Despite having one of the lowest unemployment rates in Israel, the city of Eilat, whose economy heavily relies on tourism, is grappling with a persistent labor shortage in the sector. In response, a comprehensive action plan is being developed through collaboration between the municipality, the Employment Service, and the Israel Hotel Association to attract and retain workers.

Eilat has shown a consistent and impressive recovery in employment over the past year, following a significant impact during the “Iron Swords” war. According to data from the Employment Service, the number of job seekers in the city stood at only about 1,000 in March, less than a third of the peak number (3,323) recorded in November 2023. For several months, Eilat’s unemployment rate has been among the lowest in Israel, reaching just 2.8% in March.

However, while the local job market demonstrates resilience, the tourism sector faces considerable staffing challenges. Hotels, in particular, report difficulties in recruiting and retaining Israeli workers. Employment Service data from March shows that 21% of job seekers in Eilat were looking for hotel work, compared to only 2.5% in Tel Aviv. This difficulty is particularly pronounced in positions that cannot be filled by foreign workers.

To address this critical issue and support the tourism sector and related businesses amidst the city’s accelerated development, including new hotels, shopping centers, and attractions, Mayor Eli Lankri recently held a working meeting with the CEO of the Employment Service, Adv. Einbal Mashash, and the CEO of the Israel Hotel Association, Sivan Datouker. The meeting, which also included representatives from the Eilat Hotel Association, the municipality, and the municipal tourism corporation, resulted in an agreement to formulate a multi-year action plan.

The plan aims to tackle the labor shortage by making hotel work more appealing to Israeli workers, both residents and those from outside the city. Practical steps will include creating employment paths with clear opportunities for advancement, offering professional courses and training, and introducing technological employment avenues to attract young Israelis to work in Eilat. The goal is to increase recruitment across the tourism sector, including attractions, restaurants, and retail.

Proposed solutions include employment tracks that guarantee career progression, training programs leading to future employment in learned professions, and temporary employment options where commitment to a work period could lead to training in other fields. The plan will also incorporate technological and digital components into the hotel industry to expand job offerings and attract skilled workers, relevant to the age of artificial intelligence and the changing job market.

A professional task force, comprising representatives from the government, municipality, and hotel association, will be established to formulate a comprehensive plan to recruit, retain, and nurture Israeli workers in the city’s tourism sector. This includes establishing advancement tracks both within and outside the industry, as well as creating technological and digital employment opportunities. The team is expected to submit its recommendations within 45 days to prepare for the upcoming summer season. Additionally, the Mayor and the CEO of the Employment Service agreed to immediately initiate professional training tailored to the city’s needs and the characteristics of its job seekers.

Eilat already has successful collaborations to promote employment, such as a free bachelor’s degree program combined with hotel work, a maintenance course in partnership with the municipal employment opportunity center and the employment service, annual job fairs, and collaborations with youth centers.

Eilat Mayor, Eli Lankri, stated, “Eilat is demonstrating resilience and stability, reflected in the sharp decrease in the number of job seekers and the development momentum the city is undergoing. However, a true recovery will come when the labor shortage in the tourism sector – the beating heart of the economy and the city in general, including the construction sector and businesses – is resolved. Eilat needs workers. Period. Working here is possible, but it must also be truly worthwhile, rewarding, and attractive. And for that to happen, we also need the state with us. I welcome the partnership with the Employment Service and the Hotel Association, and the decision to establish a task force to formulate a strategic plan – with quick and effective implementation.”

CEO of the Employment Service, Adv. Einbal Mashash, commented, “The consistent and impressive recovery of Eilat’s economy is clear evidence of the strength of the local labor market and the responsible leadership of Mayor Lankri and his dedicated team. However, the city’s hotel sector, which is the spearhead of Israeli tourism, faces a real difficulty in retaining and advancing employees. I welcome today’s meeting at the Mayor’s office and the decision to establish the task force. It is imperative to formulate a policy strategy that will allow the city’s hotel sector to benefit from a stable and quality workforce, while also providing advancement tracks that will encourage and incentivize work in the sector and its retention, while nurturing both the sector and its employees. Therefore, only through a joint effort by the government, municipality, and the Hotel Association can we provide an effective and sustainable solution”.

CEO of the Israel Hotel Association, Sivan Datouker, added, “I welcome today’s gathering with the CEO of the Employment Service, the Mayor of Eilat, and the relevant teams for a roundtable discussion regarding the challenges facing the city, given that the vast majority of the city’s economy relies on tourism. At today’s meeting, we decided to establish a joint team whose goal is to increase the supply of Israeli workers employed in the city, with an emphasis on the young population and discharged soldiers who can contribute greatly to the city, especially to the hotel sector in various roles. The issue of manpower is a challenging and strategic one for the hotel sector, and I hope that through joint efforts we can bring about a real change and bring Israeli workers to the sector”.