Tourism Ministry Seeks $134M Fund to Expand Israels Hotel Capacity
Israel's Tourism Ministry is proposing a $134 million state-backed loan fund to overcome financing challenges for hotel developers and expand capacity.
Jerusalem, 19 August, 2026 (TPS-IL) — Israel’s Ministry of Tourism has asked the Finance Ministry to examine establishing a NIS 400 million ($134 million) state-backed loan fund to help hotel developers complete financing for new properties and expand existing ones.
Tourism Ministry Director-General Michael Izhakov said recent crises, including the COVID-19 pandemic and prolonged security instability, have weakened developers’ equity and tightened credit conditions, slowing hotel construction despite government investment grants.
The proposed fund would provide supplementary financing to advance new projects and complete hotels already under construction.
The initiative is part of broader efforts to expand Israel’s hotel capacity as the government targets seven million tourists annually by 2030.