When you go to Jerusalem as a tourist

B"H

....you should definitely watch your money. Especially when you go to look for a hostel in the Old City.

Well, for Jewish tourists there is the free hostel called the Heritage House. The Heritage House is an orthodox hostel with a certain goal. They have an age limit accepting people which is around 30 years. Their main goal is to make you interested in Jewish orthodoxy and get you into programs of different yeshivot.

If you do not want to stay at the Heritage House or you are simply not Jewish, there are plent of hostels at the Yaffa Gate, the main entrance into the Old City. Just watch out as soon as you enter. Palestinian tour guides, some legal and some illegal, will immediately come up to you and try to get you into one of the nearby hostels. Be careful accepting their help, as you are being charged more by the hostel owners. The owner has to pay a commission to the guide and in the end you pay double. Just go by yourself and look for a hostel which isn't too difficult at all.

The other thing is that these tour guides also offer you tours through the Arab market (the shuk). If you choose to go with them, you will pay double as well. Every item you buy in shops the guide is getting commission for.

The best way is when you come and go everywhere on your own. Get "Lonely Planet" or some other book and discover Jerusalem on your own. It will be much cheaper and more interesting for you.

If you go to the Arab market just go into different stores and check prices. Never buy in the first store you see.