Tourism Minister Yariv Levine believes local hotels have to cut prices to make tourism overnights more affordable towards boosting tourism. He is also calling for cutting taxes on hotel stays. He explains the ministry is working hard to build additional hotels, which he feels will provide additional rooms – another step that will lead to lower prices as availability will increase.

Levine explains “Every million tourists bring in NIS 3.5 billion, and create 40,000 jobs. Even though this is well known, tourism in Israel has not been given weight in national priorities – not in the budget and not in attention devoted to the subject, and this is going to change. We’re starting from a fairly low beginning of 2.8 million tourists a year, and as far as I’m concerned, we’re at a turning point.

Levine feels there is simply too much regulation in Israel in general, and this includes the hotel industry. He explains the ministry has taken steps to reduce hotel costs, including the elimination of a fitness instructor in a hotel fitness room; revised regulations for night shifts; flexibility regarding overtime; eliminating the requirement for a pool operator – all towards lowering hotel costs to tourists.

Levine adds he is working with Finance Minister Moshe Kahlon and they have developed a plan to cut hotel prices by 20%. The plan includes constructing an additional 15,000 hotel rooms over the next five years.

The Hotel Association explains in its response that their profit margin is low and this is a main reason others do not enter the market – high costs and low profit. The association adds that flooding the tourism market with low-price hotels will not resolve the matter.

The Hotel Association adds that it is the first industry to suffer as terrorism escalates, as was seen during recent months.

(YWN – Israel Desk, Jerusalem)