5. 5
Tourism Increase Impact on GDP
5
• Direct Travel and Tourism contribution to GDP in 2012 was 2.3% of total GDP (21.3Bn NIS) and
total 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 1MM
tourists per year will
increase GDP by
$1.85 Billion
An increase of 1MM
tourists per year will
increase employment by
20,000 direct jobs
8. 8
Jerusalem Hotel Industry
8
• Jerusalem has a higher tourist per hotel rooms ratio when compared to other tourist attractions
such as Istanbul, Hawaii and Rome:
– Higher room rates and lack of hotel rooms makes Jerusalem a less attractive place for
visitors 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 future
of the city as tourism is a major driving force of economic growth.
Forecasted need for hotel rooms to meet current and
future need in Jerusalem
9,342
Current number
of hotel rooms
14,000
Estimate of number
of hotel rooms to
meet the current
need
56,000
Estimate of number
of hotel rooms to
meet Government
goal of 10 million
annual tourists
600%
Percent change
to accommodate
Government
tourism goals
Jerusalem hotel rooms compared to other popular destinations
Istanbul
Hawaii
Rome
Jerusalem
8,000,000
7,300,000
11,400,000
2,500,000
# of Tourists in 2011
47,000
43,000
50,000
9,400
# of Hotel Rooms
170
170
228
266
Tourists per Hotel Room4,500
Hotel rooms needed
today to bring Jerusalem
capacity in line with need
9. 9
Shortage of Hotel Rooms in Jerusalem
9
• There are currently 9,342 hotel rooms available in Jerusalem, while based on estimates from
the Jerusalem 5800 initiative, there is a need of 13,846 to properly serve the present demand,
representing an increase
of 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 and
future need in Jerusalem
9,342
Current number
of hotel rooms
14,000
Estimate of number
of hotel rooms to
meet the current
need
56,000
Estimate of number
of hotel rooms to
meet Government
goal of 10 million
annual tourists
600%
Percent change
to accommodate
Government
tourism goals
Hawaii
Rome
Jerusalem
7,300,000
11,400,000
2,500,000
43,000
50,000
9,400
170
228
266
Hotel rooms needed
today to bring Jerusalem
capacity in line with need
HaifaNetanyaTiberiasDead SeaTel Aviv-YafoJerusalemElat
Rooms in tourist hotels in selected localities, thousands,
1990, 2000, 2010
1990 2000 2010
3.9
10.4
11.0
7.2
9.1 9.3
5.1
5.9
6.8
1.6
3.2
4.0
3.1
4.0 4.2
1.4
1.9 1.7 0.9
1.3 1.2
