Israel hotels compare badly with their overseas counterparts, Haaretz reported.
“We’re considered expensive by European standards, but we lack European conditions,” a tour operator said.
A World Economic Forum 2017 report ranked Israel 95th in hotel costs with an average price of $204 per night at a luxury hotel. The United States was 54th at $124 a night.
Although a record three million foreign tourists visited Israel this year, the figure is far higher in Jordan and even in strife racked Egypt.
Hoteliers blame the high rate on higher labor costs, which account for 34% of their expenses; kashrus, which takes 3% of their revenues; municipal taxes, which cut out another 2.5% to 3%; and the cost of armed security.
A result of all this is the rising popularity of Airbnb rented apartments. 300,000 people rented such apartments in Israel between January and July, 25% more than last year.