Hotels pace corporate rebound in 4Q, Bank of Israel says

"Most industries saw a return to levels of activity from before the hostilities."

January 25, 2007 12:12
1 minute read.


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analysis from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


Overall economic activity picked up in the fourth quarter of 2006 recovering from the moderate growth in the third quarter resulting from repercussions of the second war in the Lebanon, the Bank of Israel's quarterly report of companies revealed Wednesday. Using qualitative measures of about 500 companies and businesses from different industries participating in the survey, the central bank said that total economic activity "accelerated" following the more modest rise in the preceding quarter, which was overshadowed by the hostilities in the North. "Most industries saw a return to levels of activity from before the hostilities," the report said. "The hotel industry (particularly in the Haifa and northern districts) not only rebounded but reported a rise in activity on the previous quarter." Still, on a year-over-year comparison, the hotel industry suffered from a fall in activity reflecting the relatively low number of bed nights of foreign tourists and Israelis as a result of the fighting. "Hotels continued to see a drop in activity (in comparison to the parallel quarter last year) in the Haifa and the North and in the Jerusalem region, while the Tel Aviv and central region reported a rise in activity, and the South remained stable," the central bank said. Companies in the hotel industry expected the drop in orders to continue into the next quarter. Sector by sector analysis of the central bank's report showed a rise in economic activity in the manufacturing, communications, construction, trade and service industries. The bank further reported that expectations among companies were for the shekel to depreciate over the next 12 months to NIS 4.43/$1, compared with the outlook of NIS 4.56 three months ago. The participating companies forecast a level of NIS 4.30 to the dollar by the end of the first quarter of 2007. Meanwhile, the companies' average forecast for inflation for the quarter fell sharply to 2 percent from 2.5% in the previous quarter. The proportion of companies expecting that inflation in the next 12 months would exceed the government's upper limit of 3% stood at 8% down from the 15% who expected this in the previous quarter.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection