Israel Tourism Boom Pinches Tour Operators

Tourism to Israel is booming but that success is coming at a cost to tour operators, who are scrambling to find enough rooms for their group business.

“It’s not the security situation limiting the number of tourists visiting Israel, but rather the infrastructure,” said Yossi Fattal, head of Israel’s Incoming Tour Operators Association, according to Haaretz.com, a daily publication in Israel.

In particular, tour operators are reporting a squeeze during April through June 2018, and another one next fall.

The popularity of Israel, which has seen visitor numbers increase by 24 percent over last year, means that hotel rates are also climbing. Experts predict travelers can expect to see a rate bump of 10 to 20 percent by the end of next year.

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Even still, Fattal says travelers are willing to pay the price.

"The fact is we’re seeing more and more groups that want to sign up and are willing to pay the price, which is currently at an all-time high. And of course, these prices apply to everyone, both individual tourists and groups," he said.

Helping fuel the growth in tourism is the celebration of the 70^th anniversary of the establishment of Israel this year. While celebrations began after Rosh Hashana (September), they will continue through May. For the nights surrounding Israel’s Independence Day on May 14, rooms are already fully booked.

One tour operator, Amnon Ben David, the CEO of Eshet Incoming Tours, said he was having a hard time finding enough lodging for his larger groups. For a group of 150 Americans, he needed to divide guests into several kibbutzim—a type of communal settlement—throughout the region. For another group of 480 Brazilians, he was unable to confirm enough rooms in either Tel Aviv or Jerusalem.

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The tour operator association has tossed around some ideas to manage the issue—including leasing a cruise ship to act as a temporary harborside hotel—but have not yet come up with the right solution.

Individual travelers do not face the same challenges as groups do, as they have more options at their disposal, including area hostels and Airbnb.

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