JERICHO RESIDENTS REPORT INCREASE IN TOURSIM BUT

C O N F I D E N T I A L JERUSALEM 001982 SIPDIS NA/IPA FOR HOLMSTROM/LENTZ; NSC FOR PASCUAL; TREASUY FOR AHERN; DEPT PLEASE PASS TO USAID FOR ANE/MA MCCLOUD/BORODIN E.O. 12958: DECL: 10/29/2018 TAGS: ECON EFIN KWBG EAID ETRD PGOV IS SUBJECT: JERICHO RESIDENTS REPORT INCREASE IN TOURSIM BUT STILL COMPLAIN ABOUT CHECKPOINTS Classified By: Consul General Jake Walles, for reasons 1.4(b) and (d). ¶1. (C) Summary: Tourism is on the rise in the Jordan Valley city of Jericho, according to city officials and local business representatives. However, they also claim that Israeli checkpoints and poor infrastructure (including an over-taxed sewage system that poses environmental and health hazards) limit the city's economic growth. ConGen contacts expressed frustration that residents have not seen any relaxation of access restrictions, despite the fact that there have been no significant security incidents in Jericho in more than a year and a half. They maintain that no other factor affects commercial activity and private sector development as directly and as negatively. End summary. Tourism Growing... -------------- ¶2. (C) Jericho Mayor Hassan Salih Husayn told Econoffs on October 23 that Jericho's excellent security situation has led to a notable increase in Palestinian and foreign tourists this year. He anticipated the numbers to increase further as winter approaches, and noted many Palestinians in other West Bank cities have "winter homes" in Jericho. Chamber of Commerce members confirmed an uptick in visitors, but noted that foreign tourists visit Jericho from Jerusalem and stay only a few hours, while Palestinian visitors come to watch soccer matches or swim and tend to stay overnight. (Note: Jericho has one modern luxury hotel, the Intercontinental. End note.) ...But Limited by Checkpoints -------------- ¶3. (C) Access in and out of Jericho is restricted. One prominent businessman, Kamel Sinokrot, estimated that commercial activity in Jericho would increase by 60 percent if the GOI removed the roadblock of Jericho's access to Route 90, the main north/south Jordan Valley highway. Contacts noted that Jericho is effectively sealed on three sides. Visitors and tour buses must enter and exit the city through a single checkpoint, and tour buses with Israeli plates are required to transfer passengers to Palestinian buses. (Note: Tourism contacts and UNOCHA confirmed this rule; however, Econoffs observed a number of buses with Israeli plates at a Jericho restaurant and shopping area, and received informal reports that such buses frequent Palestinian establishments that have good relations with Israeli checkpoint officials. End note.) ¶4. (C) Jericho Chamber of Commerce members say their observations of security procedures at the checkpoint reinforce their belief that movement restrictions remain in place to confine economic growth rather than ensure security. They say that soldiers often turn the checkpoint into a "one-way" operation -- dealing exclusively with cars entering for a period of time, and then blocking the entrance to deal with cars exiting, only briefly examining the IDs of those passing through. Getting out of Jericho on weekends and holidays can take as long as three hours, and tourism contacts say fights often break out between drivers waiting in line, which dissuades return visitors. Infrastructure woes -------------- ¶5. (C) Jericho's mayor requested assistance in persuading the Palestinian Authority to prioritize improvements in Jericho's infrastructure to handle the city's growth, attract more tourists, and reverse potentially harmful living conditions. He noted that Jericho does not have a modern sewage system, and the city's reliance on an antiquated sewage treatment process poses environmental and health risks. The mayor also expressed frustration with the GOI's refusal to allow expansion of a dumping site in Area C. He also claimed that Israeli water company, Mekorot, controls about 80 percent of Jericho's water supply and redirects much of it to nearby settlements. This redirection, he said, combined with Jericho's growing consumption, sparked water shortages this summer that are likely to worsen next year. WALLES