Study: Hotels in Israel enjoying record demand, increased revenues

Study: Hotels in Israel enjoying record demand, increased revenues

Hotels in Israel enjoyed another record year in 2018, driven by unprecedented incoming tourism and increased geo-political stability, according to a new report by hospitality consulting firm HVS, reports Trend citing to Reuters.

Revenue per available room (RevPAR) for the country increased by 6% in 2018, driven by an increase in average hotel rates across all major destinations. Eilat and Dead Sea hotels, the report stated, witnessed a "slight reduction" in occupancy levels last year.

"Thanks to the continued lull in the turbulence of the geo-political situation in the area, the Israeli tourism industry is flourishing with an ever-growing number of tourists visiting the country," said report authors Lionel Schauder and Russell Kett. "However, it is important to remember that the 'sword of Damocles' remains suspended and that any incidents may halt this positive development."

More than 4.1 million tourists visited Israel in 2018, an increase of 14% from 2017 and 42% from 2016, according to the Ministry of Tourism. Direct revenues from tourism exceeded NIS 24 billion ($6.83b.).

Total demand growth for hotel rooms has outpaced supply growth in recent years, with demand increasing over the last three years by 6.7% year-on-year and rooms supply growing by 2.9%. Additional accommodation is needed, the report stated, especially at the budget end of the spectrum.

Hotels in Jerusalem recorded an increase of 10% in demand in 2018, driven primarily by the international market which represented 80% of total hotel stays in the city. Additional rooms in the hotel pipeline stand at approximately 16% of Jerusalem's current room supply. Several major brands are set to open hotels in the city over the next few years, including InterContinental, Isrotel and Fattal.

In Tel Aviv, the number of bednights increased by 7.2% in 2018, also driven by the international market which grew by more than 7.5% and represented approximately three-quarters of total demand. Although a number of projects remain speculative, the pipeline stands at approximately 56% of current room supply, including the entrance of luxury brands Kempinski and Nobu into the growing market.

Marketwide occupancy decreased slightly in Eilat in 2018, although the opening of the nearby Ramon Airport earlier this year is expected to increase foreign demand in the coming years. While hotel supply has not changed over the last six years, a decision by the Government Housing Cabinet in recent weeks will enable the construction of over 1,200 hotel rooms in the area. Current room supply is expected to increase by approximately 8%.

Demand in Haifa remained broadly static in 2018 at approximately 582,000, but the report states that the city is "consolidating its international attractiveness" with the share of international bedsights at 48%, well above historical levels of around 41-42%. Room supply has remained broadly static in recent years, but a number of large properties are rumored to be entering the market, potentially boosting current room supply by 30%.

The Dead Sea was the only market reviewed to record a negative compound annual growth rate in bednights between 2014 and 2018. A total of 8% of all bednights in Israel were spent in the area, however, demonstrating its ongoing popularity as a destination, primarily for domestic visitors. International market share increased from 19% in 2015 to 26% in 2018, the report stated. The pipeline of additional rooms at the Dead Sea stands at approximately 11% of its current supply, although the Dead Sea Valley Project could add some 3,000-5,000 rooms in Ein Bokek.

"The pipeline across the country has never been so strong with a number of international operators looking to enter or strengthen their presence in Israel," said Schauder and Kett. "In addition, the development of more affordable hotels is finally on the way - WOM Allenby (Brown Hotels is the first pod-style hotel in Tel Aviv."

The report also highlights a series of initiatives launched in 2016 by the Ministry of Tourism to boost hotel investment and make the country a more affordable destination. Measures including recognizing hotels as part of the national infrastructure, a centralized application process for permits handled by the National Infrastructure Committee, a government grant scheme to support developers, and enabling district committees to grant additional residential rights to hotel developers - thereby improving the attractiveness of the investment.

"Although the recent Eurovision contest did not generate a significant RevPAR uplift (as it tends to do), results from the first half of 2019 indicate that once again the country could break a new arrivals record," said the authors. "If the positive trend is set to continue, the next main challenge awaiting hoteliers will be to attract returning visitors, and to do so the overall service level is likely to require some significant improvements in order to meet guests' expectations."

Building on two consecutive record-breaking years of incoming tourism, 2.587 million tourists entered Israel between January and July 2019, compared to 2.356 million during the same period in 2018.

Almost half (49%) of all tourists arrived in Israel from the United States (580,000 tourists), France (207,000), Russia (174,000), Germany (165,000) and the United Kingdom (132,000).

Value of Iran’s exports grows
Value of Iran’s exports grows
Solar panel stations launched in Iran's Kerman Province
Solar panel stations launched in Iran's Kerman Province
Azerbaijan starts construction of infrastructure of Horadiz-Aghband railway
Azerbaijan starts construction of infrastructure of Horadiz-Aghband railway
Loading Bars
Latest
Value of Iran’s exports grows
Solar panel stations launched in Iran's Kerman Province
France decreases imports of Kazakh-made foods y-o-y
Azerbaijan starts construction of infrastructure of Horadiz-Aghband railway
SMEs dominate Kazakh exports to EAEU
Azerbaijan starts work to prepare tourist routes in liberated territories
Lending via credit letters in Azerbaijan shrinks
Kazakhstan boosts imports of Turkish chemicals
Design work at Uzbekneftegaz GTL plant completed
Azerbaijan names volume, amount of oil supplies to Spain from early 2021
OMV Petrom completes selling off its subsidiaries in Kazakhstan
Preparations for 2021 F1 Azerbaijan Grand Prix nearing completion in Baku
World Bank to finance development of water services sector in Uzbekistan
Turkey doubles crude oil imports from Kazakhstan
Monday.com files for Nasdaq IPO
Armenian ex-minister of transport & communication detained
Georgia reports 1,562 coronavirus cases for May 18
Georgia sees increase in number of cattle
World Bank to assist Uzbekistan in modernization national innovation system
Turkey records 4M2021 decrease in number of labor migrants to Azerbaijan
Azerbaijan working on introduction of AI in public administration system
Kazakhstan's revenue from passenger air transport increases
Azerbaijan discloses 4M2021 data on gas exports to Turkey
Turkmenistan considering possibility of expanding co-op with transport companies of Russia’s Tatarstan
UK company eyes projects on territory of free economic zones of Uzbekistan
No new oil, natural gas fields required amid net-zero emission activity– IEA
Uzbekistan to use Hungarian experience to stimulate socio-economic dev’t of several regions
Georgia, Ukraine pledge to enhance co-op on path to Euro-Atlantic integration
Kazakhstan boosts exports to Spain despite COVID-19
Net-zero emissions to require huge amounts of new infrastructure
Kazakhstan announces 4M2021 investments attracted amid economic recovery
Turkey reports increase in 4M2021 clothes exports to Kazakhstan
Prices of precious metals in Azerbaijan grow
Belarusian Defense Minister arrives in Azerbaijan on official visit
Azerbaijan issues data on oil exports to Italy for 4M2021
Kazakhstan’s Oil Construction Company opens tender to buy pipes
Banks in CIS region vulnerable to high credit risks - S&P
Iran Tobacco Company discusses cigarette market
Turkey discloses 1Q2021 volume of cargo shipment via Botas port
Turkmenistan, Kyrgyzstan interested in expanding partnership in various sectors
Georgia sees increase in wine export
Azerbaijan sees increase in oil prices
Azerbaijani currency rates for May 18
Iranian currency rates for May 18
UAVs conducting reconnaissance during Azerbaijan's military exercises (VIDEO)
World Bank to assist Uzbekistan in dev’t of strategy for promotion export products
Qatari company eyes to co-op with Uzbekistan in creation of modern greenhouses
US Lawmakers Introduces Resolution To Support India During Covid Crisis
Digital twins becoming integral part of oil & gas operations
India Inc's foreign investment jumps over two-folds to $2.51 bn in Apr'21
Indian FDI hits all-time high in FY21; forex reserves jump over $100 bn
Uzbekistan’s 1Q2021 share of small business in industrial production revealed
Central Bank of Iran injects liquidity into banks
Sputnik V's Limited Rollout Begins In Hyderabad, Visakhapatnam Tomorrow
Immediate de-escalation need of the hour: India on escalating tensions between Israel and Gaza
Second batch of Russian Covid-19 vaccine reaches Hyderabad
Uzbek-Chinese JV opens tender for material for repairing defect in main gas pipeline
Biggest-ever consignment of over 3,600 oxygen concentrators lands in Delhi from China
Will Keep Providing Assistance To India In Fight Against Covid: US
India’s Covid-19 2nd wave ‘slows’
Russian, Chinese leaders to attend ceremony to build nuclear energy project
Air raid sirens sound in southern Israel
TAP offering three expansion scenarios
Uzbekistan reveals COVID-19 data for May 18
Oil rises as U.S., Europe reopen economies
Georgian ATC launches new projects
Baku one of most beautiful, warmest cities - famous Kazakh writer Olzhas Suleimenov
TAP reveals gas transportation volume since start
US presidential advisor phones Azerbaijani president
U.S. gas stations still shut, prices at 7-yr high in slow recovery from cyberattack
Georgia introduces new tax initiatives
Georgia, China discuss prospects for further deepening cooperation in various fields
Georgia, Ukraine and Moldova to boost security and defense co-op with EU
Finland offers Azerbaijan knowhow in ports industry
Georgia may adjust budget for 2021 - Minister of Finance
Georgia plans to revise its 2021 economic growth forecast
Tourism in Georgia recovering faster than expected - Minister
DSK Bank provides short-term loan for IGB
Georgia plans to open land borders
USAID, Gazelle Finance to allocate funds for Georgian SMEs
MTBS to update business model for Georgian Anaklia deep seaport project
TAP launches binding phase of its market test
Aide to Azerbaijani president met with EU Commissioner
Amazon considering buying MGM Studios
US, EU to start talks on steel tariffs imposed during Trump administration
Int'l consulting company MTBS to update freight forecast, business model for Anaklia project
Turkey’s budget balance posts $772 mln surplus in Jan-April
Managers of Kazakhstan’s large companies expected to arrive in Tajikistan
$1.7bn contract signed with local co. to develop Farzad B
Honeywell says Industry 4.0 to enable quick return to growth post-COVID (INTERVIEW)
Brunei imposes int'l travel ban to 4 more countries
US residential energy use falls 4 pct in 2020 - EIA
Biden administration approved $735 million arms sale to Israel
Int'l transactions in securities generate net fund outflow from Canada in March
Portuguese scientists create bactericidal varnish
UN agency to provide 706,000 USD to help South Sudan farmers reduce COVID-19 impact
Italy shortens COVID curfew, eases other restrictions
Aeroflot removes all June tickets to Turkey from sale except for two flights - airline
Ryanair posts record annual loss, hopes to break even this year
Turkey reports over 10 170 COVID-19 cases
All news