Hotels in Israel have shown encouraging growth in performance over the past year, albeit that the recent tension and conflict the region has been experiencing will have a profound effect on this year's performance.
According to the report of the world's leading consulting and services organization HVS, Israel's hotels held up relatively well last year with average occupancy rising from 69% in 2012 to 70%.
The report says that average daily room rates in hotels across five key locations in Israel reached US$190 in 2013, up from US$178 in 2012, with the highest being in Tel Aviv at US$234 and in Eilat at US$188.
Rooms revenue per available room (RevPAR) also saw an increase in 2013, up from an average of US$122 in 2012 to US$133, demonstrating the potential for tourism in the country. Arrivals showed decent growth in the same period.
However, while domestic bed nights in hotels have been gradually increasing, international visitors have declined in 2011-12, remaining static in 2013. The Israel Hotel Association estimates the damage to the country's tourism to stand at US$500 million during the third quarter of 2014 alone.