
Firstly, it makes it cheaper. Even just knowing some numbers and the phrase for 'too much' drastically improves your bargaining power.
Secondly, it's polite. You get treated much better and with less suspicion if you greet people pleasantly, and even if you can't then take the conversation much further, most would appreciate the effort.
Finally, it can lead to some amazing experiences. One such time was in Mexico, when a tour guide we'd been chatting to all day (in our best Spanish!) invited us all back to his house for a party he was hosting. The night included a feast of roast pig, bottles of local tequilla and an impromptu guitar session! We left later that evening, slightly worse for ware, having mixed with the locals and sampled something you can't easily find on the well trodden tourist path - an experience of true local life.
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