The Tourism Ministry continues to work to encourage an increase in the supply of hotel rooms in Israel. This week, the Investments Authority in the Tourism Ministry allocated grants for the construction and expansion of 2 hotels in Israel, adding 131 hotel rooms to the existing supply. This included the allocation of a grant to build a new hotel in Kiryat Shmona and the expansion of the Lot Hotel in the Dead Sea. In addition, the following approvals were also made: allocations to build four attractions in Israel including a water park in Eilat and the expansion of the Underwater Observatory in Eilat. The total investment in the initiatives: about 147 million NIS with the grants allocated amounting to 23 million NIS.

For the first time in over 20 years, a new hotel will be built in Kiryat Shmona, a town in the north of Israel that to date has no hotel. The hotel, which will be built near the town’s shopping mall, will have 104 guest rooms at a total investment of about 59 million NIS. The total grant allocation approved by the Tourism Ministry is 12 million NIS. In addition, the Lot Hotel in the Dead Sea will also receive financial assistance. Within the framework of the inclusion of the Dead Sea region in the national priority tourism map, the Investments Administration approved a grant of about NIS 5 million to help fund the expansion of a further 27 rooms in the hotel. The total investment stands at 25 million NIS.

As a result of the Tourism Ministry’s policies in which grant allocations also include tourism attractions as of 2011, the Investment Administration also approved grants this week for the establishment of four new tourism attractions in Israel: a water park in Eilat at a cost of 31 million NIS; the expansion of the Underwater Observatory in Eilat at a cost of 20 million NIS; the establishment of an experiential tourism attraction at Kibbutz Yotvata at a cost of 10 million NIS and the establishment of a wooden boat cruise on the Kinneret at a cost of 2 million NIS. The ministry is currently investigating another 20 requests for grant allocations, among them requests to establish a new hotel in Jerusalem.

Tourism Minister Stas Misezhnikov: “Increasing the hotel supply in Israel is the required step in order to increase competition that will in turn lead to a decrease in the cost of vacationing in Israel. The Tourism Ministry will continue to work towards increasing the number and range of hotel rooms in Israel in order to meet the ever-growing demand of incoming tourism, while incentivizing entrepreneurs with grants and by easing regulations and canceling unnecessary regulations. The ministry is preparing for the arrival of 5 million tourists by the year 2015 by, among others, increasing the range and type of tourism attractions and leisure opportunities in Israel in order to provide the tourist with a quality experience that competes with other tourism destinations around the world.”

The main assistance provided by the Tourism Ministry to entrepreneurs and investors in the hotel industry is implemented through grants within the framework of the Law to Encourage Capital Investment in accordance with the national tourism priority map. In accordance with this, the ministry approves grants up to 20% of the total investment in hotels and up to 10% for tourism attractions. In Jerusalem and Tiveria, these grants reach up to 28% of the total investment in hotels.

(YWN – Israel Desk, Jerusalem)