NEW YORK (Feb. 26)
Israel is rapidly building first-class hotels in anticipation of record tourist seasons to come, it was reported today by the Jewish Agency’s economic department here.
Twenty-five first-class hotels are under construction or have been completed since 1949, the report said. “Israel can now offer tourist hotel accommodations equal to those in other favored tourist countries. Many of the new hotels are in the luxury category. Their rates are considerably lower than those in the U.S. for comparable accommodations, and are on a plane with European rates. The foreign investment in Israel’s new hotels already totals some $10,000,000.”
Despite the new construction, Israel still requires an additional 1,500 first-class hotel rooms, the report revealed. To remedy this, the Israel Government has offered land suitable for hotel construction in Galilee and other parts of the country. The Tiberias Development Company, which owns the concession at the famous hot springs, is prepared to participate in financing a new hotel near the thermal baths, the report said.
“The cost of hotel construction in Israel is considerably lower than in the U.S. and Europe because labor, which represents an important cost factor, is relatively inexpensive there,” the report pointed out. “A fully air conditioned first-class hotel in Israel would cost between $9,00 and $12,000 per room compared to $14,000 to $18,000 per room for a similar hotel in the United States.”