THE DETROIT JEWISH NEWS , Friday,,September 20,1985
SWEET TREATS
NEWS
We wish our family and friends a
very healthy, happy and prosperous
New-Year_
Order Your
Holiday Dessert Trays
43
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The Lakers & The Parrs
Israel Tourism Up,
Inflation Down
Jerusalem (JTA) — The gov-
ernment's tough economic au-
sterity program has dealt a
major blow to inflation, prelimi-
nary figures for August have
indicated. But civil service em-
ployees seem to be the first
casualties of drastic measures
taken to reduce government ex-
penditures in the war against
inflation, according to a confi-
dential report published in
Haaretz.
Figures for the first two
weeks of August showed the
cost-of-living index up only 3.5
to 4 percent above the July av-
erage, compared to a monthly
inflation rate of 20 percent-plus
before the government's pro-
gram was announced July 1.
Economic experts believe the
full-month figures will reflect
the trend of the first two weeks.
The experts credited the gov-
ernment's measures for the im-
provement. They said August
inflation would have been even
lower but for an unexpected up-
surge in the prices of fruit and
vegetables. This was attributed
to a between-the-seasons shor-
tage which tripled or quad-
rupled the prices of such popular
items as tomatoes and cucum-
bers.
The good news on the infla-
tion front greeted Finance
Minister Yitzhak Modai on his
return from Washington. He
predicted an August inflation
rate of four percent which, he
said, was what the government
was aiming for. He warned
however that even that
achievement is not good enough.
Inflation will have to be curbed
even more before economic re-
covery is firmly on track, Modai
said.
Israel also reported a boom in
tourism over the past 12 months
and leaders of the industry are
confident they can repeat the
success and do even better in
the year ahead.
They told a press conference
that a record 865,000 tourists
visited Israel in the first six
months of 1985, a 19 percent in-
crease over the same period last
year. In the last 12 'months, 1.5
million tourists came, represent-
ing $1.5 billion in revenue.
Rafi Farber, Director General
of the Ministry of Tourism, said
Israel could increase its tourist
business without investing in a
larger infrastructure. He
pointed out that there are now
some 30,000 hotel rooms in the
country which can accommodate
more than two million tourists a
year. This means Israel can ab-
sorb an additional 600,000 vis-
itors without building more
hotels.
Leaders of the Jerusalem
Hotel Association said they
would embark on an unprece-
dented marketing effort to in-
crease the number of tourists
coming to the capital. They will
concentrate on international
fairs, publicity drives, seminars
and special sales incentives. The
hoteliers plan to invest about
$200,000 in the drive.
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