HOTELS
ROOMS1
BASIC INDICATORS OF TOURISM AND HOTELS, SELECTED YEARS
0991
0111
0110-0112
average
0112
Population (millions, end of year)
8.4
4.8
4.4
4.8
Tourists arrivals (millions)
3.1
4.8
3.1
4.4
Rooms in tourist hotels
(thousands, end of year)
11
84
84
84
Room occupancy (%)
64
41
86
44
33.8
3..6
38..
43.4
63
8.
44
84
Person-nights in tourist hotels total (millions)
Thereof: tourist person-nights
(as a percentage of all personnights)
In 2004, there were 336 tourist hotels in Israel (i.e., hotels registered by the Ministry of
Tourism). Those hotels had approximately 44,000 rooms (76% of all accommodation rooms).
Since 1990, the number of rooms in tourist hotels has increased by over 50%. Other rooms
were in non-tourist hotels (6%), rural tourism accommodations (14%), youth hostels (2%),
Christian hostels (2%), and in field schools (1%).
The average number of rooms in tourist hotels increased from 34 at the beginning of the
1960s, to 141 in 2008.
In tourist hotels, the average number of beds per room is 2.5, compared to 3.7 in rural
tourism accommodations, field schools, and youth hostels.
More than one-third of all rooms in tourist hotels are in the Southern District (including Elat
and the Dead Sea shore). The rest are evenly distributed between the Jerusalem District, the
Haifa and Northern districts, and the Tel Aviv and Central districts. By comparison, nearly
80% of the rooms in rural tourism are in the Haifa and Northern districts.
1
Including rooms temporarily closed (approximately 7% of all rooms on average in 2000-2008).
- XXX -
1. ROOMS IN TOURIST HOTELS, BY DISTRICT
1990, 2008
18
16
Thousands
14
12
10
8
6
4
2
0
Southern
District
Jerusalem
District
Northern
District
Tel Aviv
District
1990
Haifa
District
Central
District
2008
Until 1996, the largest number of hotel rooms was in Jerusalem. Since 1997, the largest
number of rooms is in Elat.
2. ROOMS IN TOURIST HOTELS IN SELECTED LOCALITIES
1990, 2008
12
Thousands
10
8
6
4
2
0
Elat
Jerusalem
Tel AvivYafo
Dead Sea
shore
1990
- XXXI -
Tiberias
2008
Haifa
Netanya
PERSON-NIGHTS
In 2008, there were 21.6 million person-nights in tourist hotels. This was the highest number
recorded since the establishment of the state – 5.5% higher than the previous peak (20.5
million) in 2007.
Person-nights in tourist hotels comprise more than 80% of the total person-nights in all
accommodation units.
In 2008, there were 10.2 million tourist person-nights – a record number, and an increase of
21% compared with 2007. The previous record number was in 2000 – 9.7 million. Between
1990 and 2008, there were fluctuations in the number of tourist person-nights. The most
significant fluctuation occurred in 2001-2003, when there was a sharp decline in tourist
person-nights due to terror attacks.
The number of Israeli person-nights rose steadily from 1990 to 2002 – from 5.6 million to 12
million, and remained stable until 2006 (12.5 million). Since then, the number of Israeli
person-nights has declined, and reached 11.4 million in 2008. The fluctuations in the number
of tourist person-nights were accompanied by fluctuations in the proportion of tourist personnights out of all person-nights. In the 1990s, tourist person-nights comprised more than 50%
of all person-nights; in 2001-2004, the proportion declined to less than 25%. Afterwards, the
proportion rose again to 36% in 2005-2006, 41% in 2007, and 47% in 2008.
3. PERSON-NIGHTS AT TOURIST HOTELS
1990-2008
25
15
10
5
Israelis
Tourists
- XXXII -
total
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
0
1990
Millions
20
Millions
4. PERSON-NIGHTS AT TOURIST HOTELS, BY DISTRICT
2008
8
7
6
5
4
3
2
1
0
Southern
District
Northern
District
Jerusalem
District
Israelis
Tel Aviv
District
Haifa
District
Central
District
Tourists
Nearly half (49%) of all Israeli person-nights in 2008 were in Elat. About 60% of the tourist
person-nights were in Jerusalem and Tel Aviv-Yafo (35% and 21%, respectively).
5. PERSON-NIGHTS AT TOURIST HOTELS IN SELECTED LOCALITIES
2008
6
Millions
5
4
3
2
1
0
Elat
Dead Sea
shore
Tiberias
Jerusalem
Israelis
Tel AvivYafo
Haifa
Netanya
Tourists
In rural tourism accommodations, which are mainly in the northern region, there was an
overall decline in person-nights as a result of the Second Lebanon War. In 2007, there was a
recovery (an increase of 7% in overall person-nights and 20% in tourist person-nights
compared with 2006), which continued in 2008 (an additional increase of 3% in overall
person-nights and 29% in tourist person-nights compared with 2007).
- XXXIII -
ROOM OCCUPANCY1
In 2008, room occupancy in hotels reached 66% - the highest rate since 1996. From 1997 to
2000, average annual room occupancy was 61%; from 2001 to 2003, average room
occupancy reached an all-time low of 45%, and since then the rates have increased.
6. ROOM OCCUPANCY IN TOURIST HOTELS
1990-2008
80
70
Percentages
60
50
40
30
20
10
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
0
In 2008, room occupancy ranged from 58% in the Northern District to 74% in the Tel-Aviv
District.
In Haifa, Tiberias, Jerusalem, Netanya, the Dead Sea Shore, and Tel Aviv-Yafo, room
occupancy was higher in 2008 than in 2000. In Elat, room occupancy was slightly lower.
7. ROOM OCCUPANCY IN TOURIST HOTELS, BY DISTRICT
SELECTED YEARS
80
70
Percentages
60
50
40
30
20
10
0
Tel Aviv
District
Southern
District
2000
1
Jerusalem
District
Central
District
2001-2003 (average)
Haifa
District
Northern
District
2008
The calculation of room occupancy does not include hotels that were temporarily closed.
- XXXIV -
8. ROOM OCCUPANCY IN TOURIST HOTELS IN SELECTED LOCALITIES
SELECTED YEARS
80
70
Percentages
60
50
40
30
20
10
0
Tel AvivYafo
Dead Sea
shore
Elat
2000
Haifa
Jerusalem
2001-2003 (average)
- XXXV -
Netanya
2008
Tiberias
REVENUE1 AND EMPLOYMENT
In 2008, the revenue of hotels reached a peak of NIS 7.8 billion – 5% higher than the
revenue in 2007 (NIS 7.5 billion). Revenue from tourists reached a peak of NIS 3.4 billion in
2008, exceeding the previous record of NIS 3.2 billion in 2000. In 2008, revenue from
Israelis2 was NIS 4.5 billion – similar to 2007, and higher than in previous years.
9. REVENUE OF TOURIST HOTELS
(In 2008 prices, adjusted for the general Consumer Price Index)
2000-2008
8
NIS Billions
7
6
5
Israelis
4
Tourists
3
2
1
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
In 2008, the share of revenue from tourists amounted to 43% of the total revenue, close to
the share of revenue from tourists in 2000 (45%). During the slump period in 2001-2004, the
average share of revenue from tourists amounted to 26% of all revenue; in 2005-2006 it rose
to 37%, and in 2007 it reached 40%.
The average revenue per tourist person-night was 93 dollars, and average annual revenue
per room was 47,000 dollars.
Approximately 37% of the revenue of tourist hotels was obtained from hotels in Elat and the
Dead Sea shore, and approximately 34% was obtained from hotels in Jerusalem and Tel
Aviv-Yafo.
1
In 2008 prices, adjusted for the general CPI.
2
Revenue from Israelis also includes revenue from various activities at hotels, such as events and
conferences.
- XXXVI -
10. REVENUE OF TOURIST HOTELS IN SELECTED LOCALITIES
2008
Other localities
21%
Jerusalem
18%
Dead Sea Shore
11%
Tiberias
6%
Tel Aviv-Yafo
18%
Elat
26%
In 2008, revenue from rural tourism amounted to about NIS 444 million – a 12% increase
compared with 2007 (NIS 398 million in 2008 prices). The average price per person-night in
rural tourism accommodations was NIS 196 – NIS 181 in kibbutzim and collective moshavim,
and NIS 218 in private rural accommodations.
In 2008, about 26,500 people were employed in hotels, and additional 5,700 workers were
hired by employment agencies. In recent years, the number of workers hired by employment
agencies has increased – from 16% of all persons employed in hotels in 2006-2007, to 18%
in 2008.
The average wage per hotel employee was NIS 6,000, whereas the average wage per
worker hired by an employment agency was NIS 4,800.
- XXXVII -
INCOME, EXPENDITURE AND PROFIT1
In 2008, the profit of tourist hotels (surplus of income over expenditure)2 reached NIS 1.6
billion – over 20% of their income.
The income of tourist hotels derives from rental of rooms (about 50%), from food services for
hotel guests and outside clients (about 40%), and from other sources such as operation of
stores and clubs, and organization of events and conferences (about 10%).
Expenditures consist of labour costs (40%-45%), purchase of food (12%-16%), and other
components such as operating costs, administrative costs, taxes, rental, and publicity.
Food purchases constitute approximately 35% of the income from food, with the rate ranging
from about 30% in high-level hotels to about 50% in popular hotels.
Expenditures for taxes, fees, and insurance comprise approximately 6% of the total
expenditure (regardless of the level of the hotel); expenditures for publicity and sales
promotion comprise approximately 3%; expenditures for culture and entertainment teams
comprise approximately 1.5%; and expenditures for management comprise approximately
1.5% (ranging from 0.8% in popular hotels to 1.7% in high-level hotels).
11. EXPENDITURES OF TOURIST HOTELS AS A PERCENTAGE OF INCOME
2006
Management and
taxes, rent and
publicity
14%
Labour costs
34%
Profit
18%
Food
12%
Operating
Expenditure
22%
Between 1991 and 2000, there was a steady increase in the revenue of hotels, accompanied
by a concomitant increase in expenditures. During that period, the profits of hotels ranged
from 10% to 19% of their income.
During periods of crisis in tourism, the income of hotels declines more rapidly than their
expenditures. When a crisis begins, reservations are immediately cancelled. However,
1
The last survey was carried out for 2006. For 2007-2008, estimates were calculated.
2
In 2008 prices, adjusted for the general CPI.
- XXXVIII -
expenditures – particularly labour costs – do not decline as fast. In 2001, the income of
hotels dropped by 25%, whereas expenditures dropped by only 18%.
In 2002, income and expenditures dropped by 11% each. The share of profit out of the total
income dropped from 12% in 2000 to approximately 4% in 2002. Between 2003 and 2008,
income and expenditures increased, but the increase in income was more rapid. This
phenomenon is indicative of recovery.
12. INCOME, EXPENDITURES AND PROFIT OF TOURIST HOTELS
(At basic prices, 2008 prices)
1981-2008
8
7
5
4
3
2
1
Income
Expenditures
- XXXIX -
Profit
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
0
1981
NIS Billions
6