The Traveler's Guide to Baksheesh: Handling Money and Tipping in Egypt

There’s a moment on every new adventure, usually right after you’ve stepped out of the airport, where the reality of being in a new country truly sinks in. The air smells different, the language flows around you in an unfamiliar rhythm, and you reach into your pocket for money. It’s that first transaction—for a taxi, a bottle of water, a small snack—that makes it all feel real. When I first traveled to Egypt, I had that exact moment, a mix of excitement and a healthy dose of, "Okay, how does this all work?"

Navigating currency and local customs is a huge part of traveling, and in Egypt, it’s an experience in itself. From understanding the value of the Egyptian Pound to mastering the cultural art of "baksheesh" (tipping), it can feel a little complex at first. But honestly, it’s one of the most direct ways to connect with the local culture and the incredibly hospitable Egyptian people. It’s not just about spending money; it’s about participating in a system of exchange and gratitude that is deeply woven into the fabric of daily life.

So, let's pull back the curtain. Forget any anxiety you might have about handling money. By the end of this, you'll be navigating the markets and cafes of Cairo and Luxor with the confidence of a seasoned traveler, ready to embrace every part of the experience.

Cash, Cards, and Currency: Your Financial Toolkit

First things first, let's talk about the official currency: the Egyptian Pound, or EGP. You'll see it written as LE (livre égyptienne) in many places, a holdover from the past. Before you go, it's a good idea to get familiar with what the bills look like. They come in denominations like 5, 10, 20, 50, 100, and 200 EGP. One of the most important pieces of advice I can give you is to always, always try to have small bills on hand. You will need them constantly for small purchases, and most importantly, for tipping.

While in the US we might be used to tapping our cards for nearly everything, in Egypt, cash is still very much king. For the vibrant chaos of the souks, the delicious street food, local taxis, and small shops, cash is not just preferred—it's often the only option. Trying to pay for a piece of street-side sugar cane juice with a credit card just isn't going to happen. Embracing the cash culture is part of the fun; it encourages you to engage with vendors and experience daily life on a local level.

That’s not to say your credit card is useless. Far from it. For larger expenses, your Visa or Mastercard will be your best friend. Most mid-range to high-end hotels, larger restaurants in tourist areas, and established tour companies will gladly accept them. Just be aware that American Express is less commonly accepted. A crucial tip: when you pay with a card, if the machine asks if you want to be charged in USD or EGP, always choose EGP. Your home bank will give you a much better exchange rate than the local machine's conversion. And, of course, give your bank a heads-up about your travel dates before you leave to avoid any frustrating card freezes.

The Art of Baksheesh: A Guide to Tipping

Now, for the topic that causes the most confusion: baksheesh. This is the Arabic word for tipping, but it encompasses so much more. It can be a tip for great service, a small token for a minor help (like someone pointing you in the right direction), or a form of almsgiving. For many in the service and tourism industry, baksheesh is not just a bonus; it's a vital and expected part of their income due to lower base wages. Understanding this changes your perspective from feeling hassled to feeling like you're participating in a fair, direct economic exchange.

So, how much is appropriate? For a meal at a restaurant, 10-15% is a good rule of thumb. If a service charge is already included on the bill, it's still customary to leave a smaller, additional cash tip directly for the server, as the service charge doesn't always go to them. For your tour guide, who is often the key to unlocking the country's history, around 150-200 EGP ($8-10 USD) per person for a full day is a generous gesture. For a driver who is with you for the day, about 100 EGP is standard.

The small tips are just as important. For hotel staff, consider 20-30 EGP for the bellhop who carries your bags and a similar amount left daily for housekeeping. Even the attendant in a public restroom will expect a small note, usually around 5 EGP. This is where having that stash of small bills becomes essential. Handing a tip directly to the person with a simple "shukran" (thank you) and a smile is the best way to do it. It’s a gesture of respect and appreciation that is always well-received.

Practical Advice for a Smooth Journey

Knowing the customs is half the battle; the other half is practical preparation. When it comes to getting your Egyptian Pounds, you have a few good options. ATMs are widely available in cities and are often the easiest way to get cash at a fair rate. Stick to ATMs attached to major banks like CIB or Banque Misr. It's wise to withdraw a decent amount at a time to minimize transaction fees from your home bank.

You can also exchange US dollars or Euros at official exchange bureaus (you'll need your passport) or at a bank. The rates are government-regulated, so they are generally fair. While you can exchange money at the airport upon arrival—and you should, to have enough for your visa and initial taxi ride—try to avoid exchanging large amounts at your hotel, as their rates are typically less favorable.

My final piece of advice is to keep your money in different places. Have a main wallet, but also keep a separate, easily accessible stash of small bills specifically for tipping. This saves you from flashing a large wad of cash every time you need to give a small tip. It’s a simple strategy that makes interactions smoother and safer. By thinking ahead just a little, you free yourself up to simply enjoy the incredible, overwhelming, and beautiful experience that is Egypt. It’s a country that captures your heart, and navigating its customs is the first step to letting it in.