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Hotel profits rose 12 percent in 2012 (Globes, Tel Aviv, Israel)

By Sapir Peretz, Globes, Tel Aviv, IsraelMcClatchy-Tribune Regional News

June 05--Even has many hoteliers have been complaining about the cost of living and low margins, which raise the cost of holidays in Israel, the Central Bureau of Statistics today announced that the hotel industry made a profit (before amortization and financing expenses) of NIS 1.8 billion in 2012, similar to the all-time high posted in 2010, and 12 percent more than in 2011.

The Central Bureau of Statistics "Hotels Survey -- Income and Expenses" is based on an analysis of hotels' financial reports for 2010, on which it made estimates for 2011 and 2012, using a regressive linear model based on current figures for hotel overnights, occupancy rates, and proceeds.

The Central Bureau of Statistics states that after the low point in tourism in 2001-03, since 2004, hotels' revenue has steadily increased, except for a 7 percent drop in 2009 following Operation Cast Lead in Gaza at the start of that year. Hotels' revenue in 2011 was similar to 2012, and revenue in 2012 was 3 percent higher.

Since 2004, hotels' expenditures, including labor, have risen more slowly their revenue, except in 2007. Hotels' expenditures only fell in 2009.

During the 2001-03 slump, hotels' labor cost was 40-44 percent of their revenue. Their labor cost fell to an average of 34 percent of revenue in 2004-10.

The breakdown of hotels revenue and expenditures by quality and location found that, in 2010, hotels in Eilat had the highest revenue (28 percent of all hotels' revenue), hotels in Tel Aviv accounted for 19 percent of total revenue, and hotels in Jerusalem accounted for 17 percent.

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(c)2013 the Globes (Tel Aviv, Israel)

Visit the Globes (Tel Aviv, Israel) at www.globes.co.il/serveen/globes/nodeview.asp?fid=942

Distributed by MCT Information Services NYSE:LTD,



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