My husband and I will be in Israel for two weeks in October. We are fairly seasoned, independent travelers, but this is our first trip to Israel; we will be on a group tour. When traveling in Europe we always use ATM's to obtain the local currency.

The tour coordinator has advised us that carrying shekels is not necessary - that everyone accepts US Dollars. We had planned to use ATM's to withdraw some funds to cover miscellaneous purchases (lunch, postcards, small items) and credit cards for sourvenirs, gifts, etc. I should point out that all breakfasts and dinners with wine are included in the tour.

What do you think? Should we go with the US dollars only plan or use an ATM? Many thanks in advance for your assistance.

This is right up there with the Fodors person who stated several years ago that all cabbies in Buenos Aires wanted single US dollar bills-yeah right.Always go with the
ATM's and get their currency-the people in other countries find it very difficult to exchange the US currency unless they have a regular banking place. The bank charges them a conversion rate-well,you get the picture.

A similar question was posted here about a month ago.
Click on "Israel and the Palestinian territories" to see the other post.
You are much much better off using an ATM to get shekels while in Israel. I'm sure you can estimate how much you need, and you can always spend the last few shekels at the airport when you leave.
Using US dollars will get you a really terrible exchange rate and or/odd looks. For Israelis, unless they are planning a trip to the US, dollars aren't useful since banks will either not exchange small bills for them or will charge a huge fee.

Thank you both for your replies. Confirms what we planned - use ATM's. I did find this on the GoIsrael website which is sponsored by the by the Ministry of Tourism:

"It is recommended, though not obligatory, to carry a small amount of US dollars, since certain tourist sites, especially in the Old City of Jerusalem, take payment in dollars".

Wonder why they want dollars?

Use the ATMs for local currency, even if some places might accept USD. As lunch will be on your own, they'd like their own currency or credit card. Do remember though if using credit cards, that 3% foreign currency exchange fee.

The ATM is your friend and with best exchange rate. No need to hit the hole in the wall daily; withdraw sufficient to hold you a few days. And, do verify with your local bank after you advise that you will be out of country, where and dates... if they assess fees for ATM withdrawlas and amount (can be flat rate or %).

I think the information on GoIsrael is a bit odd.
While I'm sure some vendors in the "shuk" will take dollars, they will also take shekels. Asian and European visitors aren't necessarily walking around with US dollars. I can't imagine what is meant by "certain tourist sites, especially in the Old City of Jerusalem"--perhaps a church? At any rate, shekels will be universally accepted and appreciated across the country, dollars not as much

If you want to change dollars to shekels, go to the many "Change Point" stores that charge no commission and offer good rates. Do not go to the banks.

" The tour coordinator has advised us that carrying shekels is not necessary - that everyone accepts US Dollars."

Bette, I hope that your tour coordiantor will give you more reliable advices and info while in Israel!

You should pay in shekels. If you don't use ATM, please follow the good advice of Mbgg and and change dollars at Change point stores.

Have a nice vacation in Israel !

yes i'm sure US$ will be accepted in souvenir shops in old jerusalem, this way, when bargaining, every 'unit' is about 4 shekels - very good for the merchants...

At the airport you will be told how much the ride is IN DOLLARS (if this is not included in the tour price). For your tour guide, it doesn't matter if you have dollars or shekels for tips.

For personal spending, like souvenirs, it differs. The price is in Shekels. You can offer dollars, but the conversion rate will not be in your interest. Some places display the price in US$, I think only some exempt religious organizations. In restaurants, credit cards are accepted.

You cannot use any ATM - I remember them being larger and smaller, only the larger ones take US ATM cards. Don't worry about the language - they switch to English automatically. If you see English on the display, you can use this ATM.

"Wonder why they want dollars?"

So they can give you a lousy rate of exchange and make some extra money. Just because someone is willing to take dollars doesn't mean that's a good thing for you.

Thank you all for the excellent and very helpful replies... I too am traveling to Israel for the first time in November this year, I would like to know what someone could share regarding traveler's checks there

I don't know of any place in the world where one can easily cash Traveler's Checks. I don't even know where to buy those anymore.

Traveler's checks are now relegated to being museum pieces - most people won't even know what they are if you try to use them - you can use credit cards almost everywhere in Israel and getting shekels from ATMs is the best bet and definitely easy - just make sure you are using a debit/ATM card, that you notify your bank that you will be traveling and that you use only bank ATMs and not free standing ones (they charge extra fees) - bank ATMs will be attached to a bank branch and in some other cases will be clearly marked with the bank name and logo.

Change places are also okay- just make sure to avoid the change place (and ATM) that is right inside the Jaffa Gate in Jerusalem on the left hand side - they have a long and varied history of ripping people off.

Thanks from me too, to everyone especially Oreet about the change place inside the Jaffa gate. Here in the U.S. the stand alone ATMs also are worse than the attached to a bank ATM as far as charges.
We'll be on our first trip to Israel at the end of October-November this year. Getting excited!