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Data released by the Central Bureau of Statistics shows that hotel revenues in Israel during 2008 were at their highest levels since the year 2000.  The increase thanks largely to a 13 percent increase in revenue from overseas tourists.

During 2008 total revenue recorded by hotels in Israel was 7.8 billion shekels, an increase of 5 percent on 2007.   Of this total, 3.4 billion shekels came from tourists, compared to 3 billion shekels in 2007.

The number of hotel nights registered in 2008 was 21.6 million, of which 10.2 million came from tourists, an increase of 21 percent on the previous year.  The number of hotel night’s from Israelis fell by 6 percent compared to 2007.

Total revenue from Israelis, including hotel nights, functions and other hotel services; plus purchases and services from tourists not exempt from VAT, totaled 4.5 billion shekels, an increase of 5 percent on the previous year.

The revenue from overseas visitors as a percentage of the total revenue was more than 43 percent. This is the highest level since 2000 when tourist revenue accounted for 45 percent.  During the intifada, tourist revenues fell dramatically and reached as low as 22 percent in 2002.

Hotel revenues were up throughout the country.  Netanya by 15%, Jerusalem 12%, Herzliya and Tiberias 9%, Eilat 8% and the Dead Sea 10%.  Israelis contributed more than 60 percent of the revenue to hotels in West Jerusalem and Tel Aviv; while more than half of the revenue from the hotels in Eilat and Dead Sea hotels came from Israeli tourists.

During 2008, the hotel industry in Israel contributed close to 27,000 jobs, an increase of 2.5 percent on the previous year, with an average wage of close to 6,000 shekels per month ($1,500).

Shmuel Zuriel, head of the Israel Hotels Association, said that the increase in the number of hotel nights was far greater than the increase in hotel revenue.  He gave the reason for this imparity as being the weakness of the dollar which affected tourist revenues.  He also added that the average monthly wage for a salaried hotel worker of 6,000 shekels exceeded the minimum wage.