A unique tender - the first of its type - is to be published in the coming days by the Israel Land Authority and the Tourism Ministry, which includes the acquisition of lease rights for five plots designated for hotels, located throughout the country, in order to establish a nationwide chain of budget hotels.
In keeping with Tourism Ministry policy to lower the price of vacationing in Israel by, among others, increasing the supply of budget hotel rooms and creating competition in the hospitality market, the ministry has been working for some time to facilitate budget hotel chains to build a large number of inexpensive hotel rooms throughout the country. The tender is also in line with a worldwide trend in the hotel industry, in which international chains (such as for example Hilton and Carlton) establish budget brands.
There are hundreds of budget hotel brands worldwide, and the ministry hopes that the tender will generate international interest in entering the Israeli market.
The hotels will be built in the following areas: Eilat - 150 rooms in the center of the city (Mafiya district):
Mizpe Ramon - 100 rooms in the Spice Quarter
Dead Sea area - 300 rooms in Ein Bokek
Kiryat Gat - 100 rooms near the northern entrance to the city
Nazareth - 200 rooms near the northern entrance to the city
According to the Tourism Ministry, the benefits in building a budget hotel chain at one time, as opposed to building an individual hotel are, among others: reduced building costs, reduced subcontracting costs and reduced marketing costs. These will all lead to lower prices. Another advantage is for the tourist to extend his stay in the country, with a package that includes several hotels together throughout Israel.