot up 23 percent. The culprit, the report said, is the European debt crisis. Indeed average rates in Barcelona dipped 22 percent. So perhaps the cheapest way to experience Latin culture these days is to head east, not south.