The Tourism Ministry has established a fund that will offer assistance to international conferences taking place in Israel, via a directive that will be published in the coming days on the ministry’s website. The fund, with an initial budget of 15 million NIS, will reimburse conference organizers their marketing and advertising costs (about 20% of conference costs with the potential of reaching tens of thousands of dollars), in the event that the conference is canceled for unexpected reasons. It should be noted that the compensation relates to advertising and marketing costs that are incurred long before the conference itself and not in situations where a conference does not take place, as opposed to the possibility of canceling airline and hotel bookings made for the conference.

Conference tourism is essential for Israel’s economy – it is one of the most profitable sectors and significantly influences Israel’s image overseas. The niche is characterized by long-term planning by the companies involved. The absence of a safety net and guarantees by government bodies represents a significant obstacle to conference tourism in Israel, given the great financial investment required. The Tourism Ministry believes that this directive will reduce the concerns of conference organizers regarding a loss of their investment in the event of security incidents etc.

Holding international conferences in Israel has added value in that conference organizers and participants are, in general, opinion-formers of relatively high socio-economic status who consume a wide range of tourism services during their stay in Israel.

Tourism Ministry Director-General Amir Halevi stated “Conference tourism is a developing market which is valued at about $12 billion. Millions of people participate in about 12,000 international conferences a year, representing enormous potential. We believe that creating a safety net will help put Israel back on the international conference map. The combination of popular tourist sites and the holy sites with the leaders in academia, and technological and agricultural development makes Israel an attractive conference destination.”

Tourism Minister Yariv Levin explains “An essential element in encouraging incoming tourism in general and conferences in Israel in particular, is granting a safety net to organizations in the event that a conference is postponed or canceled as a result of the security situation. After many years during which this significant obstacle was not addressed, seriously affecting incoming tourism, the ministry is taking an important first step with this safety net for compensations in the event of conference cancelations. This is part of a package of steps that I intend to lead in order to create confidence and increased business confidence for all operators in the industry.”

Background

Until the 1990s, Israel was a sought-after destination for international conferences. In 1997, Israel was ranked number 7 in the world in hosting international conferences, mainly in the fields of medicine and science. In the 90s, Israel hosted over 40 international conferences throughout the country, and particularly in Jerusalem. With the outbreak of the intifada in the year 2000, many international conferences were canceled and Israel effectively was passed over as a potential conference destination.

According to data from the ICCA (International Congress and Convention Association), there are about 24,000 conferences held annually, of which half are international. The majority deal with medicine, science, academic research, trade, professional bodies and social organizations. The incoming conference tourist spends about three times more than the average tourist – about $2-3000 on average. The leading conference destinations are the USA, Germany and Spain. About 4.5 million people participated in conferences in 2013, with expenditure by participants in international conferences valued at about $11.7 billion.

(YWN – Israel Desk, Jerusalem)