Backpacking in the Middle East comes with its challenges, but if you’re looking for an off-the-beaten-path adventure, Iraq is an experience like no other. Unlike the images many people have of Iraq, Kurdistan is a peaceful, welcoming region with friendly locals, stunning mountain landscapes, and a growing economy.
But before you pack your bags, understanding how to budget with the Iraqi Dinar (IQD) is key to making your journey smooth and affordable.
Is Iraqi Kurdistan Expensive for Backpackers?
The cost of traveling in Iraq depends on how you plan your trip. While it’s cheaper than many Western destinations, some aspects – especially accommodation and Visa – can be surprisingly expensive for budget travelers. However, with smart spending, it’s possible to explore Kurdistan affordably.
Budget travelers can get by on $35 per day, covering cheap hotels, street food, and shared taxis.
Mid-range travelers should expect to spend $80 per day, including better hotels and restaurant meals.
Couchsurfing or staying with locals significantly reduces costs, making it a great option for those on a tight budget.
While food and transport are relatively cheap, accommodation is the biggest budget challenge. Finding affordable hotels can take effort, but many owners are usually willing to negotiate prices for backpackers. Booking in advance isn’t always necessary, as you can often find a better deal by walking in and asking.
Where to Get Iraqi Dinars?
One of the most important things to know before backpacking in Iraqi Kurdistan is how to obtain and use the local currency, the Iraqi Dinar (IQD). You’ll need it for food, local taxis, and other transactions.
Keep in mind that the government banned U.S. dollars for transactions as of January 2024, but many locals are still willing to accept them in addition to their local currency.
Exchanging money is fairly easy, and there are several ways to do it:
- Hotels and exchange shops readily convert USD to IQD, and many small businesses (like phone and jewelry stores) also offer exchange services.
- The black market in Erbil’s old town often has better rates than banks, making it a popular option for travelers looking to stretch their budgets.
- ATMs are unreliable for foreign cards. Many don’t work with Western debit or credit cards, and those that do are often out of service. It’s best to bring plenty of U.S. dollars in cash before arriving.
- When paying in USD, expect to receive change in Iraqi dinars. This is common practice, so you’ll likely accumulate a good amount of local currency naturally.
Since Iraqi dinars can be difficult to exchange once you leave Iraq, try to use up most of your cash before departing. If you need to convert leftover dinars back into dollars, the best place to do so is at major exchange shops in Erbil or Sulaymaniyah.
Cost Breakdown for Backpackers
Backpacking in Iraqi Kurdistan can be surprisingly affordable, but the cost of travel largely depends on your choices. While food and transportation are cheap and accessible, accommodation will take up most of your budget.
However, negotiating prices and using local transport wisely can help stretch your funds.
Accommodation
Since there are no traditional backpacker hostels in Kurdistan, travelers will mostly rely on budget hotels. Prices vary depending on the city, but in smaller towns, hotel staff are often willing to offer discounts, especially to backpackers.
- Budget hotels: $10 – $20 per night (some go up to $35)
- Mid-range hotels: $45 – $70 per night
- Luxury hotels: Can exceed $100 per night
If you’re trying to save money, consider couchsurfing or staying with locals. Kurdish hospitality is well-known, and many travelers have reported locals offering free stays and meals, making Kurdistan one of the easiest places to experience genuine hospitality.
Food & Drinks
Eating in Kurdistan is affordable and delicious. Street food is the best option for budget travelers. Meals are meat-heavy, so vegetarians must rely on falafel and salads.
- Street kebabs & shawarma: $0.50 – $2
- Restaurant meals: $5 – $15
- Falafel sandwiches: $0.50 – $1
- Tea & soft drinks: Less than $1
- Alcohol (in Christian areas like Ainkawa, Erbil): Very cheap compared to other Middle Eastern countries
Portions are often generous, and many hotels offer free breakfast, so consider these when choosing a place to stay.
Transportation
Thanks to Kurdistan’s network of shared taxis, moving between cities is simple and inexpensive. These taxis are the primary mode of transport and only depart once they are full, making them efficient but sometimes requiring patience.
- Shared taxis between cities: $5 – $25 per ride
- Local taxis within cities: $2 – $3 per ride
- Hitchhiking: Possible, but military checkpoints can complicate it
- Public transport: Rarely used, but overnight trains (Baghdad to Basra) cost around $30
If you’re taking a shared taxi, be prepared to wait – drivers won’t leave until all seats are filled. For city transport, bargaining with taxi drivers can sometimes help lower the fare, especially if you know the local rates.
Keep in mind that this information is compiled from the combined experiences of travelers and official sources over the years, so these prices may vary slightly today.
Is Kurdistan Safe for Travelers?
Despite Iraq’s turbulent history, Kurdistan is incredibly safe for visitors who stick to recommended areas.
The main travel route – Dohuk, Erbil, and Sulaymaniyah – is safe, and locals are extremely hospitable. However, avoid Mosul and Kirkuk, as these areas remain volatile.
Expect frequent military checkpoints along the way, but officials are friendly and professional. Just have your passport and documents ready, and you should get through with no trouble.
Final Tips For Backpackers and Travelers
In the end, here are some final traveling tips to keep in mind:
- Carry cash – ATMs are unreliable, and credit cards are rarely accepted.
- Budget for higher accommodation costs – This will be your biggest expense.
- Stick to street food – It’s cheap, delicious, and widely available.
- Dress modestly – Especially for women, though Kurdistan is less conservative than other parts of Iraq.
- Avoid dangerous regions – Check travel advisories before heading south or west.
Backpacking through Iraq is a unique experience. While budgeting with the Iraqi Dinar takes some planning, it’s entirely possible to explore this fascinating region without breaking the bank.
And trust us, it’s totally worth it – Kurdistan offers a rare glimpse into a side of Iraq that few travelers ever see.
