Mombassa hotel demands $2,000 from time-share owners

The Israel National Insurance Institute has recognized the Israeli victims of the attack as victims of terrorism.

Sources inform “Globes” that the owners of the Paradise Hotel, where three Israelis were killed in a terrorist attack, have recently demanded $2,000 from the Israeli owners of time-sharing units in the hotel. The hotel owners said the money was needed “in order to cover the expenses of renovating the hotel, which was severely damaged in the attack.”

The time-share owners have already paid $7,000-10,000 in recent years for the right to use the unit for one week a year.

The demand stunned many of the time-share owners, some of whom had only just finished paying for their units. Some of them believe the demand is not legitimate, and the hotel owners should finance the renovations either from the insurance money, or out of pocket. Others agree the demand is legitimate, since the hotel is not insured against terrorism.

Adv. Yigal Cohen, trustee for the time-sharing units in the hotel purchased by Israelis, told “Globes”, “The requests were sent to the 1,000 Israeli unit owners. The demand is reasonable, given the fact that the hotel is not insured against terrorist attacks. Had the attacks occurred in Israel, property taxes would have covered the damage.

”I looked for a similar institution in Kenya, but there is none, so the hotel owners have to bear the expense. For the time-sharing unit owners the payment is for maintenance, which they would have had to pay later in any case. At the same time, I’m checking whether Israeli government agencies will participate in the added cost, and I’ve also contacted the property tax department. I’m waiting for answers.” Cohen also contacted the Kenyan ambassador to Israel.

It should be emphasized that Cohen is not a party to the $2,000 demand, which comes from the hotel owners. Cohen formally holds the time-sharing units for the Israeli purchasers, since the right to use them for one week a year cannot be registered in the land registry, and a trustee is required.

Cohen added a warning note for the units, through a Kenyan company under his management. He said that the unit owners had already begun negotiating with the hotel owners over the $2,000 demand, and various means of compensating the unit owners were under consideration, including the granting of an additional week of use.

At the same time, the Israel National Insurance Institute has reportedly recently recognized the Israeli victims of the terrorist attack in Mombassa as victims of terrorism, who are entitled under law to monetary compensation. The National Insurance Institute said that some of those injured had already filed claims, which would be granted.

Published by Globes [online] - www.globes.co.il - on December 17, 2002

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