Full Breakdown
Israeli Cabinet Approves NIS 27 Million Plan to Accelerate Hotel Development in Judea and Samaria
7/8/2026, 8:30:28 PM
Cabinet Approval and Program Overview
On 7 October 2024 the Israeli government approved a NIS 27 million (? $9 million) program aimed at expanding hotel capacity in Judea and Samaria (the West Bank). The plan combines statutory planning, infrastructure preparation, and a grant track to reduce barriers for private investors and to shift tourism from day-trips to overnight stays.
Background: Tourism Constraints in the West Bank
Tourism officials cite a shortage of zoned land and an absent planning inventory as primary obstacles to hotel construction. Most existing hotels serving the area are located in Bethlehem, administered by the Palestinian Authority, while the majority of foreign visitors currently return to Jerusalem hotels each evening. Under the 1990s Oslo Accords the West Bank is divided into Areas A, B, and C; Area C, under full Israeli control, contains roughly 500,000 Israeli settlers and the majority of settlement construction deemed legal under Israeli law.
Program Funding and Mechanisms
- Planning allocation: NIS 7 million from the Tourism Ministry’s budget will be spent between 2026 – 2030 on statutory planning, land-mapping studies, and a planning inventory.
- Grant allocation: NIS 20 million from the ministry’s development budget will fund grants covering up to 28 % of approved investment (a base 20 % plus a possible 8 % bonus).
- Administration: A dedicated committee, appointed by the Director-General of the Tourism Ministry, will award grants once procedural guidelines are published.
Data & Statistics
- Investment in West Bank tourism infrastructure over the past decade: NIS 115 million (? $38 million).
- Investment in the rest of Israel over the same period: > NIS 2 billion (? $666 million).
- Earlier related allocations: NIS 50 million (? $16.7 million) approved in May 2024 for public tourism infrastructure, and NIS 58 million (? $19.3 million) announced in February 2024 for broader infrastructure upgrades, including Samaria.
Official Government Position
Tourism Minister Haim Katz presented the initiative as the first comprehensive effort to integrate planning, infrastructure, land-reserve creation, and a dedicated construction track, emphasizing the removal of sectoral barriers and the creation of investor certainty. Tourism Ministry Director-General Michael Izhakov described tourism as a central growth engine and a source of national pride, linking infrastructure investment to an enhanced visitor experience and international competitiveness.
Anticipated Impact
The program is intended to increase the supply of hotel rooms, encourage longer visitor stays, and stimulate the local economy in Judea and Samaria. By establishing a clear planning framework and offering financial incentives, the government aims to attract private capital and diversify accommodation options beyond the current reliance on Jerusalem-based hotels.
Conflicting Reports & Information Gaps
Sources differ slightly in the USD conversion of the NIS 27 million budget (ranging from $8.2 million to $9 million). The exact procedural rules for grant allocation and the timeline for the mapping study have not yet been published, leaving uncertainty about implementation details.
Verbatim Quotes
- “Tourism Minister Haim Katz said following the approval of the decision: “The program will enable the realization of the enormous tourism potential in Judea and Samaria.” — Haim Katz, Tourism Minister
- “For the first time, we will lead a comprehensive move that combines planning, infrastructure development, the creation of land inventory for hotels and a dedicated track to encourage hotel construction,” — Haim Katz, Tourism Minister
- “Tourism is a central growth engine and a source of national pride,” — Michael Izhakov, Director-General, Tourism Ministry
- “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.” — Haim Katz, Tourism Minister
Upcoming Steps
The ministry will conduct a multi-year mapping study to identify land suitable for hotel projects, finalize the grant-award procedures, and begin issuing statutory plans. Grant distribution is slated to commence after the procedures are released, with the planning component extending through 2030.
