Identifier
Created
Classification
Origin
05TELAVIV5124
2005-08-18 14:36:00
UNCLASSIFIED
Embassy Tel Aviv
Cable title:
THE ISRAELI TOURISM SECTOR, JANUARY TO JUNE 2005
how-toThis record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 TEL AVIV 005124
SIPDIS
E.O. 12958: N/A
TAGS: ECON IS ECONOMY AND FINANCE
SUBJECT: THE ISRAELI TOURISM SECTOR, JANUARY TO JUNE 2005
UNCLAS SECTION 01 OF 02 TEL AVIV 005124
SIPDIS
E.O. 12958: N/A
TAGS: ECON IS ECONOMY AND FINANCE
SUBJECT: THE ISRAELI TOURISM SECTOR, JANUARY TO JUNE 2005
1. (U) Summary: The number of tourist entries from January
to June 2005 increased 27.3 percent year-on-year. The Bank
of Israel (BOI) is forecasting a total of 1.9 million
visitors this year contributing to a 0.2 percent increase in
GDP. The BOI and Bank Leumi are citing a calmer security
situation as the reason for the increase in tourists, and the
Ministry of Tourism (MOT) is claiming visitors have helped
create 6,000 new jobs in the first six months of 2005. The
Transportation Ministry has convened with an inter-agency
committee to discuss an "open skies" agreement, while the MOT
hopes to present a bill by the end of the year to legalize
gambling. In the near future, the MOT plans to put an
emphasis on tourism to Jerusalem and the Negev, and is
thinking about preparations for Israel's 60th anniversary in
2008. End summary.
-------------- --------------
Tourism, A Bright Spot In The Israeli Economy In 2005
-------------- --------------
2. (U) From January to June 2005, 864,200 tourists entered
Israel, a 27.3 percent increase compared to 679,300 during
the same period in 2004. In a recent press release, Tourism
Minister Avraham Hirchson stated that Israel is "witnessing a
tremendous momentum in the tourism sector," and that this is
due to a new era in the Israeli economy. The Bank of Israel
(BOI) reports that 1.06 million tourists entered Israel in
2003, 1.5 million in 2004, and 1.9 million tourists will
arrive in 2005.
3. (U) The BOI, in its August economic report, stated that
tourism contributed to an increase of 0.3 percent of Gross
Domestic Product (GDP) in 2004, and that tourism is expected
to contribute to an increase of about 0.2 percent to the GDP
in 2005. Bank Leumi in its July macroeconomics survey noted
that 750,000 tourists visited Israel in the first half of
2005, an increase of about 25 percent compared to 2004. The
number of tourists is reflected in the increase of activity
in a number of sectors including hotels, commerce,
transportation, and tour operations.
--------------
Calming Security Increases Tourism
--------------
4. (U) Bank Leumi and BOI note that the calmer security
situation is one of the major reasons for the increase in
tourism in Israel. From January to June 2005, 221,768
tourists arrived from the U.S., an increase of 24.5 percent
compared with 178,175 in the first six months of 2004. The
Central Bureau of Statistics (CBS) indicates that Americans
accounted for 25.6 percent of tourists in the first half of
2005.
5. (U) CBS reports that there were 134,228 tourists from
France in the first half of 2005, an increase of 27.8 percent
over the 105,098 tourists in the first half of 2004. CBS
also states that French tourists accounted for 15.5 percent
of tourists in both the first half of 2005 and 2004. The
number of French tourists increased by 48 percent in 2004,
and totaled 257,500, accounting for 17 percent of all
tourists. In a July conference in Israel, Hirchson
encouraged French tourism and indicated that efforts were
underway to lower price of flights and attract additional
tourism.
--------------
A Boost for The Economy and Employment
--------------
6. (U) Following the release of the January-June figures,
Hirchson said that the tourism sector is lifting the whole
economy. He asserted that the marketing activity of the
Ministry of Tourism (MOT) in Europe, the U.S., and other
destinations is proving effective. Every 100,000 tourists
creates 4,000 new jobs and contributes USD 200 million to the
GDP, Hirchson claimed. He noted that in the first six months
of 2005, tourism helped create 6,000 new jobs.
--------------
The Skies May Be Opening
--------------
7. (U) The 2006 Arrangements Bill, presented to the Cabinet
on August 9, contained an "open skies" clause. Former
Finance Minister Binyamin Netanyahu and Hirchson were in
favor, with Netanyahu seeing this as strengthening
competition and Hirchson arguing that it is a stimulus for
increasing tourism. Opposition by the Minister of
Transportation led to a compromise in which authority for
licenses to fly to Israel remains in the hands of the
Ministry of Transportation.
8. (U) The Minister of Transportation must consult with a
"professional" committee that will be made up of the
Director-Generals from tourism, aviation, finance, and the
Prime Minister's office. The opinion of the committee will
be presented to the Minister of Transportation within 30
days. In addition, the Transportation Minister will have to
consult with the Tourism Minister before reaching a decision.
9. (U) In a related story, Hirchson stated that the tourism
sector is expected to blossom in light of the change in the
law. He said that it would encourage competition and open
Israel's skies to new entrants on the Israeli market. He
noted that the Ministry of Tourism (MOT) is pleased with the
government's decision, and that the citizens of Israel will
enjoy fair competition and lower-priced air tickets.
--------------
Las Vegas In Eilat
--------------
10. (U) In May, Netanyahu said he would work toward
legalizing gambling. In June, it was reported that Sheldon
Adelson, a Jewish philanthropist and a strong supporter of
Israel, said that he would commit USD 1 billion to develop
casinos in Eilat, if the GOI legalizes gambling. Hirchson
joined Netanyahu's effort, and said he hoped to present a
bill legalizing gambling by the end of the year, with the
hope that a casino would be up in 18 months. In this regard,
the Tourism Minister traveled to Las Vegas in June. Those in
favor say that casinos would boost tourism, provide jobs,
bring in foreign currency, and provide a boost to the
economy. They claim that legalizing gambling in Israel would
prevent the "export" of millions of dollars in foreign
currency.
--------------
Tourism in The 2006 Budget
--------------
11. (U) Tourism is listed as one of the priorities for growth
in the 2006 budget, with particular emphasis on Jerusalem and
the Negev. The budget indicates that in order to accelerate
incoming tourism, a sum (not stated in the budget
presentation) be allocated to the MOT in 2006. The amount
will be determined by a team with members from the MOT, the
Budget Division in the MOT, and the Prime Minister's office.
12. (U) In order to encourage tourism to Jerusalem, and
specifically the Old City, the budget states that NIS 10
million will be allocated within the MOT budget, from 2006 to
2012, with the participation of the Prime Minister's office
budget, to finance a tourism plan for the Old City. Within
the plan for developing the Negev, there are also amounts
allocated for tourism - NIS 20 million for marketing, and NIS
25 million for tourism infrastructure.
--------------
Medium Term Plans: Israel Turns 60 in 2008
--------------
13. (U) The GOI is also thinking about plans for developing
tourism for the 60th anniversary of the state of Israel, in
2008. According to the MOT, tens of millions of shekels are
to be allocated by the Tourism and Housing Ministries. The
Ministry of Housing will be responsible for developing
infrastructure of towns, and the MOT will be responsible for
rehabilitating sites through the company for infrastructure
development, and marketing it to the public.
--------------
Non-Jewish Tourism to the Holy Land
--------------
14. (U) In recent tourism news, China recognized Israel as a
major tourism destination. The MOT said this is a dramatic
development and has tremendous significance. The MOT said
that in light of the Chinese government's decision, they are
asking El Al to increase the number of flights from Beijing
to more than once a week. The MOT reports 3,000 Chinese
arrivals in 2004, significantly lower than the height of
Chinese tourism in 2000, which saw 12,000 Chinese tourists
come to Israel.
********************************************* ********************
Visit Embassy Tel Aviv's Classified Website:
http://www.state.sgov.gov/p/nea/telaviv
You can also access this site through the State Department's
Classified SIPRNET website.
********************************************* ********************
KURTZER
SIPDIS
E.O. 12958: N/A
TAGS: ECON IS ECONOMY AND FINANCE
SUBJECT: THE ISRAELI TOURISM SECTOR, JANUARY TO JUNE 2005
1. (U) Summary: The number of tourist entries from January
to June 2005 increased 27.3 percent year-on-year. The Bank
of Israel (BOI) is forecasting a total of 1.9 million
visitors this year contributing to a 0.2 percent increase in
GDP. The BOI and Bank Leumi are citing a calmer security
situation as the reason for the increase in tourists, and the
Ministry of Tourism (MOT) is claiming visitors have helped
create 6,000 new jobs in the first six months of 2005. The
Transportation Ministry has convened with an inter-agency
committee to discuss an "open skies" agreement, while the MOT
hopes to present a bill by the end of the year to legalize
gambling. In the near future, the MOT plans to put an
emphasis on tourism to Jerusalem and the Negev, and is
thinking about preparations for Israel's 60th anniversary in
2008. End summary.
-------------- --------------
Tourism, A Bright Spot In The Israeli Economy In 2005
-------------- --------------
2. (U) From January to June 2005, 864,200 tourists entered
Israel, a 27.3 percent increase compared to 679,300 during
the same period in 2004. In a recent press release, Tourism
Minister Avraham Hirchson stated that Israel is "witnessing a
tremendous momentum in the tourism sector," and that this is
due to a new era in the Israeli economy. The Bank of Israel
(BOI) reports that 1.06 million tourists entered Israel in
2003, 1.5 million in 2004, and 1.9 million tourists will
arrive in 2005.
3. (U) The BOI, in its August economic report, stated that
tourism contributed to an increase of 0.3 percent of Gross
Domestic Product (GDP) in 2004, and that tourism is expected
to contribute to an increase of about 0.2 percent to the GDP
in 2005. Bank Leumi in its July macroeconomics survey noted
that 750,000 tourists visited Israel in the first half of
2005, an increase of about 25 percent compared to 2004. The
number of tourists is reflected in the increase of activity
in a number of sectors including hotels, commerce,
transportation, and tour operations.
--------------
Calming Security Increases Tourism
--------------
4. (U) Bank Leumi and BOI note that the calmer security
situation is one of the major reasons for the increase in
tourism in Israel. From January to June 2005, 221,768
tourists arrived from the U.S., an increase of 24.5 percent
compared with 178,175 in the first six months of 2004. The
Central Bureau of Statistics (CBS) indicates that Americans
accounted for 25.6 percent of tourists in the first half of
2005.
5. (U) CBS reports that there were 134,228 tourists from
France in the first half of 2005, an increase of 27.8 percent
over the 105,098 tourists in the first half of 2004. CBS
also states that French tourists accounted for 15.5 percent
of tourists in both the first half of 2005 and 2004. The
number of French tourists increased by 48 percent in 2004,
and totaled 257,500, accounting for 17 percent of all
tourists. In a July conference in Israel, Hirchson
encouraged French tourism and indicated that efforts were
underway to lower price of flights and attract additional
tourism.
--------------
A Boost for The Economy and Employment
--------------
6. (U) Following the release of the January-June figures,
Hirchson said that the tourism sector is lifting the whole
economy. He asserted that the marketing activity of the
Ministry of Tourism (MOT) in Europe, the U.S., and other
destinations is proving effective. Every 100,000 tourists
creates 4,000 new jobs and contributes USD 200 million to the
GDP, Hirchson claimed. He noted that in the first six months
of 2005, tourism helped create 6,000 new jobs.
--------------
The Skies May Be Opening
--------------
7. (U) The 2006 Arrangements Bill, presented to the Cabinet
on August 9, contained an "open skies" clause. Former
Finance Minister Binyamin Netanyahu and Hirchson were in
favor, with Netanyahu seeing this as strengthening
competition and Hirchson arguing that it is a stimulus for
increasing tourism. Opposition by the Minister of
Transportation led to a compromise in which authority for
licenses to fly to Israel remains in the hands of the
Ministry of Transportation.
8. (U) The Minister of Transportation must consult with a
"professional" committee that will be made up of the
Director-Generals from tourism, aviation, finance, and the
Prime Minister's office. The opinion of the committee will
be presented to the Minister of Transportation within 30
days. In addition, the Transportation Minister will have to
consult with the Tourism Minister before reaching a decision.
9. (U) In a related story, Hirchson stated that the tourism
sector is expected to blossom in light of the change in the
law. He said that it would encourage competition and open
Israel's skies to new entrants on the Israeli market. He
noted that the Ministry of Tourism (MOT) is pleased with the
government's decision, and that the citizens of Israel will
enjoy fair competition and lower-priced air tickets.
--------------
Las Vegas In Eilat
--------------
10. (U) In May, Netanyahu said he would work toward
legalizing gambling. In June, it was reported that Sheldon
Adelson, a Jewish philanthropist and a strong supporter of
Israel, said that he would commit USD 1 billion to develop
casinos in Eilat, if the GOI legalizes gambling. Hirchson
joined Netanyahu's effort, and said he hoped to present a
bill legalizing gambling by the end of the year, with the
hope that a casino would be up in 18 months. In this regard,
the Tourism Minister traveled to Las Vegas in June. Those in
favor say that casinos would boost tourism, provide jobs,
bring in foreign currency, and provide a boost to the
economy. They claim that legalizing gambling in Israel would
prevent the "export" of millions of dollars in foreign
currency.
--------------
Tourism in The 2006 Budget
--------------
11. (U) Tourism is listed as one of the priorities for growth
in the 2006 budget, with particular emphasis on Jerusalem and
the Negev. The budget indicates that in order to accelerate
incoming tourism, a sum (not stated in the budget
presentation) be allocated to the MOT in 2006. The amount
will be determined by a team with members from the MOT, the
Budget Division in the MOT, and the Prime Minister's office.
12. (U) In order to encourage tourism to Jerusalem, and
specifically the Old City, the budget states that NIS 10
million will be allocated within the MOT budget, from 2006 to
2012, with the participation of the Prime Minister's office
budget, to finance a tourism plan for the Old City. Within
the plan for developing the Negev, there are also amounts
allocated for tourism - NIS 20 million for marketing, and NIS
25 million for tourism infrastructure.
--------------
Medium Term Plans: Israel Turns 60 in 2008
--------------
13. (U) The GOI is also thinking about plans for developing
tourism for the 60th anniversary of the state of Israel, in
2008. According to the MOT, tens of millions of shekels are
to be allocated by the Tourism and Housing Ministries. The
Ministry of Housing will be responsible for developing
infrastructure of towns, and the MOT will be responsible for
rehabilitating sites through the company for infrastructure
development, and marketing it to the public.
--------------
Non-Jewish Tourism to the Holy Land
--------------
14. (U) In recent tourism news, China recognized Israel as a
major tourism destination. The MOT said this is a dramatic
development and has tremendous significance. The MOT said
that in light of the Chinese government's decision, they are
asking El Al to increase the number of flights from Beijing
to more than once a week. The MOT reports 3,000 Chinese
arrivals in 2004, significantly lower than the height of
Chinese tourism in 2000, which saw 12,000 Chinese tourists
come to Israel.
********************************************* ********************
Visit Embassy Tel Aviv's Classified Website:
http://www.state.sgov.gov/p/nea/telaviv
You can also access this site through the State Department's
Classified SIPRNET website.
********************************************* ********************
KURTZER