“We are cautiously optimistic when considering the Israel hotel industry’s ability to recover at an accelerated pace compared to other countries in the Mediterranean region. Although this crisis is unprecedented and still deeply uncertain, Israel’s hoteliers have had exceptional experience on how to thrive in periods of uncertainty.” This, as written in the HVS Israel Hotel Market Overview 2020 and presented yesterday (Sept 1) in a webinar entitled The Path to Recovery – Focus on the Israel Hotel Sector. The webinar, initiated by the Israel Ministry of Tourism in cooperation with international hotel consultants HVS London, was moderated by Lorin Maugery, Head of Foreign Investor Relations, Israel Ministry of Tourism.
Chairman HVS London Russell Kett and Senior Associate Simon Hulten,: “We are of the opinion that the hospitality industry in Israel will recover and, as in the past, this downturn will create the opportunity for strong returns through well-timed and well-executed investment strategies.”
More than three hundred Israeli and foreign entrepreneurs, senior executives from international hotel chains, property owners and real estate agents from 32 countries, including the United Arab Emirates, participated in the conference. This year, due to the restrictions imposed by the corona crisis, the conference took place in a digital format via Zoom.
HVS is a global consulting firm focused exclusively on the hospitality industry and publishes annual reports on hotels and large markets around the world (cities and states) . HVS publishes an annual Israel Market Overview that serves, among others, as a useful tool for foreign investors interested in entering the Israel hotel market. The report was presented in the webinar with a view to attracting investment in the construction of hotel rooms in Israel.
Tourism Minister Asaf Zamir opened the webinar, and Tourism Ministry Director-General Amir Halevi, who spoke about tourism development in the Negev. Participants included Thomas Emanuel, STR who presented a report on recent and current performance of hotels in Israel, Chairman HVS London Russell Kett, who presented the Israel Hotel Market Overview 2020. The webinar also featured a panel discussion with the participation of Carmit Bar-On, partner Meitar Law, Hotel and Leisure practice; Alexis Delaroff, COO New East, Accor; Jonathan Falik, Founder and CEO JF Capital Advisors; Shirly Kaplan, Bank Leumi, head of the tourism sector; Ronen Nissenbaum, President and CEO, Dan Hotels Ltd.
The report also noted: “HVS’s RevPAR outlook for Israel envisages a 60% decrease in 2020 followed by a sharp increase, driven primarily by occupancy, in 2021. Occupancy is expected to recover by 2023, followed by average rate a year later (in real terms). We note that the situation remains fluid; forecasts may change as time passes and as more light is shed on the rate of recovery.”
The Ministry of Tourism said it is interested in providing information and assistance to entrepreneurs who see the crisis as an opportunity and have a long-term vision. It noted that the establishment of a hotel takes several years, so preparations should begin as soon as possible, in order to exploit this period and be ready for the return of the industry to full activity.