15 years
It looks like there are more hostels since I was there. I haven't been to Old Jaffa Hostel...
Things to see depend on interests...
The Galilee is green in the winter (Sea of Galilee, Jordan River, sermon on the Mount, Crusaders). Jerusalem is a must visit. If you like desert go to the Negev (Bedouin, hiking). The Dead Sea area is another worthwhile trip (Masada, Dead Sea Scrolls, etc.).
It might be worth going on some established day tours in addition to self touring because there is so much to see. (Or at least maybe get a really good guidebook that focuses on history.) One place I wish I had gone to that I missed is Armageddon (Har Megido).
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