3New Rooms Grow 64% between 1990-2000—but compare the next decademeet the currentneedmeet Governmentgoal of 10 millionannual touristsGovernmenttourism goalsHaifaNetanyaTiberiasDead SeaTel Aviv-YafoJerusalemElatRooms in tourist hotels in selected localities, thousands,1990, 2000, 2010Rooms occupancy in tourist hotels, percentage, 1990-20111990 2000 20103.910.411.07.29.1 126.96.36.199.81.63.24.03.14.0 188.8.131.52 1.7 0.91.3 1.21990561991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20115467 67 65 68 6661 59 62 6046 44 455157 58 62666066 66
411.7 Million Tourists M.I.A.20% shortof the global marketCan We Catch the World?
5Tourism Increase Impact on GDP5• Direct Travel and Tourism contribution to GDP in 2012 was 2.3% of total GDP (21.3Bn NIS) andtotal contribution (including indirect contribution) was 7.8% of total GDP (71.1Bn NIS).• Travel and Tourism directly supports approximately 82,000 jobs (2.7% of total employment).Total contribution to employment (including indirect jobs) is approximately 252,000 jobs(8.2% of total employment).An increase of 1MMtourists per year willincrease GDP by$1.85 BillionAn increase of 1MMtourists per year willincrease employment by20,000 direct jobs
6Jerusalem 5800 - Jerusalem Metropolis Master Plan 2050
7Proposed Public Transportation System
8Jerusalem Hotel Industry8• Jerusalem has a higher tourist per hotel rooms ratio when compared to other tourist attractionssuch as Istanbul, Hawaii and Rome:– Higher room rates and lack of hotel rooms makes Jerusalem a less attractive place forvisitors when they are deciding on their destination• Hotel investment in Jerusalem has lagged behind the growth in tourism locally and globally.• Shortage of hotel rooms jeopardizes the growth potential of tourism as well as the economic futureof the city as tourism is a major driving force of economic growth.Forecasted need for hotel rooms to meet current andfuture need in Jerusalem9,342Current numberof hotel rooms14,000Estimate of numberof hotel rooms tomeet the currentneed56,000Estimate of numberof hotel rooms tomeet Governmentgoal of 10 millionannual tourists600%Percent changeto accommodateGovernmenttourism goalsJerusalem hotel rooms compared to other popular destinationsIstanbulHawaiiRomeJerusalem8,000,0007,300,00011,400,0002,500,000# of Tourists in 201147,00043,00050,0009,400# of Hotel Rooms170170228266Tourists per Hotel Room4,500Hotel rooms neededtoday to bring Jerusalemcapacity in line with need
9Shortage of Hotel Rooms in Jerusalem9• There are currently 9,342 hotel rooms available in Jerusalem, while based on estimates fromthe Jerusalem 5800 initiative, there is a need of 13,846 to properly serve the present demand,representing an increaseof 48% from the current level.• With the goal set by the municipal government to increase tourism levels to 10 million annually,an estimated 47,000 additional hotel rooms will be needed to address the future demand.Forecasted need for hotel rooms to meet current andfuture need in Jerusalem9,342Current numberof hotel rooms14,000Estimate of numberof hotel rooms tomeet the currentneed56,000Estimate of numberof hotel rooms tomeet Governmentgoal of 10 millionannual tourists600%Percent changeto accommodateGovernmenttourism goalsHawaiiRomeJerusalem7,300,00011,400,0002,500,00043,00050,0009,400170228266Hotel rooms neededtoday to bring Jerusalemcapacity in line with needHaifaNetanyaTiberiasDead SeaTel Aviv-YafoJerusalemElatRooms in tourist hotels in selected localities, thousands,1990, 2000, 20101990 2000 20103.910.411.07.29.1 184.108.40.206.81.63.24.03.14.0 220.127.116.11 1.7 0.91.3 1.2