| |
Israel Facts & Figures
History
General Information
Geography
Climate
Facility for Disabled
Health Care
Israel's Economy
Electrical Appliances
Leaving Israel
What to pack
Holy Land Biblical sites
Events in Israel
Israel Cities & Hotels
Make a Reservation
|
|
The Israeli economy is a success story. Even though it has hardly any natural resources, and in spite of the wars and the waves of immigration that have placed an enormous load on it, Israel is placed among the most prosperous countries in the world. Two of the reasons for Israel’s economical success are external aid, totaling some 100 billion dollars to date, and an educated work force.
Since its establishment, Israel’s exports have grown from some 30 million dollars a year to over 30 billion dollars a year. Over this period, many changes have occurred in the Israeli economy. In the beginning, the State’s main exports were citrus fruit, as well as processed diamonds and some industrial products. Today, on the other hand, most of its exports consist of the products of high-tech industries in diverse areas such as electronics, software, hardware, optics, communications and medical instrumentation.
In the course of time, Israel’s economical ideology has also changed. In the beginning, the economy was prominently centralist, characterized by much State involvement in economic activity. Following political change in 1977, Israel’s economical ideology changed and, since the 1980s, the governments of Israel have adopted a liberal economical policy.
The GDP of the Israeli economy is some 154 billion dollars (51st place in the world), while the GDP per person is some 22,944 dollars (44th place in the world). Its exports total some 42 billion dollars a year, while its imports total some 45 billion dollars a year. Its annual growth rate is about 5%, the inflation rate is around 2%, and the unemployment rate is 8.9%. The Israeli economy’s predominant sector is high-tech, which became the driving force behind the country’s economic growth in the 1990s. Other prominent sectors in the Israeli economy are phamaceuticals, chemicals, tourism, the military industry, the metal industry and polished diamonds.
Israeli Currency
The State of Israel’s currency is the New Israel Shekel (NIS) or shekel for short (pluralized as shkalim in Hebrew or shekels in English). There are 100 agorot (agora in singular) in each shekel. Bank notes are in denominations of NIS 20, 50, 100, and 200; coins are in denominations of NIS10, NIS5, NIS1 and 50, 10 and 5 agorot.
Changing Money
Unlimited sums of local and foreign money may be brought into Israel as cash, travelers’ checks, credit cards or State of Israel bonds. Foreign currency of all kinds may be exchanged at the airport, banks, post offices, most hotels or licensed exchange agencies in large cities. A passport is required when exchanging travelers’ checks. The rates vary from place to place, and banks charge a commission. 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. More Information is available here.
Cash Withdrawal
Holders of international credit cards can withdraw local or foreign currency at banks which accept their credit cards. There are Automated Teller Machines outside most banks.
Purchases and Payments
All goods and services may be purchased with the following currencies, which can be freely exchanged: Euro; Australian Dollar; US Dollar; Hong Kong Dollar; New Zealand Dollar; Singapore Dollar; Canadian Dollar; Japanese Yen; Danish Krone; Norwegian Krone; Swedish Krona; Pound Sterling; Swiss Franc; South African Rand. Nevertheless, storeowners and service providers are not required to accept foreign currency and are permitted to give change in shekels even if payment was made in foreign currency.
Tourists who pay for goods and services in foreign currency are exempt, in certain cases, from VAT (Value Added Tax). In addition, some businesses in Israel are registered with the Ministry of Tourism program for refunding tourist VAT payments. These merchants are required to inform their customers of this arrangement, and to provide them with an invoice which they must present at their point of departure from Israel together with their purchase in a sealed package. The VAT, less a commission, will be returned on the spot. Those departing from Haifa, Ashdod or Eilat will have the VAT returned to the address on the invoice. If the amount to be reimbursed exceeds $1,000, it will be sent after the invoice is verified with the tax authorities.
The minimum amount of purchase eligible for VAT refund is $100, including VAT. In Eilat, where VAT is not collected, the minimum purchase for VAT refund is $200, including VAT. The sale of jewelry whose shekel value equals $200, including VAT, will not be VAT-exempt.
Major credit cards – American Express, Diners, Visa, Mastercard/Access/Eurocard – are widely accepted in Israeli restaurants, stores, hotels, museums, etc.
Tips and Bargaining
In Israel it is customary to tip primarily in restaurants. When the bill does not include service, a 12% tip should be added to the payment. In hotels, one tips the bellhop or any other service provider. Taxi drivers are generally not tipped.
Bargaining is acceptable in Israel, but not everywhere. In the open-air markets, do not hesitate to bargain as it is part of the experience and doing so can lower the price. Storekeepers are legally required to display prices and for the most part are not open to bargaining. This is also true of restaurants and public transportation. Passengers are advised to ask cab drivers to turn on the meter, thus avoiding unnecessary haggling.
Banks
Various banks have branches in the large cities and in smaller communities. Most banks are open from 8:30am until 12 noon Sunday to Thursday, and 4–6pm on Sunday, Tuesday and Thursday. On Fridays and Jewish holiday eves, banks are open from 8:30am until 12 noon. All banks are closed on Shabbat. Most of the large hotels have banks which often offer additional, more convenient hours.
State of Israel Bonds
Tourists who have State of Israel Bonds – whether in their name or transferred to them – may redeem them at any bank prior to their date of maturity for full nominal value plus interest. Payment will be made in local currency up to the equivalent of US $2,500 per month.
Opening Bank Accounts
Tourists may open local currency accounts or special non-resident and foreign resident accounts at any bank.
Exchanging Shekalim for Foreign Currency
Shekels can be converted back to foreign currency at Ben Gurion Airport banks, up to US $500 or its equivalent in other currencies. Any remaining shekels over this amount that were acquired during a single visit to Israel (up to a maximum of US $5,000) can be reconverted with bank receipts proving the original conversion of the foreign currency.
|
