The No-Shows at Israel's Party

By Nancy R. Gibbs

This was to be the best summer ever. Israel was throwing a lavish 40th- birthday party, and the Ministry of Tourism expected the crowds to break all records. Foreign visitors would flock to the festivals or the spectacular $12 million staging of Verdi's Nabucco in the 5,000-seat Sultan's Pool. They would sample the rich history of Jerusalem, the flashing, clear waters of Eilat, the archaeological drama of Masada. Bracing for a flood of guests, Hyatt International unveiled a $60 million, 500-room hotel in Jerusalem. Airlines scheduled extra flights, and car-rental agencies planned to plump up their fleets. Israeli tourist officials, anticipating 1.5 million visitors and record revenues of more than $2 billion, launched an ad campaign saying "You've thought about it long enough . . . Come visit us in Israel."

But what the officials could not have foreseen was the chilling effect of the civil unrest that has exploded in Israel since December. Rioting Palestinians in the occupied territories have been stoning Israeli soldiers, and the soldiers have been fighting back -- with much of the action flashing on television screens around the world. Although the violence has been largely limited to the West Bank and Gaza, many potential tourists see a country clouded by tear gas and moral ambiguities and are choosing to stay away. Tourism since April is 24% lower than in the same quarter last year. Hundreds of charter flights have been scrubbed and the Nabucco extravaganza canceled; hotels stand half empty. If the trend continues, Israel could lose $300 million this year of the $1.5 billion it earns from tourism.

Roughly 25% of Israel's tourists come from the U.S., and they have been the first to change their plans. Tourism from the U.S. declined 28% in June alone. Most of the cancellations, not surprisingly, come from would-be first-time visitors rather than those who visit regularly and have family and friends in Israel. Many Europeans, meanwhile, seem undaunted by reports of the riots. The number of visitors from Japan, Germany, Scandinavia and Switzerland has actually increased this year, although that from France has decreased 20%.

Tourism officials blame the media for their coverage of the conflict. Argues Minister of Tourism Avraham Sharir: "The bad publicity we are receiving is scaring people from coming here, especially from North America." Sharir says he has lodged a complaint with the U.S. State Department about its travel advisory on the West Bank and Gaza, warning U.S. citizens "to avoid travel to these areas until further notice."

Hardest hit by the cancellations is Jerusalem, where stores, hotels and restaurants are desperate for some well-heeled visitors. Along the Cardo, a rebuilt Roman boulevard in the Old City, ten of the 18 shops have closed; others have had to slash prices to attract customers. "My sales are off 80% because I sell mainly to Americans," says Eli Heller, manager of a leather- apparel store. Grumbles Ruth Elkayam, a cashier at Tayelet restaurant: "It doesn't pay to open up in the morning. Our business is off by 90%, and instead of 40 workers we have 17." At the new Hyatt Regency, the management closed several floors and dispatched the general manager to the U.S. to drum up business. And, notes Executive Assistant Manager Moshe Sand, "we no longer advertise that we are a stone's throw away from the holy sites."

American tourists who defy the alarms are sometimes viewed at home as mad adventurers. "When I told my friends we were going to Israel, they said, 'What! Are you crazy?' " says Florida Dentist Selden Schwartzberg. "They're the ones who are crazy -- for staying at home." To date there have been no reports of injuries to tourists, and the Schwartzbergs are confident that their guide will keep them away from the trouble spots. "I've seen more crime in Hollywood, Fla., than I have seen in all of Israel," says Maureen. "American Jews should be ashamed to stay away now."

As the Schwartzbergs' comments suggest, Israelis make special claims on travelers' loyalties. American Jews who cancel trips can find themselves the object of sharp criticism. "American Jews have a responsibility to disregard the reports and come here," says Harry Wall, director of the Anti-Defamation League office in Israel. "Anyone who stays away is succumbing to Arab pressure."

Government officials and tourism industry leaders are scrambling to counter the negative image and limit the loss of revenues. Some hotels offer package plans with twelve months to pay. One five-star Eilat hotel provides a three- day stay with breakfast and bus transportation from anywhere in the country for $151 a person.

The efforts could succeed in attracting visitors in time for the fall and winter holidays. The Tourism Ministry is working with New York City's Grey Entertainment & Media company to launch a new campaign next month. The theme: "See Israel. See for yourself." If the demonstrations continue to taper off and Israel is replaced in the news by other world events, there still seems to be a chance that more tourists will do just that.

With reporting by Marlin Levin/Jerusalem