Swiss hotel chain Movenpick has decided to finally abandon plans to construct a resort village on Ashdod’s southern coastline, after the company did not receive land allocation without a tender, due to opposition from the Ministry of Finance.
Minister of Tourism Moshe Katzav and Ashdod mayor Zvi Zickler were informed by company president Windfuhr. The decision was made after three years of planning and negotaitions.
Movenpick is currently examining the possibility of constructing a resort village in Ashkelon, but is hesitating, as the proffered site is much smaller than the original site in Ashdod. The hotel chain is also examining investment in other regions in Israel.
In addition, Movenpick is a partner in the construction of a hotel on the Mandelbaum site in Jerusalem, along with the owners of an East Jerusalem travel agency. The hotel is in construction stages.
The project in Ashdod was planned to be a $50 million investment, in partnership with Israeli firm Minrav. 250 vacation units were planned at the first stage, with the final number reaching 526 units.
About two weeks ago, a meeting was held in the Minister of Finance’s Office in which Katzav, Zickler, and representatives of Movenpick participated. Minister of Finance Ya'akov Ne'eman demanded that the land approved for Movenpick be offered in a tender, even if the entire value assessed by state’s assessor cannot be achieved. The Movenpick representatives rejected another offer from Neeman, according to which the company would have raised its bid.
The Ministry of Tourism stated in response that Movenpick announced its decision to abandon the investment in Ashdod orally, and that Katzav has asked the company to reconsider.