Daily Newsletter

31 August 2023

Daily Newsletter

31 August 2023

Israel plans to add hotel rooms to boost tourism

Israel expects domestic and inbound tourism to generate NIS75bn ($20bn) in revenue by the end of the 2020s.

Upasana Mukherjee August 30 2023

Israel's Tourism Ministry plans to add 3,940 hotels in 2024 and attract seven million tourists by the end of the 2020s, reported ANI.

The ministry intends to speed up hotel construction by reducing planning procedures, looking at the realisation of claims and mixed-use developments and creating a national tourism plan.

It expects domestic and inbound tourism to generate NIS75bn ($20bn) in revenue with 220,000 individuals working directly in the tourism sector by the end of the 2020s.

Israel tourism Minister Haim Katz stated: "We will direct resources to markets with tremendous potential that we have not realised so far, with an emphasis on the Asian market. We are committed to appropriate treatment for tourists.

“I am working with the security authorities in order to bring about a change in the inspection procedure at the entry and exit from the country."

Israel has 58,000 guest rooms. To attract seven million tourists, 12,000 additional rooms will be required, reported Itn.co.il.

The ministry has taken measures in 2022 to diversify and increase the supply of guest rooms, including reducing the height restriction on hotel construction in Eilat City, which is leading to the addition of hundreds of rooms there.

The measures also include the "seasonal pop-up" programme, which has led to the operation of glamping and camping complexes, as well as creating a committee to reduce the duration of hotel establishment processes.

Demand for upscale and luxurious products has been rising steadily in the travel and tourism sector

The increased need for privacy, a greater focus on health and wellbeing, a desire to tick off ‘bucket list’ experiences, the tendency to take longer trips, the focus on eco-tourism, and an increase in millionaires means the theme of premiumization will continue to grow in importance. The travel industry will experience a surge in demand for higher-end and customized offerings as experiential consumption keeps growing. While premiumization attracts only a small number of global travelers, it is a valuable revenue stream for companies as it is unlikely to be impacted by external factors like economic downturns.

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