Gov't approves changes to NIS 300m. COVID-19 aid package for hotels
Hotels no longer need to make a choice between applying to get a property tax waiver or receiving aid, which provides financial relief for small hotels.
By HAGAY HACOHEN, TOBIAS SIEGALThe Market House Hotel(photo credit: Courtesy)
Tourism Minister Orit Farkash-Hacohen and Finance Minister Israel Katz reported on Sunday that they have agreed to two changes to the NIS 300 million COVID-19 aid fund meant to help Israel's hotel industry.Hotels no longer need to make a choice between applying to get a property tax waiver or receiving aid, which provides financial relief for small hotels.Moreover, hotels that had a revenue of more than NIS 400 m. per year before the novel coronavirus pandemic broke out, will now be able to apply for the grant as well, which helps large hotels. The grant received by each hotel will be decided according to the number of rooms, with more rooms meaning more aid provided. Approved in May, the money was earmarked to help hotels affected by the two nationwide lockdowns imposed by the state. The first was imposed during Passover; the second is still in effect. A source within the tourism sector explained that the revised conditions for receiving aid are significant, as they include small hotels and not just big ones and powerful chains. The revision, the source said, will prevent business owners from making an impossible decision and allow them to receive both types of these justified grants.Katz said that "this decision manifests yet another step in bringing back Israel's economy and allowing it to start growing again."Amir Haik, head of the Israeli Hotel Association, thanked the Tourism and Finance ministries for their help."I'm afraid that the hotel industry is experiencing some difficult days with an unknown future ahead of us," Haik said. "It's encouraging to know that the Finance Minister and the Tourism Minister are aware of the difficulty and that their door is always open."
