Eilat Hotel Tax Dispute May Impact Accommodation Prices

Planning a trip to Eilat? Keep an eye on accommodation costs as two major hotel chains – Fattal and Jacob – are currently battling the city over property tax rates that could impact room prices.

The dispute centers around municipal property taxes (arnona) for hotels that housed evacuees during the war. Both hotel groups filed appeals against Eilat’s tax authority after a committee ruled that temporarily housing displaced residents doesn’t justify changing the hotels’ tax classification from commercial to residential rates.

While this might sound like bureaucratic noise, it actually matters for travelers. If hotels end up paying higher taxes, those costs often get passed on to guests through room rates. Eilat, Israel’s gateway to the Red Sea with its world-class diving and beach resorts, is already one of the country’s pricier destinations.

For now, you can still find great deals in Eilat, especially during shoulder seasons. We recommend booking accommodations early and comparing prices across different hotel groups. The legal process will likely take months to resolve, so immediate travel plans shouldn’t be affected. Keep following IsraStar Tours for updates on how this develops and impacts your Eilat getaway costs.