Israel’s official currency is the shekel (NIS). The currency chart below is based on August 2009 exchange rates between shekels and Australian dollars (AUS$), Canadian dollars (CDN$), European Union euro (EUR€), New Zealand dollars (NZ$), British pounds (UK£), and US dollars (US$). Check the currency converter on websites like www.xe.com or www.bloomberg.com for more info.
As a general rule, it’s cheaper to convert money in Israel than at home. While currency exchange will probably be available in your arrival airport, it’s wise to bring enough foreign currency to last for at least 24-72hr.
When changing money abroad, try to go only to banks or currency exchange shops that have at most a 5% margin between their buy and sell prices. Since you lose money with every transaction, it makes sense to convert large sums at one time (unless the currency is depreciating rapidly).
Traveler’s checks are one of the safest and most convenient means of carrying funds. American Express and Visa are the best-recognized brands. Many banks and agencies sell them for a small commission. Check issuers provide refunds if the checks are lost or stolen, and many provide additional services, such as toll-free refund hotlines abroad, emergency message services, and assistance with lost and stolen credit cards or passports. Traveler’s checks are readily accepted in unlimited amounts across Israel. Ask about toll-free refund hotlines and the location of refund centers when purchasing checks. Remember, too, always to carry emergency cash.
Where they are accepted, credit cards often offer superior exchange rates—up to 5% better than the retail rate used by banks and other currency-exchange establishments. Credit cards may also offer services such as insurance or emergency help and are sometimes required to reserve hotel rooms or rental cars. MasterCard and Visa are the most frequently accepted; American Express cards work at some ATMs and at AmEx offices and major airports.
The use of ATM cards is widespread in Israel. Depending on the system that your bank at home uses, you can most likely access your personal bank account from abroad. ATMs get the same wholesale exchange rate as credit cards, but there is often a limit on the amount of money you can withdraw per day (usually around US$500). There is also typically a surcharge of US$1-5 per withdrawal, so it pays to be efficient.
Debit cards are as convenient as credit cards but withdraw money directly from the holder’s checking account. A debit card can be used wherever its associated credit card company (usually MasterCard or Visa) is accepted.
The two major international money networks are MasterCard/Maestro/Cirrus (for ATM locations ☎+1-800-424-7787; www.mastercard.com) and Visa/PLUS (for ATM locations visit http://visa.via.infonow.net/locator/global/). Most ATMs charge a transaction fee that is paid to the bank that owns the ATM. It is a good idea to contact your bank or credit card company before going abroad; frequent charges in a foreign country can sometimes prompt a fraud alert, which will freeze your account.
If you run out of money while traveling, the easiest and cheapest solution is to have someone back home make a deposit to your bank account. Otherwise, consider one of the following options.
It is possible to arrange a bank money transfer, which means asking a bank back home to wire money to a bank in Israel. This is the cheapest way to transfer cash, but it’s also the slowest, usually taking several days or more. Note that some banks may only release your funds in local currency, potentially sticking you with a poor exchange rate; inquire about this in advance. Money transfer services like Western Union are faster and more convenient than bank transfers—but also much pricier. Western Union has many locations worldwide. To find one, visit www.westernunion.com or call in Australia ☎+64 1800 173 833, in Canada and the US +1-800-325-6000, in the UK +44 0800 735 1815, or in Israel +972 1 800 213 141. To wire money using a credit card, call in Canada and the US ☎+1-800-CALL-CASH, in the UK +44 0800 833 833.
In serious emergencies only, the US State Department will forward money within hours to the nearest consular office, which will then disburse it according to instructions for a US$30 fee. If you wish to use this service, you must contact the Overseas Citizens Services division of the US State Department (☎+1-202-501-4444, in US 888-407-4747).
The cost of your trip will vary considerably, depending on where you visit, how you travel, and where you stay. The most significant expenses will probably be your round-trip (return) airfare to Israel (see Getting to Israel: By Plane) and a bus pass.
To give you a general idea, a bare-bones day in Israel (camping or sleeping in hostels/guesthouses, buying food at supermarkets) would cost about US$40 (NIS157); a slightly more comfortable day (sleeping in hostels/guesthouses and the occasional budget hotel, eating one meal per day at a restaurant, going out at night) would cost US$60-90 (NIS236-354); and, for a luxurious day, the sky’s the limit. Don’t forget to factor in emergency reserve funds (at least US$200).
A 10% tip will generally suffice in Israel. Bargaining—although discouraged in department stores supermarkets, drug stores, and restaurants with full-priced menus—is extremely common, especially at markets.
Israel levies a VAT (Value Added Tax) of 15.5%, but it also offers a refund to tourists purchasing more than US$100 worth of goods at a shop approved by the Ministry of Tourism. To collect the refund, you must hold a foreign passport, be a non-Israeli citizen, and pay for your purchase in foreign currency (cash or international credit cards). Approved stores will be marked; look for the Ministry of Tourism insignia or a sign reading “VAT Refund.” In order to collect your refund, you will need to present a VAT receipt at the point of departure from Israel (if you are leaving from Ben-Gurion International Airport, go to the refund counter of Change Place Ltd.). Be sure to ask for the invoice and fill it out in the shop. Both your purchase and the invoice must be sealed in a bag at the shop and must remain sealed until your departure. Pack the sealed bag in your hand luggage, as you will need to present it for inspection. The official will stamp the invoice and refund the VAT in US dollars; if the bank cannot scrape together enough, the refund will be mailed to your home address. Eurocheques may be written in shekels and counted as foreign currency for discounts. The bank does charge a commission: US$2 on refunds of up to US$30; US$5 on refunds ranging from US$30 to US$100; and US$8 for refunds greater than US$100. If you leave Israel from a departure point other than Ben-Gurion Airport, the refund will be mailed to your foreign address with no charge. Note that no VAT is charged on items purchased in Eilat, which is a free trade zone. There is no VAT refund for the following items: food, drinks, tobacco products, electrical appliances, cameras, film or other photography equipment. For information on large purchases, consult the Ministry of Tourism.
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For 52 years, we have published the world’s favorite budget travel guides, written entirely by students and updated every year. With pen and notebook in hand and a few changes of underwear stuffed in our backpacks, we spend months roaming the globe in search of travel bargains.
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