2008 marks record-breaking year for returning Israeli citizens

The number of returning citizens has increased by a record-breaking 95-percent this year and is, for the first time in Israel's history, higher by 50 percent of the number of new immigrants, according to the Absorption Ministry's annual statistical roundup for 2008 which was released Sunday.

The data, which pertains to people who moved this year to Israel under the Law of Return for Jews and their relatives, shows the number of returning Israelis has increased from 4,535 in 2007 to approximately 9,000 returnees in 2008.

However, this hike offsets a 25-percent drop in the number of new immigrants, from approximately 20,000 in 2007 to some 15,000 who have arrived in the country since January 1, 2008.

By contrast, immigration from South Africa will have increased by some 90 percent by January, with the arrival of the 360th immigrant from that country, compared to only 191 South African immigrants last year.

In an interview with Haaretz about the annual report, Erez Halfon, the Absorption Ministry's director-general, revealed that his office is working with the Jewish Agency on getting the government to approve a newly-completed plan for increasing immigration from South Africa.

The plan, Halfon said, would "significantly increase grants which are meant for housing for immigrants from South Africa." He explained this was needed because of "the difficult situation in South Africa, which is making Jews there more interested in emigrating than ever before." Halfon added: "We have to do everything now to facilitate their immigration into Israel, and everything to prevent them from leaving for Canada or Australia." Halfon also said he hopes to have the program approved in 2009.

In explaining the increase in the number of returnees, Halfon said that it mostly owes to a far-reaching tax reform plan that the government announced earlier this year which, in a bid to attract expatriates and Western immigrants, offers a 10-year exemption on taxation of out-of-state income and other concessions. When asked whether the increase could also be a result of the world financial crisis, Halfon said that although "this had some effect" the data does not suggest any substantial increase in demand for immigration over the past three months.

"We expect to see the results of the crisis next year, when the number of returnees will even break the current record," he said. "According to our projections, which rely on the number of applications we are handling, we will see the arrival of another 12,000 returnees by 2010." Halfon added that the ministry still regarded bringing in new immigrants as its most important task, with attracting returnees as a "second priority."

Immigration from the United States and Canada accounted for 20 percent of all newcomers, with 2,910 people - a marginal drop of 3.5 percent compared to the 3,011 North American immigrants Israel accepted in 2007. The number of immigrants from the U.K. decreased by 16 percent this year, from 645 to 541 individuals, while immigration from Australia and New Zealand rose by 19 percent, from 142 in 2007 to 176 this year.

Proportionally, French immigration has slightly increased its share of the pie, but numerically it has plummeted by 33 percent - from 2,715 people last year to 1,800 arrivals in 2008.

The former Soviet Union provided 5,331 newcomers, who made up 35 percent of all arrivals. Immigration from Ethiopia more than halved, with only 1,553 arrivals compared to 3,616 last year.