The Tourism Ministry Will Offer a EUR45 Incentive Per Passenger to Airlines
Flying Directly to Ovdah in the Winter Season 2015/2016

Tourism Minister Dr. Uzi Landau: "We welcome this directive which is a
break-through that will lead to significantly increased tourism traffic to
Eilat. The Tourism Ministry invests great effort in bringing foreign
tourists back to Eilat and, after investigating alternatives to
incentivizing charter and scheduled flights into Ovdah, we found that this
is indeed the best incentive. Tourism accounts for about 80% of the Eilat
economy and this process will strengthen all the different sectors that are
dependent on tourism."

Ministry of Tourism - Jerusalem, April 20, 2015 - The Tourism Ministry is
working to bring the European tourist back to Eilat. The ministry will offer
an incentive of EUR45 per passenger to aviation companies operating direct
flights into Ovdah, the airport that serves the resort city of Eilat, during
the upcoming winter season 2015/2016. This according to a new Tourism
Ministry directive and as a result of the incoming tourism crisis in Eilat.

Eilat has suffered from a drop of tens of percentage points in incoming
tourism from Europe following Operation Protective Edge. In addition,
incoming tourism is also affected by the economic crisis in Russia, which is
the second largest source country for incoming tourism (after the USA) and
by the high prices relative to the competition. During the previous winter
season, from September 2013 to February 2014, about 40,000 tourists came to
Eilat as opposed to 12,000 in the same period this year.

This winter, 3-4 weekly flights arrived from Europe, as opposed to 15-20
weekly flights in the previous winter season. The decline from Russia has
been even greater: During 2015 only 2 weekly flights flew into Ovdah, as
opposed to 8-9 direct flights in 2014. In order to increase the numbers of
international direct flights into Ovdah, a financial incentive for the
airlines was required. As a result, the ministry will publish a new
directive that promises a financial incentive to the airlines for every
passenger arriving in Eilat. The incentive will be offered for the period
between the Jewish holidays of Succot 2015 and Passover 2016 for up to
80,000 tourists. The directive is addressed to aviation companies and
tourism wholesalers and any other tourism body who operates charter or
scheduled flights into Ovdah from any international destination.

There are some 50 hotels in the city, of different standards, offering about
12,000 rooms.