The government approved on Sunday the allocation of approximately NIS 27 million to develop and construct hotels in the West Bank to promote tourism in the area.
The stated goal of the initiative is to build hotels to transform the West Bank from a “day-trip destination” into a destination for overnight stays, allowing tourists to extend their visits.
The government also plans that the initiative will boost the local economy by increasing tourism. According to the Tourism Ministry, the lack of available planning reserves for hotels is one of the main obstacles to developing the tourism industry in the West Bank.
As part of the decision, the ministry is expected to promote statutory planning for hotel development. It will also take steps to enable the realization of development rights and the marketing of land plots, based on a mapping study that the Tourism Ministry said it will conduct.
To do this, the government is expected to allocate NIS 7m. from the Tourism Ministry’s ongoing budget to be distributed equally between 2026 and 2030.
An additional NIS 20m. allocation from the ministry’s development budget has been approved for grants to support the establishment, conversion, and expansion of hotels in the area.
The stated grant rate will be up to 28% of the approved investment plan.
Ministry to create committee tasked with awarding grants
The grants will be awarded through a committee appointed by the director-general of the Tourism Ministry, which will operate according to a procedure expected to be published.
The grants are intended to reduce the economic feasibility gap for investors and enable the execution of hotel projects.
The Tourism Ministry stated that over the past decade, about NIS 115m. has been invested in tourism infrastructure in the West Bank, while noting that this was compared to the large sum of more than NIS 2 billion invested in other parts of the country.
Tourism Minister Haim Katz praised the plan, saying that the approved program will “enable the realization of the enormous tourism potential in Judea and Samaria.”
“For the first time, we will lead a comprehensive initiative combining planning, infrastructure development, the creation of land reserves for hotels, and a dedicated track to encourage hotel construction,” Katz said.
“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,” he added.
West Bank areas A, B, C
Under the 1990s Oslo Accords between Israel and the Palestinian Authority, the West Bank was divided into three areas – A, B, and C – with Area C under full Israeli control.
Israel’s roughly 500,000 settlers live mainly in Area C, with most settlements considered legal under Israeli law and built on state land through government-approved decisions.
Right-wing ministers and lawmakers have continuously pushed for Israeli sovereignty over all areas of the West Bank, drawing sharp criticism and condemnation from leaders of various countries worldwide.
