Where will they all stay?
Photo courtesy of Lowshot
Tel Aviv facing major hotel shortage as tourism surges
Ongoing growth in tourism sector could mean one million new tourists for Tel Aviv, but with only 1,000 new rooms set to be added in next three years – where will they all stay?
Unless there is a major change in the next few months, Tel Aviv
may have to turn away thousands of tourists – due to a shortage in hotel rooms,
research carried out by the Czamanski Ben Shahar and Co. consulting firm revealed.
Some 52 hotels with 6,800 rooms are open for business in Tel Aviv, most along and adjacent to the city's coastline. Yet the four to five star hotels have all been described as "outmoded, over 20 years old and with a lower standard than is currently expected of luxury hotels," the research stated.
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Moreover, in the last decade only seven new hotels opened in Tel Aviv with a total of 850 new rooms. It is estimated that the ongoing growth of incoming tourism will bring another million tourists to the city. Yet only 1,000 hotel rooms will be added in the next three years.
And what is more, in order to actually allow that number of tourists to visit the city, Tel Aviv needs to double the number of rooms it currently offers and increase the number of moderately priced hotels.
The research states that Tel Aviv hotel occupancy levels stand at an average of 76%, with months where occupancy goes beyond the 90% mark. These occupancy levels cause price hikes that lead many tourists to stay away from the city, as the rates make Tel Aviv one of the most expensive cities in the world.
According to Tel Aviv Hotel Association Director General Eli Ziv: "A few new hotels are expected to open within the next year, but these will only add 500 rooms to the existing number. There are many plans for new hotels, but some have yet to receive permits and some seem unrealistic.
"There are other hotel (plans) that are currently at various application stages, like the Forum Palace with 600 rooms, but many years will pass before it will open its doors, and the same can be said for plans in the north-west of the city where there are plans for an additional 1,000 hotel rooms."
Ziv also finds fault with the lack of more moderately priced hotel rooms. "People get confused and think that small hotels are cheap, but in Tel Aviv the small hotels are boutique hotels and they are expensive. In fact, we are missing out on the low-cost tourism sector."
