Assistance for the construction or expansion of hotels in Israel for 2021

Following the Ministry of Tourism’s policy of promoting and encouraging the addition of storage facilities in Israel, assistance in establishing and expanding hotel facilities is also published this year.

Hotel area in Tiberias. Photo by Shosh Lahav

Following the Ministry of Tourism’s policy of promoting and encouraging the addition of storage facilities in Israel, assistance in establishing and expanding hotel facilities is also published this year. The ministry is working to return tourism traffic to Israel and as a result of the recovery of the tourism industry following the severe corona crisis that befell us and believes that right now it is right to realize the great potential of investment in industry, entrepreneurship, tourism infrastructure and tourism experience.

The purpose of the procedure is to specify the assistance route for the construction and expansion of hotels, in the framework of which an “approved enterprise” status will be granted in accordance with the Capital Investment Encouragement Law, 5719-1959 (hereinafter: “the Law”), subject to the areas set forth in the Capital Investment Encouragement Order. A-2021 on its amendments (or any other order that may replace it) and in accordance with the terms of the procedure.

Moreover, in accordance with Government Decision No. 120 of 21.6.2020 regarding “Assistance to encourage tourism in the city of Tiberias”, projects in the city of Tiberias will be granted additional administrative grants amounting to up to NIS 20 million from the total investment manager budget allocated to this procedure, in the following allocation:

A. Special administrative supplement – at a rate of 8% (a total of 28% grant).
B. Special administrative supplement for popular hotels – at a rate of 13% (a total of 33% grant).

It is clarified that the administrative grant will be given in addition to the grant in accordance with the law and in accordance with the procedures of the Directorate of Investment in Tourism.

This procedure only applies to the transition between the “Building Permit Track” and the “Investment Plan Track” due to the expected approval of the state budget for 2021 only during November 2021, which does not allow the applications in the other tracks to be examined by the end of the year.

The budget for this procedure is NIS 90 million, this budget is included in the state budget for 2021, which has not yet been approved by the Knesset.

It will be clarified that if the state budget for 2021 is not approved, the Investment Manager will not be able to approve the applications submitted under this procedure.

It should be emphasized that by the end of 2021, the investment management procedures for 2022 will be published as every year. So that the budget for the “Investment Plan Track” and “Building Permit Track” tracks, which are not part of the 2021 procedure, will be reflected in the Directorate’s procedures for 2022.

An abbreviated address for this article: https://www.ias.co.il?p=119776

Source: IAS by www.ias.co.il.

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