Israel is beginning preparations for a major expansion of its tourism infrastructure ahead of 2030, with the government targeting 7 million tourists annually and anticipating a particularly significant influx of Christian pilgrims marking the 2,000th anniversary of Jesus’ baptism in the Jordan River.
The Ministry of Tourism has asked the Ministry of Finance to examine the establishment of a NIS 400 million ($132 million) state-backed loan fund to help hotel developers obtain financing for new properties and expansions of existing hotels. The initiative is aimed at addressing one of the principal obstacles to increasing Israel’s hotel room supply as the country prepares for a dramatic increase in international visitors.
The request was recently submitted by Ministry of Tourism Director-General Michael Izhakov to Uri Shasha, Deputy Accountant General at the Ministry of Finance. Under the proposal, the state would guarantee a NIS 400 million financing fund, enabling hotel developers to obtain supplementary credit on more favorable terms.
The financing initiative comes after several years of unprecedented challenges for Israel’s hospitality sector. The COVID-19 pandemic was followed by prolonged security instability and the ongoing effects of the Swords of Iron war, weakening developers’ equity positions, increasing financing costs and tightening credit conditions.
As a result, some hotel projects have struggled to move forward even after receiving investment incentive grants from the Ministry of Tourism.
The proposed loan fund is intended to help unlock private investment, advance new hotel construction and enable projects already under construction to reach completion.
The Ministry has undertaken several other measures to expand the country’s hotel capacity, including establishing the “Migdalor” (Lighthouse) unit, which works with developers to overcome regulatory obstacles, and promoting planning reforms such as mixed-use zoning designed to improve the economic feasibility of hotel developments. The ministry has also provided investment incentive grants supporting the construction of thousands of additional hotel rooms.
Preparing for 2030
The hotel expansion effort takes on added significance as Israel prepares for the government’s goal of welcoming 7 million tourists a year by 2030.
That target coincides with a major milestone for the global Christian community. In 2030, Christians around the world are expected to mark 2,000 years since the baptism of Jesus in the Jordan River, an event of profound religious significance for more than two billion Christians worldwide.
On Wednesday, July 15, Foreign Minister Gideon Sa’ar directed the Foreign Ministry to begin preparations for the 2030 anniversary and ordered the establishment of a dedicated working group headed by Ambassador George Deek, Israel’s Special Envoy to the Christian World.
The group will maintain an ongoing dialogue with churches, Christian communities and religious leaders around the world. At the same time, the Foreign Ministry will initiate an inter-ministerial process involving relevant government agencies to coordinate Israel’s preparations for the millions of Christian pilgrims expected to visit the Holy Land.
The two government initiatives—expanding hotel capacity and preparing for the expected Christian pilgrimage—reflect the scale of the challenge facing Israel if it is to accommodate substantially larger numbers of international visitors by the end of the decade.
Sa’ar said that 2030 represents a unique opportunity for Israel to strengthen its relationship with the Christian world while ensuring access to the country’s Christian holy sites.
“The year 2030 will be a unique milestone for the Christian world, and Israel is beginning its preparations now,” Sa’ar said. “Strengthening our relationship with the Christian world and ensuring that the Holy Land remains accessible to the millions of believers who wish to visit are among Israel’s highest priorities.”
Sa’ar added that Israel would continue to safeguard freedom of worship and access to holy sites for people of all faiths, describing 2030 as an opportunity for Christians worldwide to visit the Holy Land and connect with the origins of their faith.
For the Ministry of Tourism, however, the preparations extend beyond the 2030 Christian anniversary. The proposed hotel financing mechanism is part of a broader effort to ensure that Israel has the accommodation capacity and tourism infrastructure necessary to support a long-term target of 7 million annual visitors.
“This move is expected to serve as a significant lever for private investment on a much larger scale, accelerate the establishment of new hotels across the country, strengthen the resilience of the tourism industry, and contribute to growth, employment and the economic development of many tourism areas,” Izhakov said.
