Popular Tropical Tourist Destinations That Accept The US Dollar Alongside Local Currency

Travel and money go hand in hand, especially if you're jetting off internationally. It starts with the big stuff — flights, hotels, rental cars, the whole shebang. But just when you think you've handled it all, you land and face the dreaded currency exchange dilemma. Doing it at an airport is a total waste of money due to the bad exchange rates, while ATMs come with the risk of frustrating scams, like skimmers. Thankfully, some countries, including a handful of tropical destinations in the Caribbean, Central America, and Southeast Asia, happily take U.S. dollars alongside their local currency.

As it turns out, a lot of places beyond U.S. territories like Puerto Rico and Guam are dollar-friendly thanks to a nifty little concept called dollarization. If you want to take a trip to the Bahamas, for instance, you have the option to use the local Bahamian dollar or your good 'ol greenback. The same goes for Caribbean nations like Barbados, Aruba, Curacao, Jamaica, Cayman Islands, Saint Kitts and Nevis, and Sint Maarten. Heading to Southeast Asia? Some countries will welcome your George Washingtons, too, allowing you to enjoy a stress-free beach vacation at places like the secluded Koh Tonsay in Cambodia, as the U.S. dollar is widely accepted alongside the riel. Vietnam and Myanmar are also dollar-happy, especially in tourist hotspots. And if the lush jungles and pristine beaches of Central America are calling your name, good news: Belize, Costa Rica, Honduras, and Nicaragua all welcome the dollar with open arms.

If you're wondering why these countries gladly accept U.S. dollars when they have their own currency, it usually boils down to their local money not being strong enough to keep the economy steady. "Countries typically choose dollarization due to a lack of confidence in their ability to manage their own currency effectively, often in response to economic instability or hyperinflation," Zac Mills, former World Bank economist, shared with Thrillist. "The U.S. dollar is considered one of the most stable and reliable currencies globally. Using it helps these territories avoid the volatility and instability that might come with managing a smaller, less liquid currency." Plus, since the dollar is the world's reserve currency, it's already familiar to everyone.

That said, each dollar-friendly country has its quirks. Take Cambodia, for example. Locals are apparently downright picky about the condition of U.S. bills and won't accept any that have tears or stains. Meanwhile, in Barbados, they'll happily take your dollars, but don't expect to always see them again as change. Instead, you might get Barbadian dollars back, whether you like it or not. Additionally, some places won't take your bills if they look dated.

So before you roll into a dollar-friendly destination thinking you're set, do a little research. Will they take your crumpled $20 bills? Are credit cards widely accepted? Or are you about to enter a cash-only nightmare? A bit of prep can save you from sticky situations at the register.