Reverse Culture Shock : Prices

Surely, it isn’t the only aspect, and reverse culture shock keeps coming at me everytime I come back to Israel. Most things I can deal with, I just take a deep breath and find refuge in happy happy thoughts (:P), but it still surprises me everytime that I need to readjust to things I was adjusted to before.

I don’t know when and how it happened, but prices in Israel are absolutely insane, especially when compared to Taiwan. I’m trying to save my own face by telling myself I don’t care, but in the first couple of weeks of my return this is constantly on my mind in every step I take.

XE.COM says that 1 Israeli shekel is 9 Taiwan dollars.

I’m sitting in a Coffee Bean in Jerusalem’s down-town, if you can call it that, where the Ice Coffee I’m now drinking cost me 25 Shekels (225NT$). I came here after having a sandwich which was 22 Shekels (200NT$). Earlier today, I went to see a Chiropractor to take care of my broken body. It was an interesting session, with lots of twisting, pushing and electricity going through my body, all for the bargain price of 350 Shekels (3150NT$). Prices in Tel-Aviv are even higher. We all drive cars in Israel, very few use scooters, and I’m the same. Filling up my car, which I admit I missed but felt guilty driving with my increasing environmental awareness, I was utterly shocked to find out that 45 liters of petrol now cost over 300 Shekels (2700NT$). To watch a movie at the cinema – say goodbye to 40 Shekels (360NT$), and that’s before the popcorn for 20 shekels (180NT$) and drinks for 15 Shekels (150NT$).

Using the famous burger economy comparison I’ll fill you in that a burger meal at McDonalds in Israel costs around 40 Shekels (360NT$). Any business lunch in a decent place will start at 50-60 Shekels (450NT$). I tend to think that Diet Coke world comparisons are more accurate, and so a can of Diet Coke(330ml) would cost you 4.5-5 Shekels (40NT$).

The price for that exact same meal in Taiwan’s McDonalds would be 125-130NT$, and the price for that same Diet Coke can would be 18-20NT$. Ice Coffee at the most expensive Starbucks will bet around 120NT$, a really high quality Sandwich at Jamy’s around 150NT$. Movie will be around 190-250NT$. Between 30%-90% lower than Israeli prices. Insane.Yet we also have to consider the fact that Israeli salaries are much higher than those of Taiwan’s.

Just before leaving I remember having a discussion with a good Taiwanese friend who asked me – “You’re a business student, so explain this to me. You keep saying the Israeli and Taiwanese economies are about the same and that the Taiwanese economy is surprisingly strong, especially when considering Taiwan’s size. Then why, I really don’t understand, are the salaries here so much lower than that of Israel’s and Europe’s and how come the prices here are so low? How come tourists coming here can live like kings while I need to struggle every time I leave the country?”. The friend is absolutely right – I honestly don’t know how this situation came to be. Any economy finance experts out there?

It’s not only that Taiwan is relatively cheaper, it’s also that Israel has become relatively expensive. Since I’ve been in and out for almost 3 years now I maybe feel that more than others. It will definitely take some time getting used to.