1 in every 3 Tel Aviv tourists stays in an apartment

Tel Aviv coastline Photo: Shutterstock
Tel Aviv coastline Photo: Shutterstock

Tel Aviv plans restricting the tourist apartment rental market in the city.

The Tel Aviv municipality today presented a 10-year masterplan for tourism. The main points of the plan are development and upgrading of tourist sites and extending them to more areas of the city.

At a press conference presenting the plan, Tel Aviv Mayor Ron Huldai commented on the municipality's concern that the city's residents would follow the global trend of opposition to tourism, which is particularly prevalent among residents of Barcelona and Venice. "No one is immune," Huldai said, referring to the projection that the 2.2 million tourists who visited Tel Aviv would double in a decade. "Tel Aviv-Jaffa may be far from the negative experiences of tourists in many cities around the world, but challenges are already visible and must be addressed, such as apartments being shifted from the rental market to tourism, combined with a shortage of accommodations."

According to the municipality's figures, Tel Aviv has 10,500 hotel rooms and the enormous number of rooms, some 17,000,  in apartments for short-term rental. 81% of the latter are in apartments that are permanently available for renting. Eytan Schwartz, CEO of Tel Aviv Global, a municipal company managed directly under the office of the Tel Aviv mayor, called the short-term apartment rental market "a market running wild, with no constraints or supervision." He added, "One out of every three tourists stays in an apartment. If we don't do something about this unregulated market, it will cost us in the coming years. There are neighborhoods in which the damage is beginning to be unbearable."

Schwartz commented on the idea being applied in many cities around the world of restricting the number of days for which a property can be leased for short-term rentals to 90 days a year. Such a vision, however, must be anchored in legislation, which requires the convening of a new Knesset.

"In order to meet the demand for tourist accommodations, we will have to add 7,000-10,000 hotel rooms in a decade. 12,000 hotel rooms have already been approved on paper, and we should have already reached the target, but the plans are not being carried out, and the developers are in no hurry for all sorts of reasons. We'll speed up the pace of building," Schwartz declared.

Among other things, the municipality intends to encourage more hotel rooms through conversion of offices to hotels in a faster and cheaper process. In addition to conversion, 2,000-3,000 more hotel rooms in the city are planned. "With no intervention, we'll reach four million tourists in the coming decade, assuming a 5% rate of increase (the usual figure used worldwide, M.R.-C.). Tourism will provide NIS 10 billion in annual income for the city - this is economically important," Schwartz said. He explains that the annual municipal budget for tourism is NIS 18-20 million.

Huldai mentioned the two main barriers to tourism: defective transportation and the cost of living. "Buses are infrequent or don't meet the timetable, or taxi drivers take advantage of the tourists. We failed with taxi drivers during the Eurovision Song Contest - tourists reported this in surveys. Tel Aviv is perceived as a great destination, but one where prices are too high, and we're trying to fix this, too," he says.

If people expect Huldai to announce that public transportation will operate on the Sabbath, after the municipality did this during the Eurovision Song Contest, they will have to go on waiting. Huldai is well aware of the problem of public transportation on the Sabbath in the city, but at this stage, the municipality's solution for the problem is a bus for tourists only that will operate on Friday and Saturday. "The situation today is insufferable; something has to change. Such a bus is a solution for a tourist, not a solution for public transportation at weekends," he said.

Published by Globes, Israel business news - en.globes.co.il - on June 24, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Tel Aviv coastline Photo: Shutterstock
Tel Aviv coastline Photo: Shutterstock
Unframe founders credit: Yossi Yarom Israeli AI enterprise platform co Unframe raises $50m

Unframe’s turnkey AI solutions enable companies to solve any enterprise AI use case at scale with fully functional, customized AI solutions for businesses in a matter of hours, rather than months.

Combatica credit: Combatica Combatica launches next-gen VR AI training platform

The Israeli company's virtual reality platform includes 50 AI generated scenarios, seven maps and even situations for operating night vision.

Shekel credit: Shutterstock Vladirina 32 Shekel volatility after US tariffs announcement

The shekel is weakening sharply against the euro, which is gaining following the unveiling of Donald Trump's tariffs plan.

Minister of Finance Bezalel Smotrich credit: Noam Moskovitz Knesset Spokesperson Treasury assesses potential damage to Israel's US exports

Israel will be charged a higher tariff on its exports to the US - its biggest export customer - than Turkey and the UAE.

Iranian flag credit: Shutterstock Why inflation haunts Iran

With a month-on-month increase of 3.3% and an annual rate of 37.1%, inflation reflects the struggles of millions of Iranians.

APM merges with lawyers from Doron, Tikotzky Kantor, Gutman credit: Eyal Merilos APM merges with 12 lawyers from Doron, Tikotzky Kantor, Gutman

With the addition of these 12 lawyers, Amit Pollak Matalon & Co. will now have 135 lawyers.

US President Donald Trump credit: Reuters Sipa USA Israel on list as Trump unveils tariffs

Relatively low reciprocal tariffs will be imposed on Israeli goods sold in the US.

Deflated unicorn credit: Shutterstock Big Tech 50 reports more huge falls in startup valuations

Israeli R&D partnership Big Tech 50 reports that an investment of $2 million in Orcam made in 2021, shrank to just $31,000 at the end of 2024.

NextFerm technologies based on yeast credit: NextFerm Food-tech co NextFerm suspends operations

The company, which produces food ingredients in yeast without genetic engineering, cannot pay its debts and is seeking a buyer.

Minister of Finance Bezalel Smotrich credit: Shlomi Yosef OECD sees recovery in growth but high inflation

The OECD Israel Economic Survey 2025 recommends that the Israeli government take several restraining measures, in order to exit the economic storm created by the war.

Dano Ben-Hur credit: Dror Sithakol Statisticians contradict BoI on impact of housing finance deals

The Central Bureau of Statistics insists the impact of 20/80 buy now pay later financing deals on the real estate market and housing prices is minimal.

Governor of the Bank of Israel Amir Yaron  credit: Government Press Office Debt fears top Bank of Israel's concerns

Most unusually, Governor of the Bank of Israel Amir Yaron's press conference last week did not focus on inflation and the impending interest rate decision.

US President Donald Trump  credit: Reuters/Leah Millis Israel moves to avoid Trump's tariffs axe

Minister of Finance Bezalel Smotrich has signed an order canceling all tariffs on imports from the US. The impact will mostly be on agricultural produce.

Forbes Rich List credit: Shutterstock Maslowski Marcin Wiz founders ranked in Forbes 2025 Rich List

There are a few dozen Israelis listed in the 2025 Forbes Real-Time Billionaires List including Wiz founders Assaf Rappaport, Yinon Costica, Roy Reznik and Ami Luttwak.

SatixFy CEO Nir Barkan credit: Ariel Barkan Canada's MDA Space to buy Israeli satcom co SatixFy

MDA Space will pay $269 million for the Israeli company, including taking on a $76 million debt and a 75% premium on SatixFy's closing price on Nasdaq yesterday.

Raising dollars credit: Shutterstock Israeli startups raised over $1b in March

Israeli privately-held tech companies have raised $2.1 billion in the first three months of 2025, according to IVC-LeumiTech, up 24% from the corresponding quarter of 2024.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018