Israel’s Hospitality Industry Suffering Worst-Ever Crisis, Says Israel Hotel Association

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(Tomer Neuberg/Flash90)

JERUSALEM (JNS) — Amidst the world-wide tourism slowdown due to the coronavirus outbreak, Israel Hotel Association (IHA) president Amir Hayek warned on Monday that the hotel industry is “on the brink of collapse.”

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“Mass layoffs and hotels closing down” lie ahead, said Hayek, adding that 4,000 of the 41,000 workers in the hotel industry have already been sent on unpaid leave, according to the Globes business daily.

This was the worst crisis in the history of the Israeli hospitality industry, said Hayek.

“If immediate government aid is not forthcoming, mass layoffs will begin, and the sector will lose over half of its employees,” he said.

According to IHA statistics, hotel occupancy has dropped to less than 40 percent, which is 30 percent less than at the same time last year. In Tel Aviv and Jerusalem occupancy rates are even lower at 30 percent, according to the report.

“The expected closure of Israel’s borders to tourist entries from the entire world will immediately cost the sector NIS 500 million [$142 million] a month in revenue, NIS 6 billion a year [$1.7 billion], and hotel occupancy will drop to 20 percent in areas oriented toward incoming tourism, such as Jerusalem and Tel Aviv. There will be massive layoffs, and dozens of hotels will close down,” said Hayek.

Some hotels are close to closing already, he said.


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Boroch
Boroch
4 years ago

I really feel sorry for the Israeli hotel industry; first of all, they don’t know, nor do they care to know what service means. They don’t always provide hot water, enough towels, their front office staffs are rude and indifferent, etc. One time, I went to a small hotel in Netanya, where they were still utilizing actual keys, instead of electronic key cards. They key which they gave me didn’t work, and their staff blamed me for the problem. Another time, there were several blackouts in the hotel. When the nasty hotel clerk wanted to know why I didn’t tell him of a problem, I told him that if I could have see to have gotten out of the room, and opened the door, I would have told him. Also, when I was watching a television program in the lobby featuring a Jordanian tv station, he made some snide remark that “of all of the tv stations, you chose that one”. The fact of the matter is that I-24 Israeli news features such stations today. In addition, that same arrogant hotel clerk, didn’t speak that way to the goyish guests. Last, in all of Israel, there is not one hotel, which is 100% smoke free. They can’t exist without their cigarettes.

Spare me
4 years ago

So you had a bad experience at one hotel and therefore the entire industry deserves this? Every last one is horrible? What on Earth is your point?
Thousands of ordinary people will be out of work and won’t be able to pay their bills through no fault of their own. What about them???

yossie
yossie
4 years ago

have no idea what you are talking about
i stay in the david citadel in yerushalyim
the service is outstanding
they accommodate your every wish

triumphinwhitehouse
triumphinwhitehouse
4 years ago

if Israel’s economy collapses, it wont be the worst thing as the Goyim who are coming on aliyah will stop, arabs will need to get jobs as will chareidim.