Despite the challenges posed by Israel’s current multi-front war, the Tourism Ministry is promoting efforts to expand the supply of guest rooms in Israel as part of preparations for the return of tourists.
The ministry this week announced decisions on grant applications from developers interested in building, expanding, or converting properties into hotels.
Grants amounting to NIS 82.5 million ($22.62 million) have been green-lighted for developers.
The total investment, including that of the developers, equals a whopping NIS 412.33 million ($113.1 million) across 27 different projects.
Based on the approved applications, approximately 2,700 new accommodation rooms are expected to be added to Israel’s lodging capacity in the coming years.
Dozens of developers responded in recent months to the ministry’s call for grant applications for building hotel accommodations.
Under the Encouragement of Capital Investment Law, the ministry provides grants amounting to 20 percent of the developer’s investment, disbursed in stages according to the progress of the project.
Among the projects approved for grants were:
• A new resort village in Mitzpe Ramon with 260 rooms, receiving a NIS 4.7 million grant from the Israel Ministry of Tourism.
• Three new hotels in Ein Bokek at the Dead Sea, with approximately 950 rooms, receiving a grant of approximately NIS 17.5 million.
• Two new hotels at the site of Eilat’s former (Ovdat) airport, adding 162 rooms.
• Conversion of buildings to add hotel rooms in conflict zone areas such as Metula (21 rooms) and Ma’alot-Tarshiha (27 rooms), along with a new hotel in Ashkelon (99 rooms).
Projects in the Tekuma region, for which building permits have yet to be issued, will be given priority based on the approved budget allocation for hotel construction or expansion, the ministry said.
