As Waldorf Jerusalem opens, challenges of hotel investment in Israel remain
Calev Ben-David
Photo Credit: Rendering of Waldorf Jerusalem. Waldorf Astoria
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In downtown Jerusalem, a new hotel managed by Hilton International under its premiere Waldorf Astoria brand is finishing construction just months after air raid sirens warned residents of rocket attacks from Gaza.
The $150 million Waldorf Astoria Jerusalem, scheduled to open in summer 2013, is among several new hotel investments gambling that Israel’s potential as a prime tourist destination won’t be damaged in the coming years by more outbursts of political unrest and violence. Israeli Prime Minister Benjamin Netanyahu has called 2013 a year of decision over Iran’s nuclear program, and hasn’t ruled out military action to prevent it developing atomic weapons.
“We know the tourism market in Israel, especially in Jerusalem, is very cyclical, is very sensitive to the security situation,” said Dov Meyer, chief executive officer of Toronto- based Terra Firma Capital Corp. and a partner in the Waldorf project. “Developing in Israel is a long-term project, you don’t make decisions on a dime, and when the market is good here it’s very, very good.”
Tourism is a key Israeli industry, contributing 7 percent to annual gross domestic product, and directly employing about 80,000 workers, according to the Tourism Minist
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