Only one point on which I differ: often politically unstable countries are MORE expensive than places which receive many tourists.

Cheap prices for tourists depend on many factors: key is competition at a local level, a variety of locally-produced goods, and a reasonable transport network to get items like fresh water and produce from one place to another.

I live in Cambodia and prices here are a good deal higher than in Vietnam and Thailand. Part of it is we’ve fewer tourists, but the main reason is there’s simply very little large-scale industry here, aside from garment factories. There’s not much foreign investment as few people trust this particularly corrupt government. Most items are imported so are stuck with a hefty import tax – aside from those smuggled by kids into Poipet and by container into Koh Kong from Thailand.

Accommodation tends to be more expensive as well.