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Friday May 27, 2005

Rising tourism fuels opening of new Jerusalem hotel

by avi krawitz
jerusalem post service

jerusalem | For the first time since the outbreak of the intifada in September 2000, a new hotel has opened in Jerusalem. Located off Route 1 in East Jerusalem, the $60 million Grand Court Jerusalem welcomed its first guests in March, amid little pomp and ceremony, setting the hotel into full operation in what’s said to be the strongest cluster of hotels in the city.

The opening signifies newfound optimism for the country: a boom period in Israel’s tourism industry.

Sandwiched between the Novotel Jerusalem and the Olive Tree Hotel, the Grand Court completes the row of hotels that have focused on the Christian pilgrim market. Over the last four years, the strip became symbolic of the lull in foreign visitors to the country. The symbolism was all the more poignant due to the hotels’ location between Van Passen and St. George streets, which separate the Old City from the new city and, more significantly, East Jerusalem from West Jerusalem.

Following the successful openings of the Olive Tree and Novotel, construction of the Grand Court began at the height of the tourism bubble in 2000, as the industry continued to gear up for the influx of tourists.

The good times didn’t last, however, and with the outbreak of Palestinian violence in the city, the three hotels bore the brunt of the economic downturn and were dramatically impacted by the lack of tourist confidence in the country.

While the Grand Court project was put on hold a year after its initiation, the Olive Tree closed for three months due to its extreme low-occupancy rate after only one year of operation. Only the Novotel remained open throughout the hard times, and had to rely on its Israeli clientele to get through the bleak years.

“The Israeli market and in particular the Orthodox community kept us afloat over the last few years,” said a Novotel representative. “Our location created a problem even with Israelis [because they] were afraid to be near East Jerusalem.”

Shalom Uman, general manager of the Olive Tree, said that during the three years since the hotel’s return to operation, it just managed to survive, but in the last six months it has reached nearly full occupancy almost every day.

An example of the improving trend: rows of tour buses have returned to St. George Street, with several groups, mainly Christian ones, booking into all three hotels and helping to place Israel back on the global tourist map. The increase in visitors prompted the resumed construction at the Grand Court seven months ago.

“We decided to continue building due to the prospect of the tourism recovery,” said David Ashkenazi, the hotel’s general manager. “Based on a steady increase of tourist traffic over the last year and reservations made already, we are very optimistic for a good year and beyond.”

Jonathan Harpaz, director-general of the Jerusalem Hotels Association, echoed the sentiment. The relatively safe and tranquil atmosphere in Jerusalem, he said, has created confidence in overseas-based travel agents and consumers alike.

Harpaz said the association’s forecast remained extremely positive, provided nothing disturbs the geopolitical situation.

The Hotels Association reported that overnight stays in Jerusalem rose 21 percent to 99,000 for foreign tourists in February compared to the same period in 2004, while the number for Israelis fell 13 percent to 38,000 bookings. The total number of overnight lodgings in the city rose to 1.34 million in 2004, representing an increase of 48 percent from the previous year.

ISRAEL IN THE GARDENS

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