Governmental Incentives For Developing The Hotel Industry

Introduction

Following the Corona pandemic, a number of entrepreneurs and businessmen have recently contacted our firm, interested in examining the option of converting office buildings in their ownership for hotel purposes. Apart from the proprietary aspects and the licensing and planning processes which must be considered, at the first stage our recommendation is to examine whether the project is entitled to government grants for converting buildings with the designation of residence, employment and commerce to hotels, or assistance grants for the establishment and expansion of existing hotels.

First of all, it is important to realize that prior to the outbreak of the pandemic, over the past decade, there was significant growth in the scope of activity of the hotel industry in Israel in general, and significant growth in the quantity of incoming tourism to Israel in particular. Thus, 2019 alone was characterized by a record of 4.9 million tourists, and no less