All the news about Israeli tourism

According to data released by Dun and Bradstreet, most travel agents in Israel have cut employees’ wages as a result of the economic recession.  On average the wage cuts have been around 10 percent, while for the management closer to 15 percent.

The revenue of the 10 largest travel agents last year totaled 4.4 billion shekels, an increase of 13 percent compared to the previous year.  The largest travel agent in Israel was Flying Carpet, which in 2008 had total revenue of 750 million shekels.

In second place was Clal Tourism with revenue totaling 602 million shekels, an increase of 8.5 percent.  Issta Lines maintained third place with revenue of 589.5 million shekels, up by 10.3 percent on 2007.  In fourth place Aviation Links with total revenue of 525.6 million shekels, an increase of 23.1 percent on the previous year.

Eshet Tours was ranked fifth with revenue of 426 million shekels, an increase of 20 percent on 2007.  Third Millenium (Tzabar Tourism) ranked in sixth place with revenue of 418 million shekels and Ophir Tours in seventh place with revenue totaling 410 million shekels.

From data released by Dun and Bradstreet it is clear that a number of travel agents were forced to fire employees and to close branches and even now other agents are trying to form mergers.  An economist for Dun and Bradstreet commented that In the first four months of the year (January-April) revenue for the travel agents tumbled by some 30 percent; with those most badly affected being the medium size travel agents that earn a living from business travelers.

He also added that the competition and atmosphere that is present in the industry has resulted in lower prices and increased the willingness of the public to purchase tourism products. This will help businesses to handle the situation until the economy recovers.

Reuven Kovent, CEO of Dun and Bradstreet in Israel explained that the world economic crisis is expected to continue and have a negative effect on the tourist industry and for travel agents in particular. He added “The continuing price cuts will hit revenues in the industry and it is reasonable to assume that the crisis will continue for travel agents.