All the news about Israeli tourism

The Israel Hotels Association met in emergency session at their offices in Tel Aviv, to discuss possible moves to prevent the imposition of VAT on tourist packages to Israel; this in light of the government’s final budget proposals.  Naor Chen, vice president of the association said “Not everyone understands the significance of the decision; our aim is to make them aware.”

The leadership of the Association invited to the emergency session, hoteliers from Tiberias, Nazareth, Acre, the Dead Sea, Beersheva and Ashkelon.  They warned them of the expected fall in tourist numbers likely to occur if the Treasury’s suggestions are implemented and the resulting serious damage that it is likely to be caused to the outlying regions, especially in light of the state’s difficulty in providing solutions regarding employment.

According to Avi Zandberg, chairman of the Tiberias Hotel Association, the Treasury’s program is designed to wipe out the tourist industry in the outlying regions.   He asked sarcastically “What solution will the state give to those dismissed from the tourist industry?”  He added “It’s preferable to allocate the budget to overseas marketing than to invest in the labor exchange.”

Zandberg admitted that the mayors in the northern towns were worried about the proposals from the Treasury and had made these fears known to their parliamentary representatives.  Ariella Shmida-Doron, chairwoman of the Jerusalem Hotels Association joined in, warning that the tourist industry in the capital was already close to collapse as a result of the economic recession.

Naor Chen, the Association’s Vice President responsible for hotels not belonging to any chain, explained to Educational that in his opinion many did not understand the significance of the decision to impose VAT on foreign tourists.  Chen added while the proposal of the tax authorities didn’t have much support at the same time it had faced little opposition.

Chen complained that Israel is not regarded as a classic tourist country and does not benefit from government support.  “The implications of the decision will be intolerable for the industry and our aim is to raise the awareness and explain the repercussions to those who will vote on this issue.”

In the meantime, the management of the Israel Incoming Tour Operators Association has written a letter to Stanley Fisher, the Governor of the Bank of Israel requesting that he intervene on the matter and recommend that it not be implemented until a full economic analysis has been carried out on the significance to the economy and to the tourism industry of imposing VAT.

Ami Etgar, head of the Israel Incoming Tour Operators Association wrote to Fisher, warning that the government’s decision to impose VAT was a hasty one and failed to analyze the significance that it would have on the economy.  He warned Fisher that the intention of the government to impose VAT on foreign tourist packages would damage the improving trend in the industry which was still reeling from the effects of the military operation in Gaza and the economic recession.