The Bouskila Compound near the tomb of Rabbi Shimon bar Yochai on Mount Meron was demolished by the National Unit for Enforcing Planning and Construction Laws and the Israel Police on Monday morning.
The compound was built illegally and obstructed escape routes from the area.
During Lag Ba’omer festivities last year, 45 people were crushed to death in a narrow corridor.
The corridor itself was demolished a week ago.