"After the Jewish holidays, I will create a public committee to examine hotel prices," said Minister of Tourism Stas Misezhnikov yesterday at a Jewish New Year toast held by the Israel Hotels Association. "If cottage cheese, housing and gasoline prices are too expensive, then so are hotel prices - for Israelis, as well as for tourists. Hotel prices should be lower and more readily available," Misezhnikov said.
"We will make an effort to lower costs, which fall on the consumer, so that hotel stays will be less expensive. This does not mean that I will begin to fight with hotels over prices, but there are flaws that hurt the hotels, and affect their prices."
Hotel Association president Ami Federmann said that tourism was a barometer that was sensitive to everything that is happening around it. "Therefore, everything affects us, yet we are still optimistic. We have had plenty of experience dealing with obstacles over the years." Federmann added that he is concerned about the implications of a declaration of a Palestinian state on the tourism industry.
Federmann noted the lack of investment in the hotel industry in Israel. "We do not see any investors waiting in line to invest in hotels, and this should raise some questions. Occupancy is good, and prices are good, but there are no investors. If occupancy is high, and prices are high, and profitability is high, then why are no investors waiting in line? Why are no new hotels being built in Israel? Something is faulty, and we must fix these faults so that we can better develop the industry," he concluded.
Published by Globes [online], Israel business news - www.globes-online.com - on September 20, 2011
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