Leading Sectors for U.S. Export and Investment

Commercial Sectors

Agricultural Sectors

Automotive Aftermarket Parts & Equipment

Overview

The Israeli automotive industry is solely dependent on imports having no manufacturing base of its own. Industry sources predicted last year that from 2011, the number of motor vehicle deliveries would average 240,000 units per annum, but this did not materialize. Only 229,944 units were delivered in 2011, an increase of 3.6% over 2010. Of the 2.5 million cars on Israeli roads, U.S. market share has remained flat at 3.7%, but U.S. manufacturers plan to increase market share with the introduction of smaller more fuel efficient vehicles together with the strong shekel. The balance are imports from Europe (45.9%) and Asia (50.4%) - Japan 39.1% and South Korea 11.3%.The five top brands are Hyundai, Mazda, Toyota, Chevrolet (Korea), Ford (EU).

Total imports of aftermarket products reached $443 million in 2011 an increase of 8.6% over 2010. The bulk of these imports come from Germany, Japan and Asia. Imports from the U.S are estimated at $27 million annually.

Car ownership has been steadily rising in Israel. It increased by an average of 0.5% every year between 1999 and 2009, and now averages NIS 1,458 ($394) a month. Part of the reason costs are so high, are the high taxes on vehicles and gasoline, and the high cost of replacement parts and repairs. Despite OECD directives, taxes on new cars in Israel are among the highest in the world (83%), which industry sources blame as the main factor preventing the car market from reaching its full potential. Though in 2011, the GOI did introduce tax incentives on imports of electric vehicles in order to help reduce carbon emission gases. Moreover, the Minister of Transportation recently appointed a special committee to undertake a comprehensive analysis of the country's vehicle market, point out problems and offers solutions. According to industry sources some of the committee’s recommendations will include the following: lessening restrictions on individual car imports, appointing a ministry official to make sure importers are competitive, blocking major importers from having exclusivity agreements with multiple manufacturers, regulating the prices importers charge garages for replacement parts and know-how, limiting discounts to leasing companies to no more than 5% of what consumers pay, and letting electric car owners charge their cars at any home outlet. The final report will be submitted to the Minister in March 2012 for review and approval.

Best Prospects

Opportunities

Israeli importers are always on the lookout for quality products at competitive prices – usually in that order. For additional information, please contact Commercial Specialist Alan Wielunski: email: alan.wielunski@trade.gov; Phone: +972-3-519-7390.

Resources

Central Bureau of Statistics; Industry Sources; Israel Vehicle Importers Association; Federation of Israeli Chamber of Commerce

Educational Services

Overview

At the end of the 2010/11 academic year, 245,720 Israeli students attended accredited universities and colleges. The growth rate has slowed down to less than 4% annually in the last decade, compared to 8% a year in the 1990s, when higher education became more accessible to the general public. There are 65 institutions of higher learning in Israel. Of the 245,720 students registered in state and public colleges, 183,158 (74.5%) were at the undergraduate level. Post-graduate students taking masters’ degrees numbered 50,765 (20.6%) of the student body. PhD students numbered 10,590 (4.3%) of the student body and 1,207 (0.6%) non-degree diploma students. The total excludes the 46,100 students studying at the Open University. The Council for Higher Education accredits all new institutions and programs and authorizes them to award academic degrees. The growing number of students entering private colleges has changed the landscape of the Israeli higher education system. 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 standard of education provided by state universities. Undergraduate students are entering these institutions in ever-increasing numbers (19.3% of all undergraduate students in 2010/11), thereby allowing the seven public universities to focus more on graduate and research level studies. Today, institutions of higher education in Israel number 7 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 and 1 Open University. In 2011, revenues of the top 20 local universities and community colleges exceeded $2 billion.

Best Prospects/Services

Courses of Study

Israeli 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: business administration, law, clinical psychology, industrial/organizational psychology, culinary arts, film, music, video editing, advertising, East Asian studies, international relations, computer sciences, engineering, architecture, social work, mass communications, pre-med, and life sciences. Increasingly popular is ecology, environmental sciences, make-up artistry, image consulting, drug and substance abuse counseling, and various expressive therapies.

Exchange Programs and Cooperative Agreements

In recent years there has been a growing trend by US schools to sign cooperative agreements with selected Israeli universities and colleges in an effort to attract graduate and post doctoral students to their institutions and to work on collaborative research and development projects in areas of common interest.

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. According to the Graduate Management Admission Council (GMAC), almost 2,500 Israeli students took the GMAT in the academic year 2010/2011, more than double from 10 years ago. Even more impressively, Israel has the highest number of GMAT takers per capita of any country in the world, and provides the seventh largest number of takers of any country in the world, ahead of France and Germany. Best prospects for U.S. educational institutions are to offer a degree integrated with practical work experience. According to 2011 statistics, a total of 25,000 Israelis requested information and showed interest in study programs in the States. In 2010/11 there were 2,701 Israeli students studying in the United States. (Breakdown: 789 under-graduates, 1,452 graduate and 460 other). For additional information, please contact Commercial Specialist Alan Wielunski: email: alan.wielunski@trade.gov; Phone: +972-3-519-7390.

Resources

Central Bureau of Statistics

Council for Higher Education

Electronic Components (ELC)

Overview

	2008	2009	2010 (est.)
Total Market Size	830 (-14.5%)	656 (-21%)	997
Total Local Production	1,368	1,081	1,513
Total Exports	1,308	1,033	1,446
Total Imports	770	608	930
Imports from the U.S.	214	169	250

Units: Millions of U.S. dollars. Source: www.technologies.co.il

The year 2010 was a positive surprise in the electronics world. The Israeli market for the first time almost reached the $1 billion mark with a market worth of $997 million. There was a 40% increase in orders which caused a worldwide stock shortage and long delays in supply chain. After a difficult year in 2009 the Israeli electronics market is showing great recovery.

Industry experts estimate that market growth will continue as there is a steady demand for consumer goods such as flat TV, computers, cameras, media electronics and more. The downside is that extended delays in the supply department that can range up to 3-4 months. This has opened the door to brokers and dealers with export surplus and has increased forgery, a problem which forced manufacturers to send out guidelines on how to handle forgery and to protect themselves from product responsibility.

Israel’s leading sectors are the defense and medical industry, which showed stability even in difficult times. Sectors that are showing a healthy recovery are the communications and safety & security market. There is an increased demand for passive components and RF.

Israel is a major importer of electronic components. Total imports still totaled $930 million, with nearly 30% coming from the U.S. Although the U.S. remains one of Israel’s main components suppliers, Asian companies are proving tough competitors. Numerous multinational corporations have also taken advantage of Israel’s technical expertise by establishing R&D facilities and manufacturing plants in the country. These include Applied Materials, General Electric, HP, IBM, Intel, Microsoft, National Semiconductor and Vishay.

Best Prospects/Services

As a developed technology market, Israel is always looking for innovative technologies and components to enhance product technical features. Developments in the Israeli telecom, defense and homeland security markets have had a positive effect on the increased demand for electronic components. Israel’s purchasing nature is based on two main factors, price and technical support.

Opportunities

Israel offers opportunities for U.S. exporters of active components, RF & microwave, power amplifiers and semiconductors. There are a large number of Israeli companies that represent U.S. firms in this sector, always looking for new-to-market U.S. companies with good service and competitive prices that they can represent.

Web Resources

Israel Association of Electronics & Software Industries

Electricity

Overview

Israel Electric Corporation (IEC)

IEC is Israel’s electricity utility company.  The company owns, maintains and operates 17 power stations sites, including 5 sites for steam driven power stations, and the national transmission and distribution systems.  With an aggregate installed generating capacity of 11,649 MW, the company holds 98% of the country's generating capacity.  As a state-owned company, IEC is included in Israel's WTO/GPA agreement.  As such, IEC is required to use public tender procedures for procurement of equipment needed for new construction, maintenance, upgrading and conversions of its systems.  While some projects are tendered out in open tender procedures, in most cases, a selective tendering process requires potential suppliers to pre-qualify to be included in IEC's approved suppliers' list.   IEC’s 2010-2014 procurement plan is available online. 

Renewable Energy

In the past five years, the Israeli government issued several decisions aimed at promoting renewable energy.  In 2009, the government determined a target for renewable energy production to reach 10% of the country’s generating capacity by 2020 and the local industry started to grow at a fast pace. 

PV systems dominate the Israeli renewable energy market.   The regulator, the Public Utility Authority (PUA) – Electricity, established Feed-in Tariffs (FIT) with a cap of an aggregate installed capacity of 850MW for PV systems.  In 2008, the PUA issued FIT for small PV installation of up to 50kW up to an aggregate installed capacity of 50MW. This quota has already been reached.  In 2009, tariffs and rules were published for PV facilities of 51kW-5MW up to an aggregate installed capacity of 300MW.  As of 2011, the FIT for these facilities is reduced by 5% P/A.  In 2011, PUA determined tariffs for large PV facilities and for thermo-solar plants.  This tariff will be valid till the aggregate quantity of 500MW is reached or until the end of 2017, whichever comes first.  In 2011, PUA also approved regulations for wind facilities up to an accumulated quota of 800MW.  

Israel has numerous technology firms developing renewable energy technologies, and there is much room for cooperation and joint R&D with Israeli firms also in third country markets.  The bi-annual Eilat Renewable Energy conference and exhibition (www.eilatenergy.com) provides a good opportunity for U.S. renewable energy companies to present their technologies and network with Israeli companies and government officials.

  

Independent Power Producers (IPP) 


The Electricity Law provides the framework for the increase of IPPs from 0.6% to 20% of Israel’s installed generating capacity.  The national pipeline infrastructure for the supply and distribution of natural gas is almost complete and enables major industries to set up independent power stations to provide for their energy needs and sell the remainder to the national grid.  With the recent major off-shore natural gas discoveries, the PUA has granted some two dozen conditional generation licenses to IPP developers for a total in excess of 4,000 MW.  The large number of projects in various planning stages offers good opportunities for U.S. manufacturers, in particular of cogeneration equipment. 

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 gas field, but in the past year, the delivery of Egyptian gas was interrupted more than 10 times.   With the discovery of the Tamar and Leviathan natural gas fields, new underwater pipelines are in the construction stage.   


Best Prospects/Services

Electrical Power Generation, Transmission and Distribution Equipment

Opportunities

Israel Electric Corporation is operating under an emergency plan, making substantial investments in expansion and improvements to its generation, transmission and distribution systems. To meet projected future electricity demand, Israel Electric is investing approximately $1 billion annually.   Good opportunities exist also in the IPP sector.  The Public Utility Authority for Electricity, the regulatory body, has, over the past few years, issued numerous licenses for IPPs including to Dorad for an independent 800MW power station and for combined cycle plants at major industries and desalination plants.  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 enjoy a price advantage over EU-based manufacturers.

IPP’s, renewable energy power stations, e.g. solar thermal energy plants and biomass technologies, wind turbine generators, renewable energy technologies

For additional information, please contact Commercial Specialist Irit van der Veur by email: irit.vanderveur@trade.gov; Phone: +972-3-519-7540.

Web Resources

Israel Electric Corp.

Ministry of Energy and Water Resources

Homeland 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.  This is one of Israel’s high-growth export industries.  Israel has over 400 exporters of security technologies and services, including many integrators and service providers.  The homeland security industry's annual sales are estimated at $5.5 billion, with exports accounting for approximately $2 billion.  Imports are an estimated $550 million, with 60% U.S. market share.  The 20 percent growth rate seen in 2007 and 2008 leveled off somewhat in the past three years because of the global financial crises, but the local industry continues to expand into new markets and sees reasonably good growth potential for 2012.  U.S. companies that want to participate in this sector should be knowledgeable of U.S. export control laws.  

Sub-Sector Best Prospects

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. U.S. suppliers dominate the imports with a 55% market share.

The total imports of homeland security equipment and services are estimated at $500 million. Good opportunities exist 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. 


For additional information, please contact Commercial Specialist Irit van der Veur: email: irit.vanderveur@trade.gov; Phone: +972-3-519-7540. 


Web Resources

Israeli Export and International Cooperation Institute
U.S. Department of Commerce Export Control Regulations
U.S. Department of State Export Control Regulations

Intelligent Transportation Systems

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 aids, 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.

In 2010, Israel adopted the US standard for ITS architecture which is expected to take 10 years to fully implement across all transit authorities operating in the country.

Total planned transportation infrastructure spending in Israel is planned to reach $16 billion in the medium term (2008-2015). Highway spending alone could reach approximately $6.4 billion over the next five years. In 2011-12, the INRC will embark on the development, implementation and operation of a national traffic management system as part of its comprehensive traffic management program in order to proactively manage the road network, optimize existing capacity, reduce congestion, enhance safety and improve air quality. ITS spending by the Israel National Roads Company (INRC) may reach as high as $40 million.

Sub-Sector Best Prospects

Roughly 40% of the ITS budget is allocated to procuring hardware components such as; cameras, electronic signage and detectors. This product group alone is expected to reach $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. For additional information, please contact Commercial Specialist Alan Wielunski: email: alan.wielunski@trade.gov; Phone: +972-3-519-7390.

Web Resources

Israel National Roads Company
Ministry of Transport & Road Safety

Medical Equipment

Overview

Israel is an attractive market for U.S. manufacturers of medical equipment. Characterized by a technologically advanced market economy, Israel has a public healthcare system that ensures a universal healthcare coverage to its entire population via 4 health management organizations and a network of hospitals and doctors. Israeli doctors and healthcare facilities are modern and quickly adopt new, cost effective technologies and procedures. Many Israeli doctors did their Residency in the United States and maintain personal and professional relationships with colleagues at major U.S. medical centers. In addition, easy market-entry conditions and receptiveness to buy U.S. technologies and services make Israel an ideal destination for U.S. medical exports.

U.S. companies interested in exporting medical equipment to Israel need to appoint a local distributor, agent or other legal representative to register the device with the MoH. The device registration should be accompanied by one of the following documents: 510(k), Pre-Market Approval (PMA) or an Investigational Device Exemption (IDE). Implantable medical devices require mandatory labeling in the patient’s file for tracking and surveillance purposes. Market access is fairly clear for U.S. FDA and CE Mark-approved medical products.

Sub-Sector Best Prospects

A growing awareness to preventive medicine during 2011 opened the market to advanced diagnostic procedures. This shift includes public campaigns for early detection of breast and colon cancer and inclusion of standard, age-based diagnostic procedures in the universal healthcare reimbursement list know as the “healthcare basket”.

Additional best sales prospects exist for U.S. manufacturers of innovative technologies in many medical fields, including medical imaging and image guided instruments, preventive medical treatments, cardiology equipment, equipment and supplies for plastic surgery, dental instruments, equipment and technologies for pain management, physiotherapy, ozone & oxygen therapy, OR equipment, point of care diagnostic kits and wound management technologies.

Opportunities

The U.S. Commercial Service at the U.S. Embassy in Israel helps American exporters enter the market through partner search and trade promotion programs. Please contact: yael.torres@trade.gov or visit http://export.gov/israel/ for more information.

Web Resources

U.S. Department of Commerce Trade statistics

Israel Central Bureau of Statistics

Israel Ministry of Health

Offshore Gas

Overview

Since June 1999, major offshore gas discoveries offer to dramatically transform Israel’s energy economy.   The Noa and MaryB fields with approximately 1.5 Tcf were discovered by the Yam Tethis group (comprising the Avner Oil, Delek Drilling, and Noble Affiliates' Samedan subsidiary), and commercial gas production began at in 2004. Most of the gas is currently used by the Israel Electric Company to operate power plantsconverted from fuel oil to natural gas utilization. Following these initial discoveries, natural gas exploration efforts began to accelerate. 

Two major gas fields were discovered in January 2009 and June 2010: an 8.3Tcf find at the Tamar site, approx. 50 mi. off the coast of Haifa in water depth of 5,500 feet, and a 20Tcf reservoir in the Leviathan site, 81 mi. west of Haifa at a depth of 4,900 ft.   U.S. producer Noble Energy is a significant partner of the licensee holders for all major Israeli fields.

The Ministry of Energy and Water Resources is the regulator in charge of petroleum prospecting in Israel, via the Petroleum Unit and the Petroleum Council.  After the Tamar and Leviathan discoveries, numerous investors applied for permits and licenses.  According to the regulations, license owners must begin petroleum prospecting within 4 months of license issuance, commence drilling operations no later than two years following license issuance, and must not linger between the drilling of one well and another for more than 4 months.  Consequently, in 2012, we expect to see many drilling operations. 

The discovery of offshore natural gas resources in Israel has created major investment opportunities in this sector and a few firms, including U.S. companies, are making significant investments.  As Israel moves toward becoming a significant producer, the Israeli government is developing new regulations to oversee the sector, ensure competition, attract investment, and achieve broader energy policy goals.  This has created some uncertainty for investors as taxation levels, licensing requirements and restrictions, and other issues that impact investor decisions and continue to be subject to significant review and in some cases change.  We advise interested companies to contact CS Tel Aviv for information on the latest developments in the sector.

Best Prospects/Services

Logistical support services; shipping services; training services

Opportunities

Israel does not yet have the physical infrastructure, technical workforce and knowledge base to support this fast growing industry.  Local companies are eager to team up with U.S. companies to build the support base allowing the foreign companies to drill for gas.   

Good opportunities exist for service companies providing logistical support to the offshore industry, for manufacturers of ships to service offshore rigs.  Technical training services are required to educate the local workforce.  There are also opportunities for academic cooperation with local universities and colleges.

For additional information, please contact Commercial Specialist Irit van der Veur: email: irit.vanderveur@trade.gov; Phone: +972-3-519-7540

Web Resources

Ministry of Energy and Water Resources

Telecommunications

Overview

The Israeli telecom market is relatively stable in terms of size, with growth projected to go from $6.9bn in 2010 to $7.1bn in 2015. According to Pyramid Research Market, growth will rely on a combination of new services and networks rather than increasing number of subscribers. Over the next five years, the majority of growth in the Israeli telecom market will arise from fixed and mobile broadband, VoIP, and pay-TV. "As the ability to offer multiplay services becomes more important in the Israeli market, operators look for mergers or partnerships that will allow them to expand their product ranges. Differentiation through discounted bundles and value-added services becomes vital. With 85 percent of households having fixed broadband access and the proliferation of 3G networks by all mobile players, the market is ripe with opportunities for convergence and multiplay offers

Israel’s mobile communications market is saturated. Competition has led the mobile network operators to engage in a round of merger and acquisition activity with fixed line players to offer integrated services. Competition further intensified following the granting of MVNO license to Rami Levi Celllar, and YouPhone, and an additional MNO license to Golan Telecom, in 2011.

The new fixed-line forecast for Israel expects continued fixed-line growth in 2012 and 2013, following the pattern witnessed in 2011. Meanwhile, it has yet to be seen what impact a rush by Israel’s ISPs to reduce access tariffs will have on broadband subscriber numbers. By the end of 2011, Israel’s fixed broadband subscriber base had risen to 1.893mn, which reflects full year growth of 4.6%. This figure does not include mobile broadband subscribers, whose inclusion would raise Israel’s broadband penetration rate considerably.

Recent news of note includes the announcement in September 2011 that shareholders in Israeli cableco HOT Telecom had finally approved the acquisition of local iDEN service provider MIRS Communications. The merger with HOT will allow the cableco to provide a full range of telecoms services, including fixed line voice, high speed internet and television.

On March 1st, 2011, the Israel Ministry of Energy & Water issued a regulation, “Maximum Electric Power in Standby Mode for Home and Office Appliances (Regulation 5771-2011).” The regulation is based on the existing EU “Regulation on Standby and Off Mode (EC 1275/2008).” The regulation requires IT products coming into Israel to be tested by the Standard Institution of Israel (SII) before custom release. Companies will need to provide SII with a full list of products to define product “families” for prototype testing.

Product scope includes: Information technology equipment, computers, computer monitors and printers, audio equipment, radios, amplifiers and wireless telephones, television receivers, digital decoders to receive cable and satellite broadcasts (excluding digital decoders operated by broadcast centers or coded broadcasting.

Best Prospects/Services

Israel’s very high broadband penetration rate provides great potential for triple play and digital media technologies. 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.

Within the fixed telephony and broadband market telecoms incumbent Bezeq is losing market share to major cable TV operator HOT and alternative telcos. Much of this healthy competition has been made possible by a number of regulatory initiatives, initially the encouragement of infrastructure-based competition and later the development of a viable wholesale market.

The mobile voice revenue declined in 2011 by more than 15% due to regulator implementation of interconnection charge cuts. We expect mobile voice revenue to continue to drop over the forecast period at a 5% CAGR due to further regulator tariff cuts and intensifying competition in the mobile market, demonstrating a decline from the expected revenue of $2.79bn in 2011 to $2.16bn by 2016. At the same time, we expect data to continue growing as both fixed and mobile operators are investing in the deployment and upgrading of new networks. For example, the incumbent operator, Bezeq, is looking into expanding its network by providing FTTC-based VDSL or direct FTTH services.

Rami Levy Hashikma Marketing received a Mobile Virtual Network Operator license from the Israel Ministry of Communications. The company sells advanced mobile telephone services in its supermarkets. In February 2011 Rami Levy signed an agreement with Israeli mobile phone provider Pelephone, allowing the supermarket chain to use Pelephone's infrastructure to provide cellular phone services. In December 2011 Rami Levy Communications went live with the opening of two branches in Jerusalem.

After the introduction of lower-cost cellphone service by Rami Levy, another company from outside the cellphone industry – energy conglomerate Dor Alon – will also be selling cellphone service, with rates ranging 40% - 50% lower than what the “traditional” service providers charge. Alon Cellular, a subsidiary of Dor Alon, will begin operating in March 2012, operating under the name YouPhone. YouPhone will be using existing cellphone service infrastructure (in this case, Orange's) to sell services to the public. The use of the cellphone companies' infrastructure by virtual providers was one of the conditions Pelephone, Cellcom and Orange had to agree to in order to get licenses to the frequencies they use for cellphone service.

Golan Telecom participated in the Tender the Israeli Ministry of Communications conducted and won the Mobile Operator's License. The company plans to provide the customer with a complete bundle of advanced cellular services. Golan Telecom is in the midst of mobilizing the development and construction of the new mobile operator on all engineering, service and operational fronts: technological infrastructures, IT systems, marketing, sales, customer service and support. The company intends to launch its services to customers during 2012.

The mobile 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.

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.

The government of Israel seeks the establishment of a privately held third communication infrastructure company.   This is one of the most significant Israeli communication ventures in recent history and an opportunity, for the selected investor, to enter a market which has one of the world’s highest mobile and household broadband penetration rates.  The private investor will own 51% of the share capital and the IEC, 49%.

Following is information on the investor selection process: http://www.financeisrael.mof.gov.il/FinanceIsrael/Docs/En/pressReleases/20111023.pdf

For additional information, please contact Commercial Specialist Sigal Mendelovich: email: sigal.mendelovich@trade.gov; Phone: +972-3-519-7491

Web Resources

Ministry of Communication
Israel Association of Electronics & Software Industries

Travel & Tourism

Overview

Israeli travelers rank the United States as a preferred travel destination. In 2011 there were over 310,000 entries by Israelis to the United States. The majority of Israelis who travel to the United States are visiting family (44%). Business travelers account for 25% as well as leisure, recreation and holiday travelers. Conference attendees account for only an estimated 3% of all arrivals from Israel. The most popular activity participation while in the Unites States are shopping and dining, followed by art gallery/museum, sightseeing in cities, visit historical places and amusement and theme parks. Only 20% of Israeli visitors to the United States stated they are interested in touring the countryside, visit national parks or nightclubs. At least 65% of Israeli travelers to the United States plan their trip weeks in advance. At least 50% of travelers use a travel agency as a primary source of information for trip planning. The average length of stay is 12 days. The average expense per person per day in the United States is $200 including accommodations, meals and shopping (not including airfare). Industry experts report over $1 billion in expenditure per year by Israelis within the U.S. on travel-related services, not including airfare.

El Al Airlines, United, U.S. Airways and Delta operate 10 daily, direct flights from Tel Aviv to New York, Philadelphia and Los Angeles. Most European airlines offer competitive prices and routes to the U.S. via Europe. Over 500 travel agents and about 20 wholesale tour operators work in the Israeli outbound travel market. Operators and airlines advertise special packages and seasonal deals on a daily basis. The high seasons for travel occur around the July-August summer vacation and the High Jewish holidays in September, October and April. Tour operators specialize in market segments rather than in specific destinations, and most operators are conservative in selecting new travel products

Best Prospects/Services

The most popular activity participation while in the Unites States are shopping and dining. Israelis are also attracted to specialty accommodations such as boutique hotels and bed & breakfast in exotic sceneries. Wine tours that include specialized culinary experience, topped by outlet shopping would make a highlight of any trip.

Opportunities

Boutique hotels, culinary tours, outlet shopping and family travel destinations may find opportunities in Israel, especially by offering new travel products and a high level of services. For promotion and market information please contact Commercial Specialist Yael Torres: email: yael.torres@trade.gov; Phone: +972-3-519-7611.

Web Resources

U.S. Dept. of Commerce Office of Travel & Tourism Industries

Israel Central Bureau of Statistics

Israel Ministry of Tourism