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May 27, 1994 - Image 47

Resource type:
Text
Publication:
The Detroit Jewish News, 1994-05-27

Disclaimer: Computer generated plain text may have errors. Read more about this.

YOU CAN AFFORD
$1,000,000 LIFE INSURANCE

(

war, terrorism and the intifada,
the general trend has been an an-
nual 10 percent increase in the
number of tourists, Mr. Rosental
says.
Those in the tourism business
were expecting a bumper year in
1994, but that was before the He-
bron massacre and subsequent
terror attacks. The first quarter
showed a 13 percent increase
from the same period last year in
tourist bed nights.
Mr. Rosental says there has
been a slump following the vio-
lence, but it is not a drastic one.
"It won't be the peak year we
thought it would be, but there
will still be an upward trend," he
says.
Hotels in Israel have an an-
nual occupancy rate of 69 percent,
according to Hotel Association fig-
ures.
Mr. Rosental, who calls this a
good figure, says it includes some
destinations which have higher
occupancy rates and the high sea-
son, when there is a generally
higher occupancy rate.
He says Israel is lucky to have
several high seasons, including
Pesach, Easter (which in a "good"
year fall on separate dates),
Christmas and Rosh Hashanah.
In Eilat, the high season runs
from October through April.
Mr. Rosental says it takes
three to four years to get from the
planning stage to a completed ho-
tel room. Thus, if the coming
years are expected to be peaceful,
with a concomitant increase in
tourism, the time to start build-
ing the hotel rooms is now.
The average cost of building

a hotel room is between $100,000
and $120,000, Mr. Rosental says.
He is not concerned about the en-
trepreneurs who are investing in
new hotels.
"They are not going to build ho-
tels in which people won't stay,"
he says.
Mr. Rosental admits that
peace could have its economic dis-
advantages. At present, the av-
erage tourist spends 12 days and
$1,055 in Israel. This is second
only to the United States, where

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the average expenditure per
tourist is $1,077.
If the borders were open, Mr.
Rosental says, tourists might
spend less time in Israel and take
the opportunity to also see the
neighboring countries, thus de-
creasing the average tourist ex-
penditure.
On the other hand, he says, if
that kind of situation emerges,
the overall increase in the num-
ber of tourists would probably be
so large as to offset this.
There are some 8 million
tourists a year to the area, which
includes Israel, Egypt, Jordan
and Syria. They leave about $5
billion in the region.
"I believe that after five years
of peace, there will be 20 million
tourists who spend $15 billion,"
Mr. Rosental says. El

LEADING ISRAELI STOCKS
TRADED ON
U.S. EXCHANGES

Symbol

Name

Exchange

May 13 May 20 Change

SCIXF

Scitex

NASDAQ

'17.50

'16.63

-$0.88

ECILF

ECI Telecom

NASDAQ

$16.13

'17.25

+$1.13

TEVIY

Teva Pharm

NASDAQ

'24.75

$23.25

-$1.50

I EC

PEC Israel

NYSE

'28.88

$28.38

-$0.50

ELBTF

Elbit Computers

NASDAQ

'31.00

'29.63

-$1.38

ELT

Elscint LTD

NYSE

$2.50

$2.50

'0.00

ELRNF

Elron Electronics NASDAQ

'14.38

'13.88

-$0.50

TAD

Tadiran

'19.25

'18.75

-$0.50

NYSE

rem um base

CMVT

Comverse

NASDAQ

'9.31

$9.25

-$0.06

LANTF

Lannet Data

NASDAQ

'8.25

'7.38

-$0.88

ISL

First Israel Fund NYSE

'15.00

'14.00

-$1.00

Source: Allen Olender, Prudential Securities,
West Bloomfield.

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