The tourism industry is outraged that business loan guarantees are 15%, with the world average 80%

• Tel Aviv hotels // Photo: Yehoshua Yosef

The tourism and aviation industries were the first to absorb the corona blow and were the last to be released from the restrictions.

According to industry leaders, if they wait for the government, they will never get out of the crisis, so they decided to take matters into their own hands. Airlines have already started taking out first flights in the world, and in Israel hotels are opening up. According to them, the ambition at this point is not to make profits, but to show lenders a horizon for repayment of loans and raise funds to start rolling the business. But here's exactly the problem - Israel is at the bottom of the list of state guarantees for business.

"It is difficult to understand the policy that in Israel the volume of state guarantees is only 15%. In the UK, guarantees are 60% and there are also complains about the low guarantees, which average 80% in developed countries."

These are industries with very expensive assets. For example, the Nakash brothers bought Arkia for billions of shekels and hotel chains also hold billions of assets, so they wonder "will we not repay a loan of $ 100 million and risk billions of assets? What can we demand from market investors if the state does not believe it? Shall we get out of the crisis? "

According to Leon Avigad, co-founder and co-owner of the Brown Hotel Collection, "We chose to operate two hotels in Tel Aviv, Brown Beach House and Polyhouse, and they host mostly couples who do not give up romantic holidays.

"In addition, during Corona we built future vacation packages for both couples and families that include the entire luxury boutique experience we offer at affordable prices with flexible cancellation policies and lots of cool content, and sold like hot cakes. There are orders in the pipeline. We feel the awakening and see a beginning of light At the end of the tunnel. "

Government ministries are aware of the matter and acknowledge that the business lending program is still not taking off. Banks are in no hurry to grant loans at the current guarantee level.