How to Travel Jerusalem on a Budget
Visiting Israel is often considered a once-in-a-lifetime experience. With its vibrant culture, deep historical roots, and stunning landscapes, it's easy to see why. But while countries in the Middle East like Jordan or Egypt may seem more budget-friendly on paper, don’t be too quick to count Israel out. With a bit of planning and the right strategies, traveling in Israel — and especially Jerusalem — can be done on a reasonable budget without missing out on the magic.
In this guide, we’ll walk you through how to enjoy Jerusalem affordably: from free attractions and low-cost meals to smart ways to get around and tips that can save you time and money.
Is Israel Expensive Compared to Its Neighbors?
Yes — and no. On average, Israel is more expensive than many other Middle Eastern destinations. Accommodation, food, and transportation costs can add up quickly, especially in cities like Tel Aviv and Jerusalem. However, the country offers plenty of opportunities for cost-conscious travelers.
Public infrastructure is excellent, street food is both delicious and cheap, and many of the most iconic attractions — especially in Jerusalem — are completely free. By approaching your trip with flexibility and an open mind, you’ll discover how much value you can squeeze from every shekel.
Affordable Places to Stay in Jerusalem
Accommodation in Jerusalem ranges from luxury hotels to budget hostels and guesthouses. If you’re looking to save money, the best place to start is with hostels. Dorm beds typically cost between $20-40 USD per night. Great options include The Post Hostel, just a short walk from the Old City, or Abraham Hostel, a favorite among backpackers for its social vibe and free events.
Airbnb also has plenty of options — shared rooms or private spaces in less touristy neighborhoods like Nachlaot or Arnona are often cheaper and offer a more local experience. For the truly adventurous, consider Couchsurfing or volunteer programs that offer lodging in exchange for a few hours of work per day.
Free Things to Do in Jerusalem
One of the best things about Jerusalem is that many of its top sights won’t cost you a thing. The Old City is a treasure trove of history and spirituality, and walking through its four quarters (Jewish, Christian, Muslim, and Armenian) is completely free.
You can visit the Western Wall, considered the holiest site in Judaism, at no cost. The Church of the Holy Sepulchre, site of Jesus’ crucifixion and resurrection, is open to the public and deeply moving, regardless of religious background.
Want a panoramic view of the city? Hike (or take a bus) to the Mount of Olives. You’ll get an unforgettable vista, especially at sunrise or sunset.
Other free options include exploring Mahane Yehuda Market, where you can soak in local life, or joining one of the tip-based walking tours that start daily near Jaffa Gate. While technically not free, these operate on a pay-what-you-want model and are perfect for budget-conscious travelers.
Getting Around Jerusalem on a Budget
Jerusalem has excellent public transport, and the key to saving money is getting a Rav-Kav card. This rechargeable smart card can be used on buses and the light rail. A day pass costs about ₪17.50 (around $6 USD) and gives you unlimited rides.
The light rail is a great way to get across town, especially to and from the central bus station, Mahane Yehuda Market, and the Old City. Buses are also reliable and run frequently — just be sure to check schedules ahead of time, especially around Shabbat (Friday evening to Saturday evening), when most public transport stops.
During Shabbat, your best option is a sherut — a shared minivan taxi that runs fixed routes and departs when full. They’re a little more expensive than buses but still cheaper than private taxis and a lifesaver when everything else shuts down.
And don’t underestimate walking! Jerusalem is a compact city, and many key sites are within a 20–30 minute walk of each other. Not only will you save money, but you’ll also stumble across places you might otherwise miss.
Where to Eat and Shop Without Breaking the Bank
Jerusalem’s street food scene is not just delicious — it’s budget-friendly too. For just ₪25–₪45 ($7–$14 USD), you can enjoy iconic local dishes like falafel, shawarma, sabich, or bourekas. Head to Mahane Yehuda Market for some of the best street food in the city. During the day, it's a bustling produce market with affordable fruits, pastries, and cheeses. At night, it transforms into a lively bar and street food scene.
If you have access to a kitchen, shopping at Rami Levy or Shufersal Deal supermarkets will save you a ton. Pick up essentials like hummus, pita, olives, and fresh veggies to make your own Israeli meals.
When it comes to souvenirs, head into the Old City markets, but be prepared to haggle — it’s part of the culture. Don’t accept the first price offered, and you might walk away with a great deal on spices, handmade crafts, or religious items.
Extra Budget Tips for Jerusalem
Avoid renting a car in Jerusalem. Parking is scarce and expensive, and traffic in the Old City is a maze. Public transport and walking are your best bets.
Download Moovit or Google Maps to navigate buses and light rail routes easily.
Bring a reusable water bottle — tap water in Israel is safe to drink, and you’ll save money and reduce plastic use.
Plan ahead for Shabbat. Stock up on groceries and know your transport options in advance.
Use a travel debit card to avoid ATM fees and bad exchange rates — cash is useful in markets and for sheruts, but most places accept cards.
