Bilateral Tourism Agreement Signed between Israel and India - Expect Doubling of tourism in 3 Years.

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Bilateral tourism agreement signed between Israel and India - Doubling of tourism expected within three years.

A bilateral tourism agreement between Israel and India was signed today in Israel between Minister Stas Miseshnikov and his counterpart from India, Mr. Subodh Kant Sahai.

The goal of the agreement is to double the number of tourists traveling between the two countries within the next three years. Additional flights between India and Israel are expected as a result of this agreement. Private airlines from both countries are anticipated to begin charter service in order to increase flight frequency.

India, which currently has 200,000 hotel rooms, needs to build another 200,000, noted Mr. Subodh Kant Sahai, adding that India has adopted the G-20 declaration that the tourism industry is a central economic engine for growth. According to the Indian Tourism Minister, India understands that tourism increases the rate of employment among the working classes, women and people living in the periphery.

A joint working forum comprised of representatives from both ministries will be established in order to swiftly implement the agreement. India is particularly interested in developing a rural tourism industry and expects to learn about this sector from Israel while seeking greater tourism from India to Tel Aviv.

Currently, tourism from the Far East, and particularly India has grown exponentially over the last few years, increasing 30% just in the last few months, with a doubling from 20,000 tourists in 2010 to 40,000 tourists in 2011. This represents an injection of about $40 million annually into Israel's economy. India represents the largest source of tourism to Israel compared to any other Asian country. In total approximately 160,000 tourists visited Israel from the Far East in 2011.


BACKGROUND INFORMATION ON INCOMING TOURISM FROM INDIA TO ISRAEL


The overall marketing budget for 2012 for the Far East (including India) totals NIS 6 million and, according to Tourism Ministry figures, about 160,000 tourists visited Israel from the Far East in 2011.

Given the significant and as yet unrealized potential that India represents as a rapidly growing tourism market (with a population of 1.21 billion), the Tourism Ministry has chosen to focus its Asia marketing activities on India. The ministry will open a representative office in Mumbai during the course of this year and invest about NIS 2.5 million in marketing activities with the goal of significantly increasing the number of incoming tourists who see Israel as a leisure and touring destination. The Christian communities in India, which number about 20 million, consider a visit to Israel as the realization of their religious beliefs and aspirations.

The Tourism Ministry is also working to ease the procedures in order to facilitate smoother and easier land and border crossings for the Indian tourist wishing to visit Israel. The ministry is also investigating the possibility of easing visa restrictions and the opportunities to increase air traffic which currently stands at 3 direct flights a week between Mumbai and Tel Aviv. The Tourism Ministry is of the opinion that cooperation between the countries is required in order to persuade the relevant airlines to realize their commitments within the airline agreements.


CHARACTERISTICS OF THE INDIAN TOURIST TO ISRAEL
(SOURCE: THE 2011 TOURIST SATISFACTION SURVEY )

Religion
37% of all tourists arriving to Israel in 2011 defined themselves as Catholic; 7% as Protestants and 9% from other Christian denominations; 5% as Muslim and 37% from other religious affiliations.

Income level
28% of respondents defined their income level as above average; 71% as average and 1% as below average.

First time visit
83% of respondents came to Israel for the first time with 17% arriving on a return visit.

Reason for visit
48% of respondents gave the reason for their visit as pilgrimage; 30% came on business; 14% for sightseeing; 5% for conferences with just 1% arriving to visit family.

Accommodation
93% stayed in hotels; 1% with relatives and 2% in youth hostels or rented apartments. Of those staying in hotels, 85% stayed in medium standard hotels with 12% responding that they stayed in superior standard hotels. 42% were on full board; 35% on BB basis and 23% on half board.

Age

58% of all incoming tourists from India in 2011 were in the age group 35-54; 11% within the age group 55-64; 19% were 25-34; 8% were under the age of 24 and 4% were over 65 years.

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