The Market for Travel and Tourism in Israel Euromonitor International October 2006 Travel and Tourism Israel List of Contents and Tables 1. EXECUTIVE SUMMARY..................................................................................................................................1 2. OPERATING ENVIRONMENT........................................................................................................................2 2.1 Macroeconomic Parameters ..................................................................................................................2 Table 1 Operating Environment Parameters 2000-2005..............................................................3 2.2 Political and Legislative Environment ...................................................................................................3 2.3 Terrorism and Security...........................................................................................................................3 2.4 Sustainable Tourism...............................................................................................................................4 2.5 Positive Growth Factors ........................................................................................................................4 Summary 1 Positive Growth Factors .................................................................................................4 2.6 Negative Growth Factors.......................................................................................................................4 Summary 2 Negative Growth Factors................................................................................................5 3. COMPETITIVE ENVIRONMENT ...................................................................................................................5 3.1 Recent Mergers and Acquisitions...........................................................................................................5 Summary 3 Major Mergers and Acquisitions 2001-2005 ..................................................................6 3.2 Key Strategic Alliances ..........................................................................................................................6 3.3 Leading Company Profile: Dan Hotels Corp.........................................................................................7 Summary 4 Dan Hotels Corp: Company Factfile 2005......................................................................7 Summary 5 Dan Hotels Corp: Summary of Key Events 2000-2005..................................................7 Summary 6 Dan Hotels Corp: Operational Indicators 2005...............................................................8 3.4 Leading Company Profile: El Al Israel Airlines Ltd ..............................................................................8 Summary 7 El Al Israel Airlines Ltd: Company Factfile 2005..........................................................8 Summary 8 El Al Israel Airlines Ltd: Summary of Key Events 2000-2005 ......................................9 Summary 9 El Al Israel Airlines Ltd: Operational Indicators 2005...................................................9 3.5 Leading Company Profile: Fattal Hotel Management Ltd.....................................................................9 Summary 10 Fattal Hotel Management Ltd: Company Factfile 2005 ...............................................10 Summary 11 Fattal Hotel Management Ltd: Summary of Key Events 2000-2005............................10 Summary 12 Fattal Hotel Management Ltd: Operational Indicators 2005 ........................................10 3.6 Leading Company Profile: Natour Ltd.................................................................................................10 Summary 13 Natour Ltd: Company Factfile 2005.............................................................................11 Summary 14 Natour: Summary of Key Events 2000-2005................................................................11 Summary 15 Natour: Operational Indicators 2005 ............................................................................11 4. DEMAND FACTORS........................................................................................................................................12 4.1 Leave Entitlement.................................................................................................................................12 Table 2 Leave Entitlement: Volume 2005.................................................................................12 4.2 Holiday Demographic Trends..............................................................................................................12 Table 3 Holiday Demographic Trends 2000-2005 ....................................................................13 Table 4 Holiday Takers by Sex 2000-2005 ...............................................................................13 Table 5 Holiday Takers by Age 2000-2005...............................................................................13 4.3 Holiday Length of Trip and Seasonality...............................................................................................14 Table 6 Length of Trip: 2000-2005 ...........................................................................................14 Table 7 Seasonality of Trips: 2005............................................................................................15 5. TOURISM PARAMETERS..............................................................................................................................15 5.1 Balance of Tourism Payments..............................................................................................................15 Table 8 Balance of Tourism Payments: Value 2000-2005 ........................................................15 5.2 Incoming: Arrivals and Receipts..........................................................................................................15 Table 9 Arrivals: 2000-2005......................................................................................................16 Table 10 Incoming Tourist Receipts: 2000-2005 ........................................................................17 Table 11 Incoming Tourist Receipts % Growth: 2000-2005.......................................................17 Table 12 Expenditure per Arrival: 2000-2005.............................................................................17 5.3 Incoming: Country of Origin................................................................................................................17 Table 13 Arrivals by Country of Origin: 2000-2005 ...................................................................18 5.4 Incoming: Mode of Transport and Purpose of Visit.............................................................................19 Table 14 Arrivals by Method of Transport: 2000-2005...............................................................20 Table 15 Arrivals by Purpose of Visit: 2000-2005......................................................................20 Euromonitor International Page i Travel and Tourism Israel 5.5 Outgoing: Departures and Expenditure...............................................................................................21 Table 16 Departures: 2000-2005 .................................................................................................21 Table 17 Outgoing Tourism Expenditure: 2000-2005.................................................................21 Table 18 Outgoing Tourism Expenditure: 2000-2005................................................................22 Table 19 Expenditure per Departure: 2000-2005 ........................................................................22 5.6 Outgoing: Destination..........................................................................................................................22 Table 20 Departures by Destination: 2000-2005.........................................................................23 5.7 Outgoing: Mode of Transport and Purpose of Visit.............................................................................23 Table 21 Departures by Mode of Transport: 2000-2005 .............................................................24 Table 22 Departures by Purpose of Visit: 2000-2005..................................................................24 5.8 Domestic: Trips and Expenditure.........................................................................................................25 Table 23 Domestic Tourist Trips: 2000-2005..............................................................................25 Table 24 Domestic Tourist Expenditure: 2000-2005...................................................................25 Table 25 Expenditure per Domestic Trip: 2000-2005 .................................................................26 5.9 Domestic: Trips by Destination............................................................................................................26 Table 26 Domestic Trips by Destination: 2000-2005..................................................................26 5.10 Domestic: Trips by Mode of Transport ................................................................................................27 Table 27 Domestic Trips by Mode of Transport: 2000-2005 ......................................................27 5.11 Tourism Spending.................................................................................................................................27