Throughout 2011, 1,340 new hotel rooms were constructed in Israel. End of the year statistics for capital investment in tourism suggest that the Ministry of Tourism granted 210 million NIS for various tourism projects, out of a total investment of over one billion NIS in 2011.
Most of the grants provided by the Ministry of Tourism went toward the establishment, expansion and renovation of 40 hotels throughout Israel (204.5 million NIS), including 22 new hotels in Jerusalem, Haifa, Tiberias, Acre, Safed and more. Today, the total number of hotel rooms in Israel is 48,340.
In addition, at the end of the year, 6.2 million NIS were granted toward new tourism attractions, out of a total investment of 62.6 million NIS. Over the last few months, the Minister of Tourism, Stas Misezhnikov, agreed with the Ministry of Finance to provide grants for new attractions; this is following eight years in which these grants were frozen. In the coming year, the budget for tourism attractions will amount to 10 million NIS.
The aid granted by the Ministry of Tourism to entrepreneurs and investors is part of the Law to Encourage Capital Investment. Grants for each project can be up to 20% of the total investment, according to specified criteria and the National Tourism Preference Map which was recently expanded in an agreement with the Ministry of Finance and includes Eilat, Jerusalem, Netanya, Haifa, greater Nazareth, Beit She’an Valley, the Golan and Galilee. Grants given toward tourism attractions amount to 10% of the total investment. Due to the high demand for accommodation in Jerusalem over the last few years alongside the lack of supply, grants given toward hotels in Jerusalem amount up to 28% of the total investment.
In 2012, the Ministry of Tourism’s investment budget will amount to 200 million NIS, which is expected to help establish 2,000 new hotel rooms by the year 2013.
(YWN – Israel Desk, Jerusalem)
Join the official YWN WhatsApp status
One Response
Disgusting. The hotels don’t need their help any more than any other business. I don’t see any hotel prices going down bec. of this free money. They are raking in the profits. It’s basically another way to suck up taxpayers hard earned money to help the rich make huge amounts of money. I’m anti-OWS but this isn’t free loans- its stolen money given away for free.