Prime Minister Ehud Olmert announced that the ministerial committee for strengthening Haifa and the North has decided to grant Haifa Area A status for tourism until 2011, and Area B status for high-tech companies until 2010. Haifa will also receive NIS 165 million mainly for the rehabilitation of commercial areas.

Olmert told a Haifa Chamber of Commerce conference that the decision recognized that "Haifa had sustained substantial damage during the conflict in the North, and was among the hardest hit authorities," adding that "Haifa, the third-largest city in Israel, is a central metropolitan area for 300,000 residents, a center for employment and services serving the North, and an economic anchor for the whole area."

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The Tourism Ministry and Haifa municipality will prepare a NIS 30 million plan to promote the city. In addition, the ministry will further develop infrastructure to strengthen tourism to the city.

The decision will also make Haifa and its surrounding area eligible for substantial tax benefits. The benefits include a six-year waiver of company taxes as well as a partial waver for an additional year, or a grant equivalent to 10 percent of all fixed asset investments. The chief scientist of the Matam technology center will also receive NIS 33 million to develop a technology
business incubator in Haifa.

The state will provide NIS 40 million for the rehabilitation of industrial areas in Haifa, the Checkpost area, and the Checkpost Northern Industrial Park, while Haifa will invest an additional NIS 50 million.

Two professional teams will submit their findings to the committee regarding the establishment of an international airport in Haifa as well as expansion of the Haifa port.

Olmert's announcement is "truly good news for the residents of Haifa, and will assist us to move Haifa forward," Haifa Mayor Yona Yahav said. "Haifa is a
well-developed high-tech area. The decision to grant it Area B status will bring new international and local industries to the city, benefiting thousands of students studying here."