Club Med returning to Israel?
International hotel chain's president dreams of small resort club near Mediterranean Sea, with lots of sports activities. All he needs is location, investors
There are just a few problems: He still doesn't have an exact location, an investor who will join the project – which is expected to cost at least €50 million (about $65 million) – as a partner and a permit from the Tourism Ministry to receive a grant to build the project, and will later face numerous obstacles like planning committees and objections by environmental organizations, as well as other problems related to every construction project in Israel.
And yet from the 19th floor of Tel Aviv's Royal Beach Hotel, Giscard d'Estaing explains his ambitious project to Yedioth Ahronoth. Instead of leasing and renovating an existing hotel, the chain decided to build a new resort club which is slated to be the "cutting edge" in luxury hotels, he says.
According to Giscard d'Estaing, Israel has no hotel at the moment which is also on the coastline, also around nature, and is also close to the center of the country and to its international airport.
"In the past few years we have shut down 65 clubs which weren't worthwhile upgrading to a new level," he says. "Just like we invented the 'all-inclusive' formula, recently we are reinventing ourselves with the establishment of luxury clubs for an audience who can pay for them.
"We had a hotel in Eilat which wasn't worthwhile renovating. It didn't meet our needs, there was a drop in the number of customers from abroad, we were in a lose-lose situation and it affected our Israeli market, which is very important to us in the area of ski. Fifty percent of those who leave Israel to ski stay in a Club Med club. When they're in Israel they want a high-quality club, and that's exactly what we couldn't give them."
Club Med Pragelato Vialattea in Italy (Photo: Bruno VAN LOOCKE)
Giscard d'Estaing says Israel leads the world in the fields of culture, history, archaeology and technology, and deserves a top resort club.
He has a very specified vision. "We want a club which will be open all year round, on the beach, a building which won't be too tall – something like two or three floors, 350 rooms – with a lot of sports activities, which will host groups and conventions in the middle of the week, and on the weekend a population which can afford such a club," he says.
"It's important that it will be in a place where the weather is comfortable most days of the week, and so we are looking for something in the middle, preferably between Haifa and Tel Aviv."
Are you aware of all the problems you are facing?
"Absolutely. We know it won't be easy. If we find the right location and the right partner, we'll turn to the government for assistance and explain the big contribution such a club can make to Israel, because upscale tourists will come here.
"Up to a few years ago, the Chinese were not a significant factor in world tourism, and today you see rich people from China in the world's most luxurious clubs, like in the Maldives. I am certain we'll be able to bring them to Israel too, alongside rich tourists from other places."
You realize that the club will only open in 10 years.
"Why are you being pessimistic? All over the world it takes time to build a new hotel with all the permits. It's okay, it's part of what we're planning, and we estimate it will take about five years."
To what extent did the economic crisis in Europe affect you?
"It did. It affected the entire tourism industry, and us too. The number of vacationers from Italy was almost cut by half, and other audiences reduced as well. But our results were still better than the others'. The damage to tourism from France, for example, was smaller than that suffered by other clubs and tourist resorts.
"Luckily, we have clubs all over the world, and when there is a crisis in one place there is prosperity in another place. In China, for example, tourism is booming, and in developing markets in South America as well. In Europe we fight for our share, and to lead luxury tourism."
Kashrut? That is to be discussed
Not so long ago you opened a club in Kemer, Turkey. How can you compete against the local all-inclusive clubs, which are of a very high level?
"Easily. With all due respect to the Turks, our new club is at a very high level and we offer activities their clubs don't have. That includes Baby Club for babies aged four months and up, activities for children according to age groups, and other activities the Turks' clubs don’t have."
Gastronomy is part of Club Med's concept. Will the club in Israel be kosher?
At this point Giscard d'Estaing thinks for a moment, smiles and says diplomatically: "That’s to be discussed. Right now we're still very far from that point."
