The Tourism Ministry has allocated NIS 190 million to build new hotels and expand and renovate existing or out of use accommodations. The goal is to increase the nation's available hotel rooms by 2,500 within three years.
Four months ago, the ministry published a tender that allocated NIS 100m. to assist investors interested in establishing new hotels and adding 700 hotel rooms to the market. The bids that were submitted are being examined. According to the ministry, half of them met the tender's terms.
The ministry has published a second, NIS 90m. tender for investors interested in building or expanding hotels. It expects 2.8 million tourists in 2008 and up to 5 million tourists in 2012.