PM's economic adviser: More state intervention in tourism needed - Haaretz

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Thu., November 22, 2007 Kislev 12, 5768

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PM's economic adviser: More state intervention in tourism needed

By Irit Rosenblum

Tags: Israel

"Too little has been done in Israel for tourism, and what has been done, has been patchy," Professor Manuel Trachtenberg, chairman of the National Economics Council that operates under the auspices of the Prime Minister's Office, said yesterday.

Speaking at the Hoteliers Conference in Jerusalem, during a session on government involvement in the promotion of incoming tourism, Trachtenberg said that the handling of tourism is one of the state's major economic failures.

"I don't understand why a central organization like Maison de France," the French marketing authority, "cannot be formed to coordinate between all government ministries and act in conjunction with the private sector," Trachtenberg said.

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The government must also take urgent action to improve physical infrastructure at tourism sites, he added. "Sometimes I am shocked by the neglect I see at historical and national sites."

With regard to air travel, Trachtenberg expressed support for an "open skies" policy.

Kobi Haber, the Finance Ministry's budget director, offered a more upbeat view. "One should look at the half full glass in tourism," he said. "The situation is not so terrible."

Haber also argued that "the government's main role is not to hinder the private sector. The private sector understands the business better than government ministries do."

Addressing the issue of hotel room shortages, Haber said that he believes the government should provide assistance in this area by shouldering some of the risk to entrepreneurs seeking to build hotels.

Haber told participants that the government has already allocated NIS 200 million toward construction of new hotels in the next few years and would approve more if needed.

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