Recovery in Eilat: No free rooms during holidays

After many months of uncertainty, this summer Eilat experienced peaks in demand that had not been recorded in the city for many years - if at all, we set out to find out what made the Israelis return and wash the city despite the threats of the Houthis, how hotels prepare for nearly 100% occupancy and how long the celebration lasts This is expected to continue (hint: don't count on vacant rooms on Rosh Hashanah)

"Five months of economic catastrophe", is how the mayor of Eilat Eli Lankri calls the period between October 2023 and March 2024 that passed through his city. "We paid a heavy price as a city that relies mostly on tourists. This industry is the first to be affected - and the last to recover", he adding.

This summer brought with it an increase not only in temperatures but also in the demand for vacations in the southern city of Israel - and Lankri can finally look ahead with optimism. "The feeling is that now there is even more local tourism than last year", he boasts.

The summer months are the hot tourism months for families with children, and Eilat is among the hottest destinations in Israel, literally. After a difficult period that has passed over the city since the outbreak of the war, it seems that tourism is raising its head and vacationers are returning to visit the hotels and wade in the pools.

"When the war started, of course no one was busy at that time with tourism and recreation, it never crossed our minds," the mayor recalled. "You also have to remember that Eilat was and still is threatened by the Houthis and the pro-Iranian militias from Iraq and Syria, so it too became a kind of front.

The turning point began towards the end of February, when a large majority of the 60,000 evacuees who were in Eilat left in favor of alternative residences, and then hotel rooms actually became available and it was possible to return and bring tourists. We then realized that the time was ripe to try and bring the vacationers back to Eilat.

"People have already started looking for peace of mind, they wanted to ventilate a little, to relax a little from the war, and we gave it to those who chose it. We encouraged this by a big campaign we did, we also gave vouchers to businesses to encourage people to come to Eilat, and it was successful. Since then we have seen an increase in the number of vacationers and visitors to Eilat, and the city is recovering and regaining itself in terms of tourism."

However, Lankri emphasizes, "it should be remembered that another economic anchor, perhaps the second most important, the port of Eilat, is completely shut down following the closure of the maritime route to the Red Sea. There is another damage to the city here, a serious and not easy damage, but the main economy of the city, tourism, is recovering to our joy, and we hope that the situation will continue.

"As it stands now, we are expecting a very busy summer. At the beginning of the war, businesses here were on the verge of collapse, hundreds of businesses were closed, and some even collapsed. That's why the recovery you see now in the city is miraculous in my eyes."

A record-breaking summer

On normal days, Lankri points out, about 2.6 million Israelis visit Eilat a year, with the largest concentration being during the three summer months and the Tishrei holidays, when about a million people come to the city. "I think that in terms of tourism data we will be on last year's numbers and maybe even more", he predicts. "Of course we all live in uncertainty and things can change following developments of this and that.

The country is still at war, heart to heart with the residents of the north. The northern cities are also based on tourism and are suffering a very hard blow now. We are still hosting thousands of evacuees from the north here and continue to take care of all their needs. We see with sad and painful eyes what is happening, and of course we would like to see the north flourish."

Some of those who used to vacation in the north may come to you this year."True, but I think that what you see now in Eilat is a combination of fewer departures abroad and choosing to vacation in Israel. Some do it in the center of the country and some come to Eilat. But of course I would be very happy if the north would come back to itself and recover, and the time has come to return the residents to their homes and see the north flourish."

Lankri is right, and the demand for vacations in Eilat during the summer months is indeed impressive. "As early as March we started to feel a constant increase in bookings, towards May-June it started to explode and of course the peak is now in July-August and the hotels are completely full. I believe that it will also be the same during the Tishri holidays," says Benny Levy, VP of Marketing and Sales at the Isrotel network.

The reasons, Levy explains, are various and varied. "First of all, Eilat is always in demand in the summer months. In addition, flights abroad are very expensive at the moment, and the alternatives are also fewer. "The Israelis do not go to Turkey, for example, a country that has been visited by tens of thousands of Israelis in recent years," Levy says.

He adds: "Other popular destinations, such as Greece, Cyprus and Western Europe, have also become less accessible in terms of the number of flights - which of course affects the price. Hotel prices abroad have also risen. When you compare this with Israel, which is also expensive, many decide to stay in Israel also because of the security situation, and this increases the demand for a city like Eilat."

Lisrotel has eight hotels in Eilat, and Levy estimates that the current summer will be even better than last year's - "but it is difficult to predict in percentages at the moment", he qualifies. "We are in such a dynamic world, that tomorrow everything can change".

Levy also adds that "we at Shrotel are constantly renewing ourselves. For example, we just put on the new WOW Bellissimo show, we opened a new Asian restaurant at the Royal Garden Hotel, we also have an amazing new ninja complex at the King Solomon Hotel. We are constantly looking to bring more added value."

Stay in the country

"Occupancies today are very high, we are at about 90% in our three hotels, quite similar to last year and a little more," says Shimon Kipnis, CEO of Dan Hotels in Eilat and CEO of the Dan Eilat Hotel, adding that "this year the Dan chain also chose to her campaign with a focus on Eilat.

The 'Come to Eilat' campaign has an unusual success. After the very low occupations at the beginning of the war, as soon as people started to leave, we recognized the need and the opportunity. Following the campaign and in addition to it, we are at very high occupancy rates in recent months. Even in July, August, and holidays, everything is expected to be over 90% occupied in the three hotels of the chain, Dan Eilat, Neptune and Dan Panorama, which is a little more than the previous year."

What do you attribute this to?

"I think it's quite clear: people are sitting at home, they are thirsty to go out and spend time with their family, Eilat is a well-known and good place. As mentioned, our campaign must contribute to this, and of course also because today Israelis are a little afraid to fly abroad."

"That's why both we and hotels in other parts of Israel are now enjoying higher occupancy rates than the previous year. The north is also closed, a large part of the B&Bs are in the north and there are also hotels there that are closed, but I think the main reason is that people simply rarely fly to the sand."

At the beginning of the war, the Neptune and Dan Panorama hotels in Eilat hosted evacuees, who had already left, "and Dan Eilat, after the initial shock, had a job that wasn't bad at all, but he wasn't at the occupations we were used to," says Kipnis.

In terms of the innovations in the hotels of the chain in Eilat, "so very recently, says Kipnis, "we opened the Dakota restaurant in Dan Eilat. This is a smoked meat restaurant that works very well with really good occupancy. Also, in Dan Eilat, Cactus - the thin complex will be opened."

"We invested a lot of money in a place that is all thin with new and tastefully designed furniture, we also built five cabanas there at a very high level with places to sleep. We of course continue in our three hotels with activities for children. Dan Eilat has the dynamic pool for children, the Daniland children's club with a huge slide And a pool of streams, which even the adults are enthusiastic about."

No longer a favorite job

Susan Ahrish, CEO of the Vert Hotel Eilat from the Africa Israel Hotels chain, is also optimistic these days, even very so. "In the 266-room hotel, until March, evacuees from Ein Hashur and Ptolemy Eliyahu lived in the hotel. Today we are left with a very small number, about 20 rooms, where evacuees are still staying, and actually from March 15th we started moving back to normal," she says and notes that "the hotel is now at 96% cumulative monthly occupancy, which is really a record for the month of July among all the last years. If I had 10 more floors, I would surely fill them."

To the extent that?

"We have the regular audience of the summer, a returning audience that loves Eilat. The truth is, I was very optimistic even when the situation was difficult and I believed that in the end things here in Eilat would return to their place, that tourism would remain in Israel and that people would eventually return to vacationing in Eilat."

How is it?

"Because of my time and my familiarity with the profession. For example, even during the Corona period when people did not come, as soon as it was possible to go out - Eilat was the first place they came to. The outlet for the people in bad times is Eilat, both for shopping and for recreation."

By the way, it is not only in the summer that you will have difficulty booking a room at the Vert Eilat hotel. "There is nothing to talk to me about until the end of the year, maybe there are only a few places left," Harish boasts and clarifies: "Not only a crowd of couples and families come to the hotels in the city, but also companies and organizations that for a long time did not book in Israel and were vacationing with the employees abroad. In terms of annual revenues, I predict that 2024 will be the best year for us ever, and already as mentioned we feel it."

Do you have enough manpower?

"Until the corona virus, we didn't have this problem. Guys after the army would come to Eilat as a preferred job. The corona virus has changed the perception of life, and people prefer to work from home. The mix of my employees became almost 60% Jordanian and 40% Israeli for most of the year. During the summer days we increase with youth from the age of 16 and with additional workers from Jordan. If one day they close our borders, we will be in trouble."

The plight of workers is well-known, and these days the Eilat Municipality and the Eilat Hotel Association are returning with the "Eilat Relocation" package: a package of benefits that will include free undergraduate studies at Eilat branches of Ben-Gurion University, the Open University, the Levinsky-Wingate Academic Center, and the Ono Academic College, combined with work in one of the city's hotels and housing at a nominal price. "This is a move that will encourage young people to work in hotels and study one of the dozens of courses we offer," says Lankri.