WEST BANK — The Israeli government approved the allocation of approximately NIS 27 million for the development and construction of hotels in the West Bank on July 5, 2026. The initiative's stated goal is to transform the region from a "day-trip destination" into one that accommodates overnight stays.

An additional NIS 20 million from the Ministry of Tourism's development budget was approved for grants to assist in establishing, converting, and expanding hotels in the area. The government also expects to allocate NIS 7 million from the Tourism Ministry's ongoing budget, distributed equally between 2026 and 2030.

Tourism Minister Haim Katz said in an interview regarding the program, "The approved program will enable the realization of the enormous tourism potential in Judea and Samaria." He added, "For the first time, we will lead a comprehensive initiative combining planning, infrastructure development, the creation of land reserves for hotels, and a dedicated track to encourage hotel construction." Katz further stated, "In doing so, we will remove barriers in the sector, create certainty for investors, and lay the groundwork that will increase the supply of accommodation rooms, attract tourists, and strengthen the local economy."

The Ministry of Tourism identified a lack of available planning reserves for hotels as a primary obstacle to tourism industry development in the West Bank. In response, the Ministry intends to promote statutory planning for hotel development and will take steps to enable the realization of development rights and the marketing of land plots, following a mapping study.

Grants up to 28% of the approved investment plan will be awarded through a committee appointed by the director-general of the Tourism Ministry. According to the Ministry, approximately NIS 115 million has been invested in tourism infrastructure in the West Bank over the past decade. This compares to more than NIS 2 billion invested in tourism infrastructure in other parts of the country during the same period.

Under the 1990s Oslo Accords between Israel and the Palestinian Authority, the West Bank is divided into Areas A, B, and C. Area C is under full Israeli control, where roughly 500,000 Israeli settlers primarily reside. Most settlements in the West Bank are considered legal under Israeli law and were built on state land through government-approved decisions.