Israeli Government Approves $8 Million Plan to Boost Hotel Construction in West Bank

The Israeli government approved a new plan on Sunday aimed at accelerating hotel construction in the West Bank, with an estimated budget of 27 million shekels (approximately $8 million). The initiative seeks to remove planning barriers and provide grants to encourage the establishment of hotels in the region. Over the past decade, investments in West Bank hospitality totaled around 115 million shekels, compared to two billion shekels in the rest of Israel. This plan complements a previous government decision from May that allocated 50 million shekels for developing public tourism infrastructure in the West Bank.

The Ministry of Tourism will lead efforts to promote hotel construction by marketing land plots and facilitating planning processes, with seven million shekels dedicated from its budget for these activities. Additionally, 20 million shekels will be allocated as grants for building, converting, or expanding hotels in the area. Tourism Minister Haim Katz emphasized that the program will unlock the West Bank's significant tourism potential by integrating planning, infrastructure development, land availability, and dedicated incentives for hotel projects. He noted that the plan aims to increase lodging capacity, attract more tourists, and strengthen the local economy by providing certainty to investors and removing existing obstacles.