Hotels in israel

HOTELS

ROOMS

In 2007 there were in Israel 331 tourist hotels (hotels registered at the Ministry of Tourism), with approximately 47,000 rooms – 76% of all accommodation rooms. Accommodation rooms also include rooms in hotels which are not tourist hotels, rooms in rural tourism, in youth hostels and in field schools.

Since 1990, the number of rooms in tourist hotels has increased by more than 50%.

The average number of rooms in tourist hotels increased from 34 at the beginning of the 1960’s to 141 in 2007.

In tourist hotels, the average number of beds per room is 2.3, compared to 4 in rural tourism, field schools and youth hostels.

More than a third of all rooms are in the Southern District (including Elat and the Dead Sea shore). The rest of the rooms are distributed almost equally among the Haifa and Northern Districts, the Tel Aviv and Central Districts, and the Jerusalem District. By comparison, approximately 80% of the rural tourism rooms are in the Haifa and Northern Districts.

Until 1996, Jerusalem had the highest number of hotel rooms; since 1997 it is Elat.



PERSON-NIGHTS

The number of person-nights in 2007 – 20.5 million – was the highest ever recorded in Israel. The previous peak – 19.5 million person-nights – was in 2000.

Person-nights in tourist hotels comprise about 80% of all person-nights in all accommodation units.

In 1990-2007 there were fluctuations in the number of tourist person-nights;

During 1990-2007, there were fluctuations in the number of tourist person-nights, the most significant being sharp drop during 2001-2003, following several terror incidents. Despite that, the number of Israeli person-nights rose almost consistently until 2002, and then stabilized. The share of Israeli person-nights out of all person-nights in the 90’s was less than 50% on average, and rose to more than 75% on average during 2001-2004. During 2005-2006 the percentage of tourist person-nights rose to 36% of all person-nights. In the first half of 2006 a rise of more than 30% was recorded in the number of tourist person-nights. This rise was cut short in the second half of 2006, due to the Second Lebanon War. In 2007, for the first time since the end of the second Intifada, the number of tourist person-nights rose to over 40% (8.4 million) and was 23% higher than in 2006,

Nearly half (48%) of all Israeli person-nights in 2007 were in Elat. About 60% of the tourist person-nights were in Jerusalem and Tel Aviv-Yafo (35% and 24%, respectively).

Rural tourism, located mostly in the north of Israel, suffered from the Second Lebanon War in the summer of 2006. In 2007 a recovery took place – a 7% increase in all person-nights and a 20% increase in tourist person-nights, compared to 2006.
ROOM OCCUPANCY¹


In 2007 the room-occupancy of hotels reached 62%. This is the highest rate in recent years (in 2005-2006 – 58%, in 2004 – 51%, and in 2001-2003 – 45%).

Occupancy in 2007 ranged between 53% in the Northern District and 73% in Tel Aviv District. Compared to 2006, it was higher in all districts, except for a small drop in the Southern District, where many Israelis stayed during the Second Lebanon War in 2006.

In most cities the occupancy in 2007 was similar to that of 2000; in Tel Aviv-Yafo and in additional cities it was even higher than in 2000.


REVENUE¹ AND EMPLOYMENT

In 2007 the revenue of hotels amounted to NIS 7.2 billion, higher than ever before (in 2000 it was NIS 6.6 billion). In 2007, the revenue from tourists almost reached that of 2000, and the revenue from Israelis² was 20% higher than that of 2006.

The revenue in 2007 was 9% higher than in 2006 – the revenue from Israelis was 3% higher and the revenue from tourists was 19% higher.

In 2007 the share of the revenue from tourists out of all revenue, was 40%. In 2001-2004 it was an average of 26% of all revenue, and in 2005-2006 – 37% (in 2000 the revenue from tourists reached 45%).

Nearly 37% of the revenue of tourist hotels came from hotels in Elat and the Dead Sea shore, and approximately 36% from hotels in Jerusalem and Tel Aviv-Yafo.

The revenue from a tourist-night was $83; from a room – $38,000.

In 2007, revenue from rural tourism was about NIS 380 million – a 15% increase as compared to 2006. The average price for a person-night in rural tourism was NIS 174, in kibbutzim and collective moshavim – NIS 161, and in a private rural accommodation – NIS 191.

In 2007, about 26,000 people were employed in hotels (excluding workers hired by employment agencies) – a 4% increase compared to 2006, but a 17% decrease compared to 2000 (following the tourism crisis, hotel workers were laid off).

INCOME, EXPENDITURE AND PROFIT¹

In 2007, the profit of tourist hotels (surplus of income over expenditure)² amounted to more than NIS 1.1 billion – about 16% of the income.

The income of tourist hotels is obtained from rental of rooms (approximately 50%), from food services for hotel guests and outside clients (approximately 40%), and from other sources such as operation of stores and clubs, and organization of events and conferences (approximately 10%).

Expenditures consist of labour costs (40%-45%), purchase of food (12%-16%), and other components such as: operating and management costs, taxes, rental, and advertising.

Food purchases constitute on average 35% of the income from food, with a rate ranging from approximately 30% in high-level hotels to approximately 50% in popular hotels.

Of total expenditures, those on taxes, fees and insurance comprise approximately 6% (regardless of the level of the hotel); on publicity and sales promotion, approximately 3%; on culture and entertainment teams, approximately 1.5%; on management, approximately 1.5% (between 1.7% in high-level hotels and 0.8% in popular hotels).

Between 1991 and 2000, there was a steady increase in the revenue of hotels, accompanied by a concomitant increase in expenditures. During that period, hotel profits ranged from 10% to 19% of income.

During periods of crisis in tourism, the income of hotels declines more rapidly than the expenditures. When a crisis begins, reservations are cancelled. However, expenditures – particularly labour costs – do not shrink as fast. In 2001, the income of hotels dropped by one-fourth and the expenditures only by 18%.

In 2002, income and expenditures dropped by 11% each (the profit dropped from 12% in 2000 to nearly 4% in 2002). In 2003-2005 the income and the expenditures grew and the increase of the income was more steep - a phenomenon which characterizes recovery. In 2005 the profit comprised 16% of the income, in 2006 the profit dropped to 14% of the income (the Second Lebanese War took place in July-August 2006), but in 2007 the profit reached 16% of the income again.

1 Excluding hotels temporarily closed.

1 In 2007 prices.

2 The revenue from Israelis also includes revenue from different hotel activities, such as events and
conferences.

1 The last survey was carried out for 2005. For 2006-2007, estimates were calculated.

2 In 2007 prices.

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