Jerusalem is a popular tourist destination for people from around the world and the main attraction for tourists to Israel. Among its many visitors are Jewish, Christian, and Muslim pilgrims, backpackers, vacationers, and the participants of numerous international conferences. Tourists can take advantage of a beautiful mountain city with numerous religious and historical sites of interest and a lively nightlife.

According to the Ministry of Tourism, in 1996, 2.1 million tourists visited Israel of these, 71% visited Jerusalem.

Hotels play an important role in the city. Altogether, there are 65 hotels that are either licensed or in the process of being licensed (34 in West Jerusalem and 31 in East Jerusalem). The total number of available hotel rooms is 8,046.

In 1996, Jerusalem's hotels hosted 970,000 guests, of them, approximately 720 thousand were tourists. This is an increase of 12.7% in the number of guests and 11% in the number of tourists as compared to 1992. However, in contrast to 1995, there was a decrease of 8% in the number of guests and 11% in the number of tourists.

In the first six months of 1997, there was a decrease of some 10% in the number of guests and some 19% in the number of tourists staying at tourist hotels in Jerusalem, as compared to the same period in 1996 (not included in the figures below).

In addition, there are a large number of rooms in small hotels, Christian hostels, and youth hostels in both East and West Jerusalem. These serve popular tourism, which arrives in Jerusalem in large numbers (but are not included in the aforementioned data).

Approximately 38% of all tourists come from the Americas, mainly North and Central America, and 43% come from Europe. The remainder is from other countries.

In 1996 the total number of nights spent by guests in Jerusalem hotels (most stay 3.6 nights) reached 3 million, including 2.6 million tourist nights. This shows an increase of 3.9% since 1992 and of 3.6% by tourists alone. Over 80% of all guest and tourists stay in hotels in West Jerusalem.

In 1996, these hotels employed 6,151 employees, of which 5,132 were employed by hotels in West Jerusalem and 1,019 were employed by hotels in East Jerusalem. The average monthly wage of hotel employees in Jerusalem is NIS 3,260, significantly lower than that of Tel Aviv (NIS 3,968) and the national average (NIS 3,581).

The revenue from tourist hotels (registered) in Jerusalem in 1994 was NIS 595,632. In 1995 the revenues from tourist hotels and hotels that have yet to be recognised (A) came to NIS 750,730 and to NIS 760,888 in 1996. The revenues of Jerusalem hotels recommended to tourists comprise some 20% of all such revenues in Israel. From 1992 to 1996 hotel revenues in Jerusalem increased by 70%.

Table 11 : Guests and Overnight Stays in Jerusalem and Israel, 1996

Source: Tourism and Hotel Services Statistics Quarterly, Vol. 25, No.3, Central Bureau of Statistics and the Ministry of Tourism, October 1997.

Jerusalem is also Israel's most important center for international conferences; approximately 50% of all such conferences in Israel are held in Jerusalem. In 1995 some 37,000 people (76% of all conference participants in Israel) took part in these conferences.

The establishment and operation of the International Congress Center have had a considerable effect on the ever growing number of international conferences held in Jerusalem. According to international statistics, in 1996 Jerusalem was ranked in fourth place among all cities in the world in which international conferences were held.

The number of tourists to Israel has risen dramatically in the past few years and is expected to grow even more in the coming years. Two key events that are expected to draw large numbers of tourists to Israel and Jerusalem include the 50th anniversary celebrations of Israel's independence (1998) and the year 2000 and the beginning of the new millennium

To accommodate these tourists, the Joint Committee of the Ministry of Tourism, the Municipality of Jerusalem and the Jerusalem Development Authority set as a goal the addition of 10,000 hotel rooms in the city by the year 2000, in both existing and in new hotels. To date, 30 sites have been located where more than 5,000 rooms can be added in a relatively short period.

The Committee has also emphasised the development of tourist projects in both East and West Jerusalem and the establishment of many new tourist information centers. Among the projects now underway or in advanced planning stages are:

- The revitalization of the city centre;

- The Mount of Olives;

- The Valley of the Kings;

- The Old City;

- The main business district of East Jerusalem;

- Me'ah Shearim

- Ein Karem