Is Tipping in a Different Currency a Travel Faux Pas or a Practical Choice?

In this month’s “Dear Eugene,” we answer whether it’s ever acceptable to tip in a different currency than that of the country you’re visiting.

Inspired by our intrepid founder, Eugene Fodor, Dear Eugene is a monthly series in which we invite readers to ask us their top travel questions. Each month, we’ll tap travel experts to answer your questions with the hopes of demystifying the more complicated parts of travel. Send your questions to [email protected] for a chance to have them answered in a future story.

Dear Eugene: On my last day traveling in Vietnam, I ran out of Vietnamese đồng and didn’t want to withdraw more cash, so I started tipping in U.S. dollars. My wife was aghast, saying my USD tips would cause a hassle to the person I was tipping, who would now have to deal with exchanging it for their local currency. Is it ever okay to tip in a different currency while traveling?

Ah, yes—another tipping minefield. Tipping is perhaps one of the most asked travel questions—mainly because practices vary so much from location to location, and practices also evolve.

While the answer to this question can vary from country to country, let’s begin with Vietnam. Vietnam, specifically, does not have a big tipping culture, so few workers will take offense if they don’t receive a tip. However, American tipping practices have seeped into the travel culture in Vietnam over the years, primarily in Western-branded hotels and for major tour companies.

There was a time—generally decades ago—when it was considered favorable to tip in many countries with dollars. This was generally during periods of economic uncertainty, such as when a country was facing monstrous inflation or had devalued its currency. Then, tipping in U.S. dollars was more worthwhile for many tourism workers. Nowadays, however, global currencies are more stable, and tipping in U.S. dollars can prove a hassle for workers to deal with.

When, if Ever, Is It a Good Idea to Tip in Dollars Abroad?

One good rule we like to use when questioning whether to tip in U.S. dollars or the local currency is to consider whether U.S. dollars are readily accepted. In major cities throughout Vietnam, for example, U.S. dollars are often widely accepted, although you’ll want to make sure the bills aren’t torn or worn and are recently issued; otherwise, both you and whomever you’re tipping may have a harder time using them.

Currency exchanges are also widely available in Vietnam, and they offer competitive rates, so exchanging dollars for local currency isn’t a huge hassle. If you’re traveling outside of Vietnam, dollars are also widely accepted in neighboring Cambodia and Laos, where tipping is also not customary.

If your choice is between tipping in dollars and not tipping at all, dollars are fine, but it’s worth noting that not tipping in Vietnam is also acceptable, too—and you can bet tourists from non-tipping areas like Europe or Japan aren’t leaving tips either.

What About Tipping with Dollars in Other Countries?

In other countries, tipping is a different story. The dollar is widely accepted in much of the Caribbean (several non-U.S. islands, including Bonaire and Turks & Caicos, use it as their only legal tender). It’s also the only legal tender in El Salvador and Ecuador and is the legal tender alongside the little-used Balboa (which is only available in coins) in Panama.

Several other countries issue their own currencies but also accept U.S. dollars side-by-side with the local currency at a fixed rate. You should feel good about tipping in dollars in these countries, which include The Bahamas, Barbados, Belize, and Costa Rica.

U.S. dollars are also widely accepted in much of Africa, and it’s perfectly ok to tip in dollars in many African countries outside South Africa, where the dollar is not widely accepted. Dollars are the de facto currency in Zimbabwe and are easily accepted in many other countries, including Rwanda, Madagascar, Tanzania, Kenya, and Egypt. When paying in U.S. dollars in many parts of Africa, whether for tips or other items, it’s best to use $1 or $5 notes that are in good condition (not overly worn, torn, or dirty) and issued within the last five to ten years.

Tipping in local currency is a hard-and-fast rule in many other countries. In the Eurozone, for example, you should always tip in euros. European countries not inside the Eurozone similarly don’t readily accept foreign currency, so tip in the local currency there, too. It’s also worth noting that tipping is a less common practice in much of the continent, so it’s not particularly pressing to have local currency on hand for tips.

Some hotels have taken care of the currency exchange issue for guests—they allow guests to tip electronically by scanning a QR code. Other hotels offer currency exchange services at their front desks, although this practice has generally been in decline. Some countries—like Argentina, for example—limit currency exchanges only to designated points, meaning not every bank will be able to offer exchange services or may only offer them for their account holders.

Ultimately, the best maxim to remember is that gratuities are—by definition—discretionary. It’s up to you whether or how you wish to leave them as recognition for good service. In many locales, however, a smile and a genuine thank you are the universal currency for expressing gratitude for the workers who make your travels welcoming and comfortable.