8 July 2008

NO MORE VISAS!
FROM 1 OCTOBER TOURISTS FROM RUSSIA
NO LONGER NEED A VISA TO ENTER ISRAEL

Ministry of Tourism
www.tourism.gov.il

Director-General of the Ministry of Tourism Shaul Tzemach: "The arrival of
hundreds of thousands more tourists each year to Israel will create
thousands of new jobs and inject hundreds of millions of shekels into the
Israel economy."

Beginning in October, Russian tourists visiting Israel no longer need a
tourist visa to enter the country. The new policy, approved recently by the
Knesset Interior Committee, officially approved the recently signed mutual
visa exemption agreement between Israel and Russia. The initiative was led
by former Tourism Minister Yitzchak Aharanovitch within the framework of a
special government committee on the matter.

Given the increased traffic from Russia during the past few months and the
expectations and interest of large tourism wholesalers as a result of the
new agreement, the number of tourists from Russia could double or even
triple in the coming years.

Some 193,000 Russian tourists visited Israel in 2007 - a 163% increase
compared to 2006. Between January - May 2008, about 128,000 tourists entered
Israel from Russia - a 135% increase over the corresponding period last
year. At this growth pace, an estimated 300,000 tourists are expected to
visit Israel from Russia in 2008.

Director-General of the Ministry of Tourism Shaul Tzemach: "The arrival of
hundreds of thousands more tourists each year to Israel will create
thousands of new jobs and inject hundreds of millions of shekels into the
Israel economy." This important achievement is of national significance and
is in line with the government's target to reduce gaps and unemployment."

Since 2007, Russia has become the second-largest source of tourism to Israel
and is one of the countries with the greatest potential for tourism growth.
With an average annual growth rate in the Russian economy of 6.7%, there is
a sizeable group among the 140 million population who are interested in -
and able to afford - a high quality vacation. The relatively short distance
between Israel and Russia, the ideal climate, the unique sites and the large
Russian-speaking population serve to encourage tourism from Russia to
Israel, where the Russian tourist can receive excellent service in his own
language.

To date, many Russian tourists would come to Israel for one day but now,
with the abolition of the visa requirement, the Ministry of Tourism expects
that many will lengthen their stay in Israel. In addition, competition is
expected with neighboring countries which also have no visa requirements,
with the focus now on quality and not the relative ease of arrival.