Israel's hotel market is expected to see another (second) year of strong growth as the number of visitors to the country continues to rise, according to hospitality consultancy HVS. Hhotel Management.
In 2017, the state hosted more than 3.6 million tourists, which is almost 25 percent more than in 2016. Against this backdrop, the average hotel occupancy rate increased across the country from 67 to 73 percent.
Most tourists visiting Israel come from the United States, Russia, and France. Meanwhile, the number of visitors from Germany, China, Poland, and Romania is also growing.
HVS predicts a positive future for the Israeli hotel market, as the country is set to become an even more accessible and popular destination in the near future.
“Last year, for the first time in Israel’s history, the number of visitors reached three million,” Russell Kett, chairman of HVS, said in a statement“The driver of this growth was a combination of geopolitical stability, successful marketing, a large-scale celebration of the 50th anniversary of the reunification of Jerusalem, and the introduction of additional air routes.”
Thus, in Jerusalem, the number of overnight stays in hotels by foreign tourists increased by more than 30 percent, in Haifa by 28 percent, in the Dead Sea region by 22 percent, and hotels in Eilat increased by 16 percent.
As a result, hotels in Israel saw their ADR (average daily rate) increase from $203 in 2016 to $209 in 2017. RevPAR (average revenue per available room) also increased by 11 percent during this period, reaching $$151.
A government grant scheme offering additional opportunities for investors has contributed to increased investment in Israeli real estate. Approximately 35 projects received grants totaling approximately $50 million last year. These incentives enabled the addition of approximately 2,570 additional rooms to the total hotel inventory, a 33 percent increase over the previous year.
“All of this suggests that investors are showing great interest in the Israeli market and are confident in it and the strength of its potential,” — the expert added.
According to Russell Kett, The country's hotel sector today mainly consists of five-star and four-star hotels, with the boutique hotel segment growing.
“However, as Israel celebrates 70 years since its founding this year, the country’s hotel sector is expected to become much more vibrant and diverse than it is now, as both local and international hotel operators strengthen their presence in the destination,” he added. Lionel Schauder, HVS representative.
According to the expert, budget hotels and hostels remain untapped markets. Meanwhile, low-cost airlines have already become the norm in the country, meaning growth in this sector is not far off.
Source: trn-news.ru
