Money & costs
Costs
Tipping
Norms for tipping in the United States are different from those in many other parts of the world. In restaurants with sit-down service (where somebody brings your food to your table), customers should leave a 15% tip for acceptable service and a 20% tip for good service: tipping at a lower level reflects dissatisfaction with the service. Waiters normally are paid significantly below minimum wage and they depend on tips for their earnings; the same is true of bartenders.
Don't be confused, however, by the 'tip jars' that grace the counters at other service establishments, such as delis, ice-cream parlors and coffeehouses. The barista who makes your caffe latte and the teenager who scoops your ice cream are not so dependent on your generosity. While you may be moved to drop your change into their bucket (especially if your scoop is extra big), you are not obliged.
Tipping
Many members of the service culture depend on tips to earn a living. Tip taxi drivers (10% to 15%), baggage carriers ($1 per bag), and housekeepers ($3 to $5, more for longer stays). Waiters and bartenders get paid less than minimum wage in the US, so tips constitute their wages. Tip 20% for good service and 15% for adequate service; any less than 15% indicates dissatisfaction with the service.
Economy
The greater Boston area is the seventh-largest regional economy in the United States, with a gross regional product of $255 million in 2005. The Boston economy is fueled by its educational institutions, which are major employers in their own right. They also provide a permanent source of employees for thriving private-sector industries.
The technology and biotechnology industries have spawned from university research labs (quite literally, as MIT researchers developed the first computer in 1928). Wang Computers, Digital Computers, Prime and Data General all began in the Boston area. Cambridge, especially Central Sq and Kendall Sq, is a center for the pharmaceutical industry, hosting companies like Millennium and Biogen.
Boston is home to at least six major hospitals. Again, the hospitals form collaborative relationships with universities for teaching and research. The world-class facilities at the Longwood Medical Area and Massachusetts General Hospital are affiliated with the Harvard Medical School, while the New England Medical Center maintains a relationship with Tufts University. Boston institutions receive more funding than those in any other urban area from the National Institute for Health.
Finally, Boston is a major center for financial services. Mutual funds originated in Massachusetts and became an enormously popular investment tool for individual retirement plans, due in part to promotion by Boston-based Fidelity Investments. Insurance and venture capital are also significant.
Much of this white-collar industry developed in the 1980s and 1990s - breathing new life into a city that was suffering from the decline of its manufacturing sector. This economic turnaround is sometimes called the 'Massachusetts Miracle.'
The result today is a robust economy that continues to grow. The downside of the city's prosperity, of course, is its high cost of living. Some reports estimate that Boston is the most expensive metropolitan area in the country. Housing prices are prohibitively high, having increased more than 80% in the first five years of the new millennium. This concerns companies and schools who want to attract talent from elsewhere. Recruiters lament the low- to moderate-income family being frozen out of the housing market, as do the low- to moderate-income families.
Boston is also an expensive place to visit. Once in town, the bulk of your expenses will be for accommodation. Fancy hotels in Boston can cost as much as you are willing to pay, but it is possible - taking advantage of discounted web rates - to stay in a respectable, central hotel for $125 to $175 (per night, per double room). Guesthouses and budget hotels run to $100 to $125, while hostels cost $25 to $40 for a bed.
Eating is also not cheap. Three sit-down meals a day, including one at an upscale restaurant, will easily cost $60 per person. Forgoing drinks or grabbing a meal at a less expensive venue trims that estimate to $40. At best, self-catering and cheap eats make it possible to eat for about $20 per day.
Money
The US dollar is divided into 100 cents. Coins come in denominations of 1¢ (penny), 5¢ (nickel), 10¢ (dime), 25¢ (quarter) and the rare 50¢ piece (half dollar). Bank notes come in $1, $2, $5, $10, $20, $50 and $100 dollar denominations.
ATMs
Automatic teller machines (ATMs) are great for quick cash influxes and can negate the need for traveler's checks entirely, but watch out for ATM surcharges. Most banks in Boston charge at least $1.50 per withdrawal.
The Cirrus and Plus systems both have extensive ATM networks that will give cash advances on major credit cards and allow cash withdrawals with affiliated ATM cards. Look for ATMs outside banks and in large grocery stores, shopping centers and gas stations.
If you are carrying foreign currency, it can be exchanged for US dollars at Logan International Airport. Bank outlets around the city are not so reliable about offering currency exchange services.
Taxes
Although there is no national sales tax (such as VAT), there are state and local taxes to consider. Hotel rooms are subject to 8.45% sales tax in Boston and Cambridge. B&Bs with three rooms or less are exempt from this tax.
All sales are subject to a 5% sales tax, except food (purchased in a store, not in a restaurant) and clothing up to $175. Prices in this book don't include taxes.
Boston
Things to do
- Entertainment (127)
- Restaurants (141)
- Shopping (99)
- Sights (81)
- Hotels & hostels
