I have traveled to 18 countries across Asia, Middle East and Europe for the past three years and all those times, I just kept my passport with me. I put it in my handbag always and I have never experienced losing it.

I know of some of my colleagues who lost their passport when they have it placed in their handbags. What they did when they lost their passport was report to the police for record of the lost passport, report to their embassy and sought help.

Basically, it depends on the person. If you are the type who always lose anything when traveling, better keep it in the safety deposit box in your hotel but if you know you can take care of it even when you move from one place to another, then, keep it with you.