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Despite tourism upswing, profits decline Steve Walz
T
he strong Israeli shekel, increased security costs, and regional instability are cutting into the profits of Israel’s tourism industry, even as many Israeli hotels in Tel Aviv and Jerusalem are reporting record-breaking numbers of foreign visitors. Several tourism sources also maintained that last month’s early Jewish holiday season had a negative impact on the bottom line at many hotels. Israel’s Central Bureau of Statistics claimed that “255,000 visitors entered Israel in September 2013, which is 16 percent less than September 2012 and less than 2010 and 2011.” The decrease in arrivals in September, said the bureau, “can be attributed to various factors, including a 90 percent decrease in the number of day visitors arriving via land crossings (because of the instability in Egypt).” In addition, the High Holy Days this year all fell in September, leading to a further decrease
Dan Tel Aviv Hotel outdoor sunset
“due to the high prices and high occupancy of hotels (largely by Israeli clients).” And yet, the same bureau revealed, since the beginning of 2013 through September, more than 2.6 million visitors arrived in Israel, which is 2 percent
more than the same period in 2012, 5 percent more than 2011, and 4 percent more than 2010. Recently, Israel’s Ministry of Tourism said that the Jewish state would eclipse three million visitors by the end of 2013. The influx of several international conferences, including the recent WATEC (water treatment technology) conference in Tel Aviv and the forthcoming General Assembly of Jewish Federations in November, is creating a wave of instant profits for local hotels, which are booked solid. However, Ami Federman, president of the Israel Hotel Association, tempered the optimism when he told Israel MoniTour News that the Israeli hotel industry could lose at least $45 million this year based on the volatile currency exchange markets, where the strong shekel has weakened the value of an American dollar. Hotel rates for overseas/incoming tourists are in dollars; a strong shekel weakens the dollar’s buying power and adversely affects incoming revenues.
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percent off the best available rate” and advanced-purchase pre-paid rates. David Citadel Hotel, Jerusalem — Winter specials at the luxury hotel include a complimentary dinner at the Scala, chef kitchen and bar, regarded as one of Israel’s best kosher gourmet restaurants, when a couple stays for five nights or more. The hotel is also offering such winter deals as a spa excursion, as well as a 12 percent discount based on a 14-day advance nonrefundable, prepayment. Inbal Jerusalem Hotel — Guests who book three consecutive nights during the late fall and winter seasons will be eligible for a free tour in a private car with a certified guide. Three itineraries are offered: a one-day crash course in 3,000 years of Jerusalem history that includes such sites as the Mount of Olives, Western Wall, Knesset, and Yad Vashem; the Judean Desert, including Ein Gedi, Qumran, the Dead Sea, and Masada; and a tour of the Castel winery in the Jerusalem Mountains and the Mony and Kibbutz Tzora wineries near Beit Shemesh. Dan Hotels — Couples who are looking to go on a winter honeymoon — or a “second honeymoon” — will find the weather in Israel relatively mild and can take advantage of the indoor and outdoor activities at the Dan Hotels in Tel Aviv, Herzliya, and Eilat. n
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The leaders of Israel’s hotel industry and Israel Export Association have urged Prime Minister Benjamin Netanyahu and the Bank of Israel to intervene in order to stabilize the shekel/ dollar rate (current rate is around 3.55 shekels to the dollar). Hotels and exporters were able to cushion their profit margins to the tune of tens of millions of dollars when the shekel-to-dollar rate hovered between 3.9-4.1 less than a decade ago. Federman added that the Israeli police have requested that hotels increase their security protocols, which has increased hotel costs by 2 percent, or about $50 million dollars a year. These factors haven’t stopped Israeli hotels from rolling out a number of enticing winter hotel offerings; here are some highlights: Rimonim Hotels — The Rimonim Royal Dead Sea features one of the largest health clubs of its kind in the Middle East, offering the benefits of minerals in the Dead Sea. The club has 32 treatment rooms that offer some 50 types of treatments, mud rooms, massage rooms, beauty salons, a heated (in season) indoor Dead Sea pool, and a freshwater outdoor pool. Sheraton Tel Aviv Hotel — Adjacent to the beachfront promenade, the hotel is offering several winter deals, including a “stay 5 (nights), get 20