Gov’t approves NIS 27 million for hotel construction in West Bank to promote tourism

Israel's government has approved an allocation of approximately NIS 27 million to develop and construct hotels in the West Bank, with the stated goal of promoting tourism in the region. This initiative aims to shift the West Bank's perception from a "day-trip destination" to one that encourages overnight stays, thereby extending tourist visits and boosting the local economy.

The Tourism Ministry identified a lack of available planning reserves for hotels as a major obstacle to tourism development in the West Bank. To address this, the government plans to advance statutory planning for hotel development, facilitate the realization of development rights, and market land plots. The funding includes NIS 7 million from the ministry's ongoing budget, distributed between 2026 and 2030, and an additional NIS 20 million from the development budget for grants.

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enable the realization of the enormous tourism potential in Judea and Samaria.

These grants, intended to cover up to 28% of approved investment plans, will be awarded through a committee appointed by the Tourism Ministry's director-general. The grants aim to reduce the financial risk for investors and enable the execution of hotel projects. The ministry noted that over the past decade, about NIS 115 million has been invested in West Bank tourism infrastructure, significantly less than the over NIS 2 billion invested in other parts of Israel.

Tourism Minister Haim Katz praised the plan, asserting that it will "enable the realization of the enormous tourism potential in Judea and Samaria." He added that the comprehensive initiative, combining planning, infrastructure, land reserves, and dedicated construction incentives, will remove barriers, create certainty for investors, and increase accommodation supply, ultimately attracting more tourists and strengthening the local economy.

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For the first time, we will lead a comprehensive initiative combining planning, infrastructure development, the creation of land reserves for hotels, and a dedicated track to encourage hotel construction. In doing so, we will remove barriers in the sector, create certainty for investors, and lay the groundwork that will increase the supply of accommodation rooms, attract tourists, and strengthen the local economy.