Incentives, Grants and Benefits
Investors in the tourist complex will be given significant incentives, grants and benefits which will increase the attractiveness of investment in the complex.
Encouragement of Capital Investments Law
The Encouragement of Capital Investments Law supports investments in the tourism industry in general and hotelkeeping in particular, by way of economic incentives. Under this law, effected by the Investment Administration of the Ministry of Tourism, the State offers benefits, grants and tax reliefs to investors in hotels and tourist attractions.
• For the construction of hotels, investors will be entitled to a 20% grant in accordance with approved construction plans and hotel rating.
• For the construction of tourist attractions, investors will be entitled to a 10% grant in accordance with the approved plan.
• A hotel recognized as an “approved enterprise” will be entitled to tax benefits, including:
*Two-year tax exemption, beginning once profit is accumulated and no later than 12 years from date of launch. In addition, a reduced tax payment at a rate of 25% for a period of 5 additional years.
*A company owned by foreign investors is entitled to a 10-year benefit period and a reduced tax rate of 10%-15% depending on the amount of the foreign investment.
*Foreign investors are entitled to all benefits available to local investors as well as additional benefits, such as corporate tax reductions (based on investment amount).
Green Building Incentive
In order to curtail negative environmental ramifications and preserve natural monuments, statutory outline scheme provisions lay down directives to encourage durable green building. An investor who implements 5 provisions that accord with said green building standard, as specified under the Green Building Appendix attached to the outline scheme, will be entitled to 5% increase in the number of rooms and in the total building area. Meeting a more extensive scope of green building provisions (10 or more) will entitle the investor to an additional 5% in the number of rooms and in the total building area (10% increase in total).
Government Investment in Infrastructure
The Israeli Government invested, and continues to invest through DSPG, hundreds of millions of NIS in the Dead Sea Valley Complex. These investments include the development of infrastructure (sewage, electricity, drainage, roads, etc.), and development to the highest degree of the entire public domain (promenade, bicycle trails, pedestrian walkways, sitting areas, shading, viewpoints, flora etc.). Thus in order to create a modern an attractive tourist complex.
Building Incentive to Existing Hotels
In order to promote an upgrade in existing hotels, the provisions of the statutory outline scheme define a number of terms. The implementation of at least one will entitle an addition of 10% to building rights, an addition of 10% to the number of accommodation rooms, and an addition of two floors to the number of floors approved before the outline scheme came into effect. The terms include minimization in use of low building levels that currently exist, fortification of buildings to withstand earthquakes, addition of parking spaces and improvement of appearance and surroundings.
The incentive will also be given to a hotel that underwent comprehensive appearance renovation during the 3 years preceding the approval of the outline scheme.