Agriculture: Sections
Agreement on Trade in Agricultural Products (including value added food products)
In 1996, Israel and the United States signed a five-year Agreement on Trade in Agricultural
Products (ATAP), in which Israel was allowed to protect a number of sensitive crops and livestock products with a combination of tariff-rate quotas and relatively high duties. In 2004, the agreement was extended until the end of 2008. Negotiations on the extended trade agreement began in 2008 but have not concluded. Both sides agreed that for the time being, until the new agreement is signed, the existing agreement will remain valid in its 2008 version.
Israel has also signed free trade agreements with Canada, EFTA, Jordan, Turkey, Mexico, and the European Union. All new EU member states were automatically included in the agreement with the EU. In May, 2008, Israel and the European Commission agreed to update their FTA on agricultural and processed food products. Under the proposed framework of the agreement, 95 percent of processed foods, imported and exported, will be exempted from levies and quotas.
Israel has also signed a free trade agreement with Mercosur countries (Argentina, Brazil, Paraguay and Uruguay), including an agreement on trade in agricultural products. The new FTA agreement has to be approved first, by the Israeli government and the four Mercosur member country governments, and when approved it is expected to come into effect in 2009.
Israel has a customs union with the Palestinian Authority. As a member of the World Trade Organization (WTO), Israel implemented the WTO Customs Valuation Agreement that requires legislation to eliminate non-tariff barriers.
Trade and the Market for U.S. Products and Services
Despite the local economic slowdown, first estimates by the Central Bureau of Statistics (CBS) for 2008 show that during the first 11 months of the year, agricultural and processed foods imports to Israel totaled $4.05 billion. This is 32.1% higher than the imports during the same period in previous year. Of total agricultural imports, $568.8 million (14.0 percent) were from the United States (13.8 percent in 2007) and $1.56 billion (38.0 percent) from the EU (40.6 percent in 2007).
Israeli food and agricultural exports in the first 11 months of 2008 totaled almost $2.0 billion, of which $204 million (10.1 percent) were to the United States and $1.26 billion to the EU (mainly fresh vegetables products).
In 2008 (11 first months), prepared food, beverages and tobacco imports rose by more than 27 percent compared to the same period in previous year (from $1.3 billion to $1.65 billion). Imports of those products from the EU increased by 15 percent to $863 million, while imports from the U.S. increased by almost 30 percent (from $138 million to $178 million). The increase in U.S. food imports is attributed mainly to the favorable exchange rate of the US dollar, compared to the Euro. Food imports from new sources are increasing steadily mainly from countries like Thailand, Turkey and Central and Eastern Europe (Poland, Hungary, Russia).
Consumer Buying and Eating Habits
The monthly household consumption expenditure in 2007 totaled $2,820 (3.5% up, compared to 2006), of which 16.9 percent ($477) was directed to food purchases. When buying food, Israelis are quality oriented and are ready to pay a premium for quality food products. The Israeli consumer is acquainted with American products and wants more available, but at competitive prices. Since the last decade, more consumers buy their products through supermarket chains, replacing the more traditional open-air markets and the small grocery stores. Kosher certification is not an obligatory requirement for importing food into Israel, except for meat (beef and poultry). However, non-kosher products have a much smaller market share as the large supermarket chains and hotels refuse to carry them. Approximately 2/3s of Israeli consumers buy kosher food products.
Opportunities and Challenges for U.S. Exporters to Israel
| Opportunities | Challenges |
|
The current exchange rate between the U.S. dollar and the euro continues to favor U.S. suppliers, as European products become more expensive. |
The shipping costs are high. Since July 2008, the local currency (New Israeli Shekel) has fallen by 22 percent against the U.S. dollar |
|
Rising demand for quality food products. |
Global and local economic slowdown. Financial insecurity is forcing consumers to become more pricesensitive. |
|
There is tremendous growth in the number of food stores (supermarkets, grocery stores, 24-hour convenience stores), and restaurants. |
The competition from Eastern Europe, Turkey, Former Soviet Union, South America and the Far East. Products from those areas are cheaper then products from the U.S. and EU. |
|
Israel is a net feed importer. It is a strong market for U.S. agricultural exports, such grains, oilseeds, dried fruits and prepared food products. |
Restricted food ingredients, for example non-kosher meat, poultry and pork. |
|
American products are known for their quality and reliability. |
Israel is increasingly adopting EU standards and requirements on imports. There is an increasing number of complaints from food importers regarding detained shipments at the ports. In some aspects the situation becomes impossible and worse than in the past. |
|
Israel has the potential to be a “bridge” to the Palestinian Authority with its rapidly growing population. |
U.S. suppliers’ interest in the Israeli market is still low. The security situation in Israel remains precarious. |
|
Agricultural trade agreement between the U.S. and Israel. The agreement offers the U.S. tariff rate quotas for several important products, and reduced duties for several others. |
Israeli buyers unfamiliar with U.S. suppliers and products. U.S. exporters lack knowledge of the Israeli market and are unaware of new opportunities. |
Consumer Taste and Preference
The food service industry is expanding and consumer habits are changing. Over the last few years, Israelis have begun to dine out more frequently and choose premium food when doing so.
Consumer malls and shopping centers are popular in Israel. Over 200 malls exist and others are planned. Many American specialty shops, chain stores, and franchises have their outlets in malls and shopping centers. The key to success is offering an increasing variety of new products and services to the consumer.
The institutional services, including the army, hospitals, hotels, restaurants, banquet halls and places of employment, account for 30 percent of the total market share (households and institutional). Over 50 percent of the total food supply directed at non-institutional consumers is sold through supermarkets and retail chains.
Best High Value Products Prospects
• High quality beef meat (if BSE ban is lifted)
• Wine and beer
• Healthy and Organic food
• Premium Ice cream
• Fish and seafood products
• Baby food
• Frozen bagels
• Frozen vegetables
• Pet food
• Dried fruits & nuts
• Sauces and condiments
• Intermediate products for further processing (whip toppings, corn and potato starch, milk powder, products for the baking industry)
Automotive Aftermarket: Sections
Overview
|
($ Millions) |
2006 |
2007 |
2008 (estimated) |
|
Total Market Size |
130 |
180 |
206 |
|
Total Local Production |
27 |
34 | 56 |
|
Total Exports |
194 |
225 |
270 |
|
Total Imports |
297 |
371 |
420 |
|
Imports from the U.S. |
14 |
23 |
30 |
The automotive aftermarket sector in Israel consists of original equipment manufacturer (OEM) parts and their substitutes. There are 2.3 million cars on Israeli roads of which 3.8% are made in the United States and the balance from Europe (46.6%) and Asia (49.6%) - Japan 38.7% and South Korea 10.9%. In 2007, total imports of aftermarket products amounted to $371 million, of which $23 million was from the U.S., Germany ($63 million), Japan ($45 million), France ($18 million), Italy ($23 million), China ($55 million) and the balance from Korea and Taiwan. There are presently between 600–700 importers of aftermarket products and around 20 local manufacturers of aftermarket parts and accessories in Israel.
About six years ago new legislation was passed by the Anti-Trust Authority to stop car importers from forcing garages and car owners to use only OEM parts. American spare parts are recognized for their high quality although over the years Israel has progressively adopted European standards as the bulk of cars being imported are from Europe and the Far East. The Government of Israel has recently appointed an inter-ministerial committee to review the Israeli car market in general. One of the committee’s main objectives is to open up the Israeli car market to competition and to eventually reduce taxes on cars from 90% to 65%. Taxes in Israel are among the highest in the world, which industry sources blame as the main factor preventing the car market from reaching its potential.
Discounting taxes, car prices in Israel were among the lowest in the world, up to 40% less than in Europe.
Best Prospects/Services
• Car security and anti-theft devices: anti-theft electronic systems, locking devices,
• Car body: bumpers, radiator grills, hood and trunk lids, wings, front and rear lamps (i.e. the parts
• Service parts: disc break pads, shock absorbers, front suspension parts, filters for oil and
• Replacement service parts: tires, fan belts, water hoses, water pumps, brake components,
• Vehicle accessories: car care products, polish, wax, upholstery spray
• Water-coolants (Glycol) for radiators
• Electronic accessories: TV screens for the rear seats, GPS systems, sound systems etc.
• Universal lubricants: well-known brand names of high-grade oils, lubricating, glycol, wax. The
Opportunities
Israeli importers are on the lookout for quality products at competitive prices, usually in that order.
Resources
Educational Services: Sections
Overview
The number of students pursuing degrees rose by 4% for the 2007-2008 academic year, reaching 263,584. The growth rate has slowed down to only 4% a year this decade, compared to 8% a year in the 1990s, when higher education became more accessible to the Israeli public. There are 65 institutions of higher learning in Israel, and 79.6% of students are studying for a bachelor's degree.
Post-graduate students taking masters’ degrees numbered 43,463, or 16.4% of the student body. PhD students numbered 10,300, or 4.0% of the student body. The total excludes the 44,327 students studying at the Open University and the 1,210 non-degree diploma students. The Councilaccredits all new institutions and programs and authorizes them to award academic degrees. The growing number of entering college students has changed the profile of Israeli higher education. The growth in the student population has led to the establishment of new colleges to meet the demand of qualified students. These colleges are accredited and must offer the same quality of education as the BAs taught in the local universities. Undergraduate students are entering these institutions in ever-increasing numbers (54.8% of all undergraduate students in 2007/8), thereby allowing the eight universities to focus more on graduate and research level studies. Today, institutions of higher education in Israel include 8 universities, 8 regional colleges associated with universities, 23 other regional colleges, 22 teacher training colleges, 12 institutions that offer a diploma recognized by the Ministry of Education, 11 art schools, and 59 technological colleges. In 2008, revenues of the top 20 local universities and community colleges exceeded $2 billion.
Best Prospects/Services
Israeli undergraduate students typically apply for law, psychology, medicine, and veterinary medicine, engineering-and fields that are not offered as BAs in Israel such as hotel administration, advertising, art and therapy. Short-term or non-degree study includes fields such as English language, culinary arts, sound engineering, jazz or acting, architecture and institutions offering sports scholarships. Popular majors include: law, clinical psychology, industrial/organizational psychology, business, culinary arts, film, music, video editing, advertising, East Asian studies, international relations, computer sciences, architecture, social work, mass communications, remed, and life sciences. Increasingly popular is ecology, environmental sciences, make up artistry, image consulting, drug and substance abuse counseling, and various expressive therapies.
Opportunities
Today, attention in Israel has turned to secondary study and relevant accreditation, be it degree, diploma or certificate. Israelis are looking to broaden their horizons both professionally and personally and are investigating opportunities to study overseas. Best prospects for U.S. educational institutions are to offer a degree integrated with practical work experience. According to 2008 statistics, a total of 25,000 Israelis requested information and showed interest in study programs in the States. In 2007/8 there were 3,004 Israeli students studying in the United States. (Breakdown: 1,031 under-graduate, 1,511 graduate and 462 other).
Resources
United States-Israel Educational Foundation (Fulbright)
Electricity
Overview
Israel Electric Corporation (IEC) The state-owned IEC is Israel’s only integrated electric utility with full ownership and control over the transmission and distribution networks and 98 percent of the generation capacity. The company owns and operates 17 power stations sites (including 5 major thermal power stations) with an aggregate installed generating capacity of 11,323 MW. For the past decade, demand for electricity has grown at an average annual rate of 5.5 percent. Israel’s electricity network is not connected to those of the neighboring countries.
Independent Power Producers (IPP) The Electricity Law provides the framework for the increase of IPP’s from 0.6% to 20% of Israel’s installed generating capacity. The infrastructure for the supply and distribution of natural gas to its industry is in an advanced stage of development. An offshore pipeline along the coast has been completed and an overland transportation system is being built. IEC is in the process of converting its oil-driven power stations to natural gas.
Natural Gas Transmission The Israel Natural Gas Pipeline Company continues to develop a national gas transmission network. Israel procures natural gas from Egypt and from an Israeli offshore site. With the recent discovery of a large offshore natural gas well, a new underwater pipeline will need to be laid to the shore. MNI may continue to develop plans with potential overseas suppliers and foreign governments for the supply of natural gas and the building of a pipeline corridor from Turkey to Israel along the Mediterranean coast.
Best Prospects/Services
Electrical Power Generation, Transmission and Distribution Equipment
Opportunities
IEC, to meet increased electricity demand, has made substantial investments in the construction of new generation facilities and for expansion and improvements to its transmission and distribution systems. To meet projected future electricity demand, the Company's capital investment program provides for the addition of 1,847 MW of installed capacity by the end of 2011, by adding 6 combined cycle plants as well as wind turbines providing 150MW. The implementation of these plans will require investments of at least $1.2-1.3 billion annually. IEC’s expansion plans have been delayed due to obstacles in the government’s plans to privatize/restructure the company.
The Electricity Authority, over the past couple of years, has issued several licenses for IPPs including to Dorad for an 800MW power station and for combined cycle plants at Nesher Cement Works, Dead Sea Works, Hadera Paper Mills, Dalia Power, and the Via Maris desalination plant. In addition, several existing industrial combined cycle stations will be converted to natural gas. The Ministry of National Infrastructures (MNI) is cooperating with the industry in removing the remaining regulatory obstacles to the development of the IPP sector. The recent off-shore natural gas discovery will remove some crucial obstacles to the development of the IPP sector. In MNI has issued two tenders for two solar energy plants in the Negev with a total capacity of 250MW. Israel remains a good market for U.S. suppliers of equipment and services to the energy sector. With a favorable dollar exchange rate, U.S. equipment suppliers currently enjoy a price advantage over EU-based manufacturers.
IPP’s, in particular cogeneration plants; conversion of existing cogen plants to natural gas. Renewable energy power stations, i.e. a solar energy plants and wind driven turbine generators.
Resources
Ministry of National Infrastructures
Security
Overview
Israel is a well-developed and sophisticated market for homeland security equipment and services. Israel’s security-awareness and high level of preparedness are the driving forces for the development of the country’s cutting edge security industry. After 9/11, this sector became one of Israel’s fastest growing export industries. Israel has over 400 exporters of security technologies and services. Many of these companies are integrators and service providers. This sector continues to experience fast growth. In 2007, the turnover of Israel’s security industries was over $4.5 billion, with $1.2 billion in exports, a 20% increase over 2006. In 2008 the sector saw similar growth rates. Final figures are not yet available.
U.S. companies should be aware of the U.S. requirement for export controls in particular in cases in which Israeli companies re-export the U.S. equipment after it is integrated into an Israeli system.
Best Prospects/Services
CCTV, X-ray systems and screening systems using alternative technologies, non-lethal weapons, sensors, biometric solutions
Opportunities
Israel is an attractive market for U.S. manufacturers of high-end equipment and of components that can be integrated into Israeli systems. Israeli manufacturers are important end-users of imported security equipment and components that are integrated into locally produced for-export security systems. In addition, many of the homeland security systems are sold to the Israel Ministry of Defense. These procurements are made with Foreign Military Funding (FMF), giving an advantage to U.S. manufacturers.
The import market, estimated at $600 million has a 70% U.S. market share. U.S. exporters dominate the market for sophisticated equipment used in homeland security applications. U.S. security equipment, which enjoys an excellent reputation in Israel due to its high reliability, is often used for sensitive applications, by high-security industries and for key infrastructures and installations. The market offers good opportunities for U.S. exporters of high quality and sophisticated detection and screening systems, cctv, sensors, biometric solutions, x-ray systems, non-lethal weapons, etc.
Intelligent Transportation
Overview
Intelligent Transport Systems (ITS) is a broad-based term that describes a wide range of communication and computing technologies used to improve various transportation systems. Innovation in ITS is moving Israel towards an all-encompassing computer coordinated transportation system that will improve every source of transportation, from trains to roads, buses and even bike paths. Not only do these improvements make transportation more convenient and efficient, but also allow increased safety. Improvements in traffic management, driver assistance technologies, navigation aides, freight management dispatch systems, information for multi-modal transport users, rescue systems and environmental management provide users with significant reductions in total costs and travel time and increased safety.
Total planned transportation infrastructure spending in Israel is planned to reach $10 billion in the medium term (2006-2010). Highway spending alone could reach approximately $6.4 billion over the next five years. The two key products that Israel is expected to import as part of this spending surge include traffic safety devices and intelligent transportation systems (ITS). ITS spending by the Israel National Roads Company (INRC) may reach as high as $46.5 million.
The U.S. Commercial Service is organizing a program on U.S. Standards and ITS, in March 2009. U.S. companies interested in how standards affects this industry should contact alan.wielunski@mail.doc.gov .
Best Prospects/Services
Roughly forty percent (40%) of the ITS budget is allocated for procuring hardware components such as; cameras, electronic signage and detectors. This group of products alone is expected to consume $18.6 million in the next five years.
Opportunities
U.S. manufacturers of ITS products and services are encouraged to take advantage of the opportunities in the Israeli market.
Resources
Israel National Roads Company ; Ministry of Transport & Safety
Medical Equipment
Overview
Sales of U.S. medical instruments, medical imaging equipment, orthopedic appliances and surgical dressings to Israeli hospitals amounted to $164 million in 2007 (Data Table 1). A favorable Shekel-Dollar exchange rate increased the demand for U.S. made medical devices during 2008. Israel’s medical equipment market represents good opportunities for American manufacturers who already account for 35% of medical imports.
Data Table 1: Breakdown of Imports by HS Code, 2006-2007 ($ millions)
|
HS Code |
Total Imports |
Imports from the United States |
Total Imports |
Imports from the United States |
Total Imports |
Imports from the United States |
|
9018 - Medical Instruments |
260.5 |
79 |
287 |
96 |
+10% |
+21.5% |
|
9021-Orthopedic Appliances |
95.4 |
21 |
112 |
23 |
+17.4% |
+9.5% |
| 9022-Medical Imaging Equipment | 92 |
69 |
60.5 |
40.3 |
-25% |
-41% |
|
3005-Medical/Surgical Dressings |
13.6 |
3.2 |
16 |
4.7 |
+17.6% |
+47% |
|
Total |
461.5 |
172.2 |
475.5 |
164 |
+3% |
- 4.7% |
(Source: Israel Central Bureau of Statistics Foreign Trade Database)
Best Prospects/Services
Israeli hospitals are well-equipped but overburdened and much of the equipment needs to be refreshed. While there is no government plan in place for a massive investment in new devices in 2009, hospitals are likely to replace equipment on an ad-hoc basis and to keep up with the latest, most advanced technologies.
To generate extra income, Israeli hospitals provide private care in addition to universal healthcare services. A well-developed private sector dominates the areas of dental care, eye laser surgery and plastic/aesthetic surgery. Medical tourism is also a growing niche service that helps generate additional income. Both private healthcare and medical tourism are likely to prompt the need and provide the funds for upgrading existing systems and purchasing new equipment. This represents a good export potential to U.S. manufacturers of advanced medical technologies, instruments and disposables in the following categories: Imaging instruments, Cardiology equipment, Equipment and supplies for plastic surgery, Dental instruments, Equipment and technologies for pain management and physiotherapy, Ozone & oxygen therapy, OR equipment & single use products, Point of care diagnostic kits, Wound management technologies.
In 2008 the Israeli government issued a preliminary tender for the construction and management of a brand new 300-bed general hospital in the city of Ashdod. The tender is likely to enter a final stage during 2009.
Opportunities
Technology & Research Cooperation
Israeli medical companies are ranked third worldwide in the number of granted patents per capita, rendering the medical sector highly active and innovative. Opportunities for U.S. companies exist in the area of research, clinical trials and academic and professional exchanges. Israel’s medical device companies develop implantable and disposable therapeutic devices for cardiovascular and peripheral vascular disease, oncology, neurodegenerative diseases and other age related diseases such as ophthalmic and orthopedic. Other industry areas include diagnostic, imaging and monitoring devices. A smaller number of companies focus on endocrinology, wound management and respiratory disease. (Source: Israel Life Science Industry)
The U.S. Commercial Service in the American Embassy in Israel helps American exporters enter the market through partner search and trade promotion programs. Please visit http://www.BuyUSA.gov/israel or contact: yael.torres@mail.doc.gov
Resources
Israel Central Bureau of Statistics
Telecommunications
Overview
|
2006 |
2007 |
2008 (estimate) |
|
|
Total Market Size |
1,683 |
1,796 | 1,841 |
|
Total Local Production |
3,418 |
3,600 | 3,690 |
|
Total Exports |
3,034 |
3,155 | 3,234 |
|
Total Imports |
1,299 |
1,351 | 1,385 |
|
Imports from the U.S. |
353 |
330 | 322 |
Israel’s telecommunications market is currently estimated at $7 billion. In an era of fast communications and accessible information, the telecommunications market has been a major driving force in the Israeli economy. According to the Ministry of Communications the telecom market grew by 5.4% in 2007 and by 2.6% in 2008. Market analysts estimate that the telecom market will be affected by the global slowdown and will only increase by 1.7% in 2009.
The year 2007 included many developments in the telecommunications market. According to a local analyst, the future lies in “Triple Play convergence”, i.e. voice, data video, all on a single network. Mergers and acquisitions in the telecommunications market, and consolidation of different companies offering cellular, Internet and fixed services are already in progress. The end result will be three major telecommunication groups offering everything under one umbrella.
The Israeli telecom market consists of four domestic cellular operators, six international service providers, one cable television provider as well as one satellite television provider, three leading Internet service providers and two fixed domestic operators with universal service obligation.
Mobile services are the leading market segment that constitutes 50% of the revenue, followed by fixed services, cable TV, international long distance calls and Internet. There are 3.1 million direct exchange lines, 7.7 million cellular telephone subscribers, 1.4 million multi-channel TV subscribers, and over 2 million households have an Internet connection, mainly broadband.
Many Israeli companies are active in developing and manufacturing telecommunications and networking equipment. Case in point, and the original cell phone technology was largely developed by Motorola Israel. Still, Israel imports over $1 billion of telecommunications equipment each year, of which $300 million is imported from the United States. In addition, over $100 million in telecom services are imported from the United States.
The substantial changes that have taken place in Israel’s communications market over recent years are due, in part, to a basic change in policy on the part of the Ministry of Communications, which serves as the primary sector regulator. The Ministry of Communications’ objectives for the coming year, include: Expanding competition in the fixed market, by licensing new competitors without universal service obligation; preparing a policy on VOIP communications (Voice Over Internet Protocol) based on VOB (Voice over Broadband) Technology and on a recently-published consultation with the public; promoting the Wimax technology and developing a policy on Wimax; promoting the deployment of advanced cellular services and promoting the competition in the cellular market- MVNO (Mobile Virtual Network Operator) concept is being discussed as one possibility; ensuring the existence of original Hebrew productions.
Best Prospects/Services
Israel has one of the highest household broadband penetration rates in the world, building on even higher Internet penetration. Three major Internet service providers serve more than four million users, over 60% households and 80% businesses. Israel’s very high broadband penetration rate provides great potential for triple play and digital media market developments. Both Bezeq, with its satellite TV subsidiary YES and HOT, the merged operating entity of the three Israeli cable TV companies, have the potential to easily deliver triple play services as each possesses both content and delivery mechanisms. IPTV is a hot area today, but the service is still under development.
Another area of development is the Fixed Mobile Convergence (FMC) market. A market survey conducted by BBDO Consulting shows that over 65% of fixed and mobile operators will have implemented FMC services into their products over the next three years. There are a number of Israeli companies offering FMC solutions allowing for Dual-Mode Handset service. Bezeq’s (the Israeli ILEC) long-term goal is to merge its activities with those of its subsidiaries in order to become one group that provides cellular, wireline (local and international calls), IPTV, and Internet services, over converged fixed-mobile infrastructure. However for now, regulations in Israel require structural separation between service providers. This means a complete separation between cellular, international calls and local calls operators; i.e., separate infrastructures, subscriber base and management.
The cellular market segment is the main growth engine behind the Israeli telecommunications market. All four operators in Israel provide digital technology countrywide coverage and modern 3G(third generation) services. Pelephone uses CDMA2000 technology. The second operator, Cellcom, uses the American IS-136 TDMA, European DCS 1800 and UMTS. Orange (Partner Communications), the third operator, uses GSM technology DCS 1800 and UMTS. The last licensed cellular operator is MIRS, which uses iDEN ESMR technology. The penetration rate of mobile phone subscription exceeds 100% (over 7.7 million mobile subscribers).
The cellular market continues to search for new and innovative applications such as value added services for its customers. Israel is a highly urbanized, technologically-literate society. Israelis are used to having world-leading technology in many fields, and mobile phones are no exception. All mobile operators make a good profit from the high volume of traffic generated. According to marketplayers, voice is not what makes the cellular market interesting. Israel is a good market for operators to test new applications. Israel is technologically oriented, making launching new services easier. With mobile penetration reaching 107 percent, Israel is a market of users who know what they want and how to use what they get. There is a continual demand for technology that is more sophisticated as Israelis update their handsets regularly, at least once a year. The "experience rate" for new hardware and applications is high. Operators are aware of this and strive to accommodate their subscribers. Many Israeli companies are active in developing and manufacturing telecommunications and networking equipment.
Opportunities
Opportunities are in the IP Networks – Voice, Video, Data and Multimedia, FMC, IPTV, Wi-Fi, WiMAX and VOB. As the Israeli telecoms industry continues to expand and increase in revenue and with the introduction of new technologies, the market will continue to offer many opportunities for U.S. exporters.
Resources
http://www.moc.gov.il/new/english/index.html, http://www.iaei.org.il/
Travel & Tourism
Overview
Israel’s $1 billion travel-to-the-U.S. market holds enormous potential for the U.S. travel industry. In order to increase their share in the market, U.S. travel entities are encouraged to promote their products and services directly to consumers.
2007 witnessed a record of 3.4 million air departures by Israelis according to the Israel Central Bureau of Statistics. Israeli travelers continued to rank the United States as their preferred travel destination. The U.S. Department of Commerce Office of Tourism Industries recorded a 10% growth in the number of Israeli travelers to the United States between 2006-2007 with over 313,000 entries. The majority of Israelis who travel to the United States are business travelers, though considerable numbers of individuals, tour groups and families also visit the United States. The average expense per person per day in the United States is approximately $200 including accommodations, meals, and shopping (not including airfare). Industry experts report over $1 billion in expenditure per year by Israelis within the United States on travel-related services, not including airfare.
El Al Israel Airlines, Continental Airlines and Delta Airlines operate over 35 weekly direct flights from Tel Aviv to New York, Atlanta and Los Angeles. Delta Airlines resumed flights to Israel in 2006, adding 100,000 seats annually on direct flights between Tel Aviv and Atlanta. Israel’s charter airline company, Israir, operates a low fare service to New York. Most European airlines offer very competitive prices and routes to a large selection of US destinations with a stop in Europe.
| 2005 | 2006 | 2007 | |
|
Total outbound departures of Israelis by air |
2,980,000 |
3,100,000 |
3,400,000 |
|
Total Departures by Israelis to the U.S. |
284,000 |
289,000 |
313,077 |
Source: Israel Central Bureau of Statistics and the Office of Travel & Tourism Industries, U.S. Dept. of Commerce
Best Prospects/Services
Over 500 travel agents and about 20 tour operators work in the Israeli outbound travel market. This market is fast-paced and extremely competitive. Operators and airlines advertise special packages and seasonal deals on an almost daily basis, especially around the July-August summer vacation and the Jewish holidays in September, October and April. Tour operators specialize in market
Opportunities
The Commercial Service is recruiting an Israeli Buyer and Media delegation to Pow Wow, the U.S. Travel Industry Association (TIA) travel event, May 16-20, 2009 in Miami, FL. During the 3-day event, Israeli buyers will hold 1,000 meetings with their U.S. counterparts. In addition, representatives from the Israeli press will also be available for meetings. For information and a delegation profile please contact Commercial Specialist Mrs. Yael Torres at: yael.torres@mail.doc.gov
You can also contact us for customized, individualized or standard information on the Israeli travel market, responding with specific information relevant to your products or services. We can provide answers regarding the overall marketability of a product or service, market size and trends, customary distribution and promotion practices, market entry requirements and potential agents, distributors, or strategic partners.
Resources
U.S. Dept. of Commerce Office of Travel & Tourism Industries
Israel Central Bureau of Statistics