A two-year pilot program established at the Industrial Cooperation Authority (ICA) at the Israel Ministry of Economy and Industry is set to give a significant boost to business tourism in Israel, which is considered a central engine for growth in the tourism industry.
Under the new outline announced on Sunday, the ICA will within the framework of government tenders for foreign companies for business collaborations and reciprocal procurement temporarily allow recognition of services and/or products that include accommodation services for business tourism, corporate vacations, conferences, seminars for no less than $75,000 per event. Such business tourism activities will be recognized as collaboration within the framework of the company’s commitments to indirect collaboration, and not instead of direct collaboration in the project in which the company won the tender. In addition, regular tourism expenses that are not part of the business tourism events will not be recognized.
While the average tourist expenditure in Israel is about $1400, it is estimated that the average expenditure of a business tourist is significantly higher. In addition, this tourism represents an opening for additional investments in the future. As a result, tourism authorities around the world focus on and work to expand this tourism sector.
In the first stage of this program, the Tourism Ministry and the Economy Ministry will approach international companies currently committed to reciprocal procurement and market this new outline.
“This move has the potential to significantly help the tourism industry, which was so severely damaged during the pandemic and has yet to fully recover. The Israel Government Tourist offices around the world will work with the Ministry of Economy and those companies which will receive the incentive details, in order to bring as much business tourism as possible to Israel,” Tourism Ministry Director-General Dani Shahar said in a statement.