
In the 90's, sleeping accommodations in the Philippines were limited to renting rooms for the night. Your options were confined to finding cheap accommodation in your preferred tourist destination which normally starts in Manila because the city happens to be the take-off point to most places of interest.

Another good thing about traveling to the Philippines is the purchasing power of foreign-dominated notes. Your dollar or Brit pound or Euro or Yen can go a long LONG way.
The average conversions (depending on forex rates) are like:
• 1 US Dollar - PhP (Philippine Peso): PhP 48-50
• 1 Brit Pound - PhP: PhP 90+
• 1 Euro - PhP: PhP 65+
So for like, a thousand dollars, that's equivalent to about 48,000+ pesos (or Php 90,000+ if you use Brit pounds) can cover everything: from food to transports, to lodging and night life and souvenirs.
Language barriers are not a problem, if you know English. The country's long history of colonization produced modern-day Filipinos who are very comfortable with the English language. (The native language is also reached in Spanish-derived words.) You would be surprised that even the seemingly uneducated beggars on the street can converse with you in English. For the more adventurous ones, learning the language of the local which is Filipino, and the primary dialects Tagalog and Visaya may come in handy when huggling for the best deals in the course of your travel. It can be pretty difficult at first to learn. But if you're a veteran backpacker, you'll get the hang of it in a little time. Buying a phrasebook helps but it's very rare to find one about the Philippines.
Local transportation (that is, the obscure towns near the good sites and not the big cosmopolitan cities like Manila and Cebu) is cheap. For prices that range from 5 to 20 pesos, you can travel by tricycle (the Philippine version of Bangkok's 'tuk-tuk'), jeepney, or any local transport modes. Buses are cheap as well while taxis have relatively higher prices depending on their routes. Traveling from any of the major islands would mean taking an extra flight which can cost a bit for foreign tourists if you don't book your trip early. Two weeks planning, however, would help you secure the cheapest deal from Philippine Airlines' econolight fares. For those who prefer another mode of transpo apart from the planes, the ferry (one trusted carrier is Superferry) can also be an enjoyable experience. However, a tight schedule should propel a traveler to take domestic flights to be able to maximize your time in the country.

Common sense will also tell you that any streetwise backpacker will never show BLING. Dress down, chances are you'll fit in quite nicely. Also, it's always a big help if you smile most of the time. Filipinos are really true to form: hospitable and friendly. And then there are the rip-off artists and travel scams. Be cautious at the same time. Local customs such as a simple smile and thank you will help a lot.
Finally, the best thing to do when you come here would be to drink it all in. The sights are amazing and everything is just great.

(paraphrased and edited version of the post of J. Brent Esarza, 20 Feb 2005)
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