Hopes that Israelis would take summer vacations in Eilat rather than Antalya following tensions with Turkey did not materialize in July, and it is now clear that things will be the same in August as well. Hebrew daily "Ma'ariv" reports that, for the first time in many years, Eilat's hotels are not full in August, and that the an average occupancy rate is 80%.
Ophir Tours deputy CEO Yehuda Zafrani said that Eilat hoteliers had believed that Israelis who were planning vacations in Turkey would come to them instead. The hotels therefore raised prices, but the tourists did not come, as Israelis chose not to take costly vacations.
Eilat's hotels are now launching last-minute discounts of up to 30% to persuade Israelis to go to the resort town. Club Med Eilat, for example, has cut the price for a couple from NIS 1,800 a night to NIS 1,350.
Isrotel Ltd. (TASE: ISRO) admits that it is disappointed by the occupancy rate at its hotels, which stands at 80-85%, compared with its expectations of full occupancy. "This is not the usual situation at this time of year," said the company.
Published by Globes [online], Israel business news - www.globes-online.com - on August 8, 2010
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