Venice has a well-deserved reputation for being one of the most expensive cities in Italy, largely due to its unique geography which requires all goods—from fresh produce to construction materials—to be transported by boat. Tourist-heavy areas like St. Mark’s Square and the Rialto Bridge are notorious for "tourist traps" where a simple coffee at a table can cost upwards of €15-€20 due to "service" and "music" fees. However, Venice can be managed on a mid-range budget if you venture away from the main thoroughfares into neighborhoods like Cannaregio or Castello. In these areas, you can find bacari (traditional wine bars) serving cicchetti (Venetian tapas) for €2-€4 per piece, allowing for a delicious and affordable meal. Transportation is another significant expense; a single trip on a vaporetto (water bus) costs nearly €10, so purchasing a multi-day transit pass is essential for savings. While luxury hotels on the Grand Canal can cost thousands per night, staying in nearby Mestre or choosing smaller guesthouses can significantly lower your costs. Overall, Venice is pricey for the unprepared, but strategic dining and transport choices can make it comparable to other major European capitals.