(Paul Sancya/Associated Press)

Hey, break out the bubbly – the Canadian dollar's stronger than it has been in decades.

Time to think about travelling to a place you haven't been able to afford before. Great idea, but do a reality check first. The loonie has taken off in comparison to the U.S. dollar in recent months, but both dollars have been anemic against many other currencies.

Even if you can find a cheap flight to Britain, try buying a latte in London or a scone in Scotland and you'll pay twice what you do in Canada if you're exchanging your Canadian loonies to British pounds.

The costs of staying, dining and shopping in the quintessential grand tour vacation spots in Europe like London, Paris and Rome have soared in the past year, while comparative prices in New York have tumbled, according to the latest cost of living index by Mercer Human Resources. Only Moscow tops London in costs and Seoul, South Korea, is not far behind. Even staying, dining and being entertained in Copenhagen or Oslo these days is almost as expensive as it is in Tokyo, which for years was the sticker-shock champion.

So where's the rising dollar still going to buy you more?

Consider these places where prices haven't kept pace:

• Bulgaria's capital, Sofia, is near the bottom of the Mercer cost-of-living list. The country remains a relative bargain, in part because although it has joined the European Union, it has yet to adopt the euro. Bulgaria still uses the thinly traded lev as its currency. New Western-style hotels are opening, and resorts on the Black Sea that once catered to Communist party cadres have been restored and are opening up at attractive prices.
• A similar situation exists in Romania, which is planning to adapt the euro in three years, but for the moment remains a relative bargain. Bucharest, the capital, has a Belle Époque charm and hotels are being upgraded because the country is being discovered by Europeans looking for bargain vacations.
• Turkey has become a much better deal this year because of fluctuations in the local currency, the lira, that meant its exchange rate fell by almost a quarter against the dollar. And because the country would very much like to join the European Union, the government is promoting tourist packages this year, and resorts around the country are offering specials.
• China is another good bet. As the Chinese resist revaluating the yuan, both the dollar and the euro buy a lot this year. Staying in a first-class hotel in Shanghai or Beijing is becoming more expensive as international chains compete to offer more amenities, but there are attractive deals in new tourist class hotels that are springing up in advance of the Olympic Games. And even gourmet cuisine is still affordable. Consider package trips visiting China's highlights or a cruise down the Yangtze River that are still inexpensive by world standards. A bonus: the shopping is amazing.
• Thailand has always been a travel bargain and there is more choice than ever this year thanks to a building boom in Bangkok and a proliferation of new resorts along the beaches of Phuket. But the country is not just about beaches. There's a strong Buddhist culture and beautiful temples to be seen everywhere. And the people are among the friendliest in the world, with ready smiles for everyone.
• Morocco has always been affordable and exotic but the comparative value of the Moroccan dirham (abbreviated MAD) has taken a dip, which means dollars go further. Tangier on the coast has attractive old souks (markets) and atmosphere ᡄ and hotels from about $70 a night. Casablanca is intriguing but more modern (Rick's Café is now just a bar in one of the chain hotels). A real treat when visiting Morocco is to stay in one of the walled villages. My favourite is a place called Taroudant, a brown-walled city situated between Agadir and Ouarzazate about 100 kilometres from Marrakesh. The countryside is desert but there are exciting throwbacks to yesteryear, including herds of camels, and goats that climb trees.
• Vietnam is coming alive. After years of relative isolation and development, it's taking off with international companies opening new hotels and resorts around the country, along with improved infrastructure to get to resort areas. One of the most up-and-coming areas is the China Beach zone near Danang, which has now become known as Sunrise Beach. As a bonus, you'll find staff who speak both English and French.
• Brazil was once a deal, but has become less so. According to Mercer's survey, Brazilian cities are the most expensive in Latin America due to a 20 per cent appreciation of the real to the dollar.
• Argentina Brazil's southern neighbour has become cheap by comparison, so Buenos Aires should be on your list of possibilities, with its European style and sophistication. And that can be the jumping-off point for beaches, ranches and wilderness adventures in Patagonia.
• Paraguay has the distinction of having the least expensive city globally ᡄ the landlocked country's capital, Asuncion. Paraguay has diverse wildlife and heritage sites that are little visited by tourists. However, cheap may not translate into an easy vacation because there is little tourist infrastructure.
• Costa Rica Long a favourite of Canadians, the Central American country comes in near the bottom of the cost-of-living tables. It's seeing substantial investment from international hotel companies and has become a tourism magnet for its rain forests and beaches.
• While Mexico City comes in moderately high in living costs, vacations in Mexico are still relative bargains ᡄ particularly if you look for all-inclusive resorts or private villas that are available for rent. Up-and-coming areas that are doing special promotions include Ixtapa-Zihuatanejo and Costa Maya area south of Cancun.
• But there's no need to go far afield when there are values to be had in your own back yard. U.S. shopping visits are back in fashion as the loonie and greenback get closer to equal in value. It's a dramatic change from five years ago, when the loonie was worth 62 cents in the United States. Canadian travel to the U.S. has grown 23 per cent since then, according to the U.S. Commerce Department. Hotels and resorts in border states are offering deals to attract Canadians.

And don't forget Canada. No hassles about foreign exchange and at least fewer problems with learning the local language.

By the way, Toronto ranks No. 47 on the Mercer cost-of-living charts, right between Dakar in Senegal and Jakarta, Indonesia. And Vancouver is slightly less expensive than Toronto, on a par with San Juan, Puerto Rico.

Wallace Immen is a Toronto-based world traveller who can't resist a bargain.

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