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									DEFINITIONS AND EXPLANATIONS TOURISM Visitors: Tourists and day visitors (including cruise passengers). Tourists: visitors with a foreign passport, who enter Israel under a tourist visa and leave it on a date other than the entry date (not the same day). Does not include immigrants, immigrant citizens, potential immigrants, foreign workers and day visitors. Day visitors1: Visitors who enter and leave Israel on the same date (the same day). Including cruise passengers. Cruise passengers: Visitors who enter Israel on a cruise, or on foreign navy vessels, who usually come for a day or two and spend nights on board the ship. Israeli: an Israeli citizen or a permanent resident without Israeli citizenship, who goes abroad on an Israeli passport for any purpose. Israeli citizens residing abroad who pass the borders with an Israeli passport are also included. The data do not include movements of Arabs from Judea and Samaria and the Gaza Area. Data on the total number of departures/entries of Israelis and the age data were obtained until March 1993 through a form filled-out by a departing/entering resident at the state’s borders. This procedure was instated when the state was founded. In April 1993 this form was canceled and since then, movement of Israelis at the borders (departures/entries) are recorded by computer and the tapes are transferred daily to the Border Control System of the Ministry of the Interior. Problems in this system caused an especially great loss of data in 1994. Therefore, data were estimated for 1994, based on external sources of the border police and the Israel Airports Authority. Data on main country of destination of Israelis and the purpose of their journey have been obtained through a sample survey conducted from 1994 until March 2000, when the survey ended. The survey population includes residents aged 15 and over who depart Israel via Ben Gurion Airport. The sample size is about 2% of all residents who depart in July and August, and about 3% of residents who depart in the other months. TOURIST ARRIVALS – LOGICAL CHECKS Until the end of 1999, tourist files were received from the Ministry of the Interior through the Compaq company. These files were based on entry of a form filled out by the tourists upon their arrival in Israel. As of 2000, these files are obtained from the Israeli Border Police, and they are based on entry of the tourist’s details by controllers at the border checkpoints. Because the data consist of 1%-2% duplicate records, 2% was deducted in the final estimate of tourists for all data processed up to 2004. At the beginning of 2005, a study of tourist files was conducted at the CBS, and the findings revealed that 6% of the records were duplicates. Consequently, 6% of the records were deducted in 2005. Possible reasons for obtaining duplicate records in a file are: 1. A tourist with two last names was entered in two records. 2. Correction of incorrect data generates an additional record. 3. When a person has multiple citizenships, duplicate records are generated.

In 2007, due to the relaxation of criteria for provision of short-term visas to organized groups, there are day visitors who are not necessarily cruise passengers.
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A superfluous click on the “enter” key creates duplicate files.

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Data published
1,505,606 94,027 97,540 106,192 141,559 118,326 121,702 147,901 176,910 122,159 128,432 110,430 140,428

Data adjusted for duplicates
1,436,970 90,132 94,964 103,234 135,837 112,421 114,732 140,134 167,230 116,886 122,167 106,308 132,925

-68,636 -3,895 -2,576 -2,958 -5,722 -5,905 -6,970 -7,767 -9,680 -5,273 -6,265 -4,122 -7,503

Percentage of error
-4.6 -4.1 -2.6 -2.8 -4.0 -5.0 -5.7 -5.3 -5.5 -4.3 -4.9 -3.7 -5.3



Published data
1,902,787 115,034 110,887 146,784 162,639 171,887 157,315 199,145 193,718 156,807 162,748 163,292 162,531

Data adjusted for duplicates
1,879,170 113,117 109,854 145,581 165,703 167,471 159,349 196,402 188,432 152,626 160,631 162,483 157,521

-23,530 -1,983 -1,046 -1,219 3,103 -4,429 2,049 -2,698 -5,268 -4,174 -2,067 -817 -4,979

Percentage of error
-1.2 -1.7 -0.9 -0.8 1.9 -2.6 1.3 -1.4 -2.7 -2.7 -1.3 -0.5 -3.1

Comparison of the published data with data adjusted for duplicates reveals that the data published for most of the months in 2005 were very close to the results obtained after deducting the duplicate records, following the adjustment of the general deduction to 6% in 2005. In 2004, the published data were 4.6% higher than the actual results on the average, after deducting only 2% of the duplicate records.

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Country Austria Italy Argentina United States Belgium Brazil Germany Netherlands United Kingdom Spain France Canada Sweden Published data
11,117 41,990 11,734 379,127 22,762 11,415 75,896 40,379 146,483 21,396 257,486 43,571 12,596

Data adjusted for duplicates
11,209 41,812 10,136 382,619 22,589 9,747 68,016 36,257 148,410 13,671 226,732 44,187 12,816

92 -178 -1,598 3,492 -173 -1,668 -7,880 -4,122 1,927 -7,725 -30,754 616 220

Percentage of error
0.8 -0.4 -13.6 0.9 -0.8 -14.6 -10.4 -10.2 1.3 -36.1 -11.9 1.4 1.7

Substantial discrepancies were revealed for Spanish-speaking countries, because individuals have multiple family names. Therefore, the amount of duplicate records in Spain was as high at one-third. In France, the number of duplicate records was also relatively high.

Country Austria Italy Argentina United States Belgium Brazil Germany Netherlands United Kingdom Spain France Canada Sweden

Published data
13,264 72,874 14,776 457,518 25,523 19,763 105,224 49,808 156,748 51,867 311,438 50,784 18,334

Data adjusted for duplicates
13,909 76,466 13,299 477,984 26,502 16,512 97,240 46,223 164,942 34,006 284,032 53,505 18,865

645 3,592 -1,477 20,466 979 -3,251 -7,984 -3,585 8,194 -17,861 -27,406 2,721 531

Percentage of error
4.9 4.9 -10.0 4.5 3.8 -16.4 -7.6 -7.2 5.2 -34.4 -8.8 5.4 2.9

The number of tourist arrivals per month after deducting 6% was similar to that obtained from the logical check. However, for some countries the deduction had to be conducted differentially.

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AIR TRANSPORT Passenger: the data exclude movements of air crew and passengers in transit. Regular flights are defined as a series of flights fulfilling at least the following conditions: they are performed by a passenger aircraft and open for free sale to the general public; they are planned and adjusted to the needs of traffic, and they are carried out according to existing aviation agreement, the operators’ license and a fixed timetable which is available to the general public. The division into countries is based on the nationality of the airline. Charter Flights are defined as flights for which the organizer or organizers charter the seating capacity of an airplane from any company. The charter may be for one flight or for a series of flights. INCOME AND EXPENDITURE IN FOREIGN CURRENCY Income in foreign currency from tourists in Israel includes foreign tourists' expenses in Israel on goods and services. Not included: income of Israeli shipping companies and airlines from fares on international lines, and also expenses of foreign diplomats in Israel are not included. It should be mentioned that expenses of foreign workers in Israel are presented in the Balance of Payments together with expenditures of tourists in the item income from tourism. According to the World Tourism Organization (W.T.O), the expenses of foreign workers are not defined as income from tourism. Therefore, as of Quarterly 2/2002 data on income from tourists are presented separately. Expenditure of Israelis travelling abroad includes expenditure of Israeli residents going abroad as tourists, on business, as students, for health reasons, etc. excluding the cost of flight tickets. The sums do not include travel allowances spent abroad by government employees traveling on business (regarded as a government expenses).
A correction of expenditure of Israeli residents travelling abroad Data on expenditure abroad of Israeli residents were corrected as of the 2/99 quarterly, in light of results emanating from “Expenditure of Israelis Travelling Abroad Survey” which was conducted during 1997 and a few months during 1998. The population of the survey included all Israelis who stayed abroad at least on day (and up to a year) during the year. The survey questioned Israelis returning from abroad about the sum of their expenditure abroad - whether they paid in advance (in Israel) or whether they paid during their stay abroad. Furthermore, they were questioned on the purpose and destination of their trip. The survey population did not include Israelis whose length of stay abroad exceeded one year nor Israelis living abroad who came to Israel for a visit. This survey is the first of its kind to be conducted in Israel and is meant to improve the quality of data on imported services. A comparison between data from the survey and data published up to now reveals that the average daily expenditure is similar in both methods, but the average tourist days taken into account was different. In the method used up to now, tourist days of Israelis living abroad who came for a visit were also included (they should not be included in the payment balance). Although the number of Israelis living abroad who came to Israel for a visit is relatively low, their contribution to the number of tourist days is high (due to the fact that they are abroad most of the time) and this is where the data were corrected (a reduction in expenditure abroad).

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Correction of data is as of 1990.

Income of Israeli companies from fares on international lines includes also income from passengers who did not arrive in Israel.

HOTELS, RURAL TOURISM, YOUTH HOSTELS AND FIELD SCHOOLS 1. HOTELS a) Tourist hotels Tourist Hotels (listed) In the past, these hotels were called “hotels recommended for tourists.” This definition includes hotels, guest houses, holiday villages, apartotels, and mini-suite hotels which are listed for tourists by the Ministry of Tourism. b) Other Hotels This population includes hotels and other types of accommodations not included in section a above, and which are not defined as “youth hostels affiliated with the Association of Youth Hostels”, “Christian hospices”, “rural tourism in kibbutzim and collective moshavim” and “field schools with hostels” (all, excluding “Christians hospices” are investigated as separated series). The data for this population are obtained by means of a sample. In 1997 a new sample was drawn including about 50 hotels. Data for 1997 are presented twice, based on the two samples. The data obtained based on the new sample for 1997 include approximately 3,300 rooms and approximately 10,500 beds (on average per month) - 3 times greater than the number of rooms obtained based on the old sample, and 4.6 times greater than the number of beds. The total number of person-nights is 3.6 times greater.

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GRADING AND CLASSIFICATION OF TOURIST HOTELS An extensive explanation on graduation of hotels by stars and the transition from the old grading to the new grading appears until Quarterly No. 1, 1993. Abolition of grading: According to an ordinance of the Ministry of Tourism, hotel gradings were abolished as of the middle of May 1992. As of this date, it is prohibited to publish statistical data according to the previous gradation. consequently, data beginning with June 1992 are published only by locality.1 Classification of Hotels by Level. The new ordinance made it necessary to determine an alternate classification for hotels which would enable an improved analysis of the data. A number of possibilities were examined (such as by number of rooms in the hotel or by number of employed persons per room). It was decided to divide the hotels, which have been graded 1 star - 5DL, into four levels, based on two characteristics: character of the hotel (recreational/urban), and the average size of a double room (excluding suites and public areas). The definition remained in effect for hotels, that had been defined as holiday villages and "other" (apartment hotels and mini-suite hotels). The character of the hotel (recreation/urban) and the sizes of the rooms in the hotels were obtained from the file of data which had previously been collected by the Ministry of Tourism for the purpose of re-grading hotels. For hotels which were not examined at that time, and hotels which opened at a later date, the hotel's character and size were determined according to the hotel's building permit, as it appears in the Ministry of Tourism's database. For definition of the four levels which were determined - See Table E below. For the changes of hotels and rooms from classification by grade to classification by level, in December 1991 - See Table F, below.


Data up to May 1992, according to grades, were published up to Quarterly No. 1, 1993.
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TABLE E.- DEFINING HOTEL LEVELS, ACCORDING TO THE AVERAGE AREA OF A DOUBLE ROOM, BY CHARACTER OF HOTEL Average Area of Double Room (sq.m.) Level I Recreation (a) Urban (a) Over 28 Over 26 Level II 23.5-28.0 21.5-26.0 Level III 20.5-23.4 16.7-21.4 Level IV Up to 20.4 Up to 16.6

(a) Recreation hotel: Hotel at recreation site or in city, where guests stay for the purpose of recreation, and where it is therefore assumed that they spend most of their time - day and evening - at the hotel and its facilities. Urban hotel: Hotel in city, or urban center of recreation site, where guests stay mainly to sleep, and where it is therefore assumed that they spend most of their time - day and evening - outside the hotel. Source of data: Minimum requirements for planning hotels, economics and planning division, Ministry of Tourism.

TABLE F.- TOURIST HOTELS AND ROOMS, BY GRADE AND BY LEVEL AND TYPE XII 1991 Level and type Grade Total I II Level III HOTELS Total 5DL stars 5 stars 4 stars 3 stars 2 stars 1 star Holiday villages Other(a) Total 5DL stars 5 stars 4 stars 3 stars 2 stars 1 star Holiday villages Other(a) 241 5 26 68 68 41 17 9 7 26,957 1,789 6,525 9,222 5,450 1,596 340 1,334 701 22 5 16 1 5,433 1,789 3,546 98 56 10 41 5 9,762 2,979 6,192 591 88 26 51 9 2 ROOMS 7,597 2,932 4,223 412 30 59 12 32 15 2,130 636 1,184 310 9 9 1,334 1,334 7 7 701 701 IV Holiday villages Other (a)

(a) Apartotels and Mini-Suite Hotels.


Rooms: rooms with at least one bed intended for guests. Not included are the following: offices (of the hotel or rented out), dining rooms, function rooms, store rooms, apartments not available for renting to others, etc. A suite is counted as one room. The number of rooms includes rooms in temporarily closed hotels (due to renovations or seasonal reasons), as well as rooms in hotels temporarily closed due to low profitability resulting from the security situation beginning in October 2000. Not included are rooms in hotels which were transformed into immigrant absorption centres. Beds: Beds permanently provided in hotels in the previously mentioned rooms. Double beds are counted as two beds. Excluded are cribs and temporary beds for children. Guest: A person (including a child) booking into a hotel and spending at least one night at the hotel (including persons exempted from payment). A guest who left the hotel and booking into it for a second time (even within the same month) is counted as two guests. Tourist: A person who registers at the hotel with a foreign passport, including foreign workers and diplomats. Israeli: A person who registers at the hotel with an Israeli identity card; including new immigrants and potential immigrants, (excluding temporary residents with foreign passports) as well as guests from Judea, Samaria and the Gaza Area. Actual person-nights: includes all person-nights in the hotels. Includes person-nights of new immigrants in hotels rented by the Jewish Agency for a period of less than one year, except person-nights spent in owned apartments not rented to others. One night spent by a single guest in a room with two beds or in a suite is counted as one person-night. Potential person-nights (beds): The number of beds (as defined above) multiplied by the number of nights the hotel was open during the month reported. Percentage bed-occupancy: total actual person-nights, expressed as a percentage of the total potential person-nights in hotels, during the period reported. Potential rooms: the number of rooms (as defined above), multiplied by the number of nights the hotel was open during the month reported. Percentage room occupancy: Total rooms occupied, expressed as a percentage of total potential rooms available at hotels, during the period reported.

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REVENUE, EMPLOYMENT AND WAGES Tourist Hotels Previous sample Until the end of 1988 the data were obtained by means of a sample of recommended tourist hotels, which was produced in the seventies. The data processed on the basis of this sample were acceptable at a national level, but details by tourist locality were not available. New sample because of the change to the new rating of hotels, their dynamic development and the need for information according to locality, it was decided to draw a "new sample" which would make this information available in the necessary detail. All hotels graded 5 star deluxe, 5 star and 4 star, and hotels with 100 or more rooms were certainty included. The rest of the hotels were selected for the sample on a probability basis, based on each hotel's grade and number of rooms. Accordingly, processing of the sample for the overall population was based on the grade of the hotel. Beginning with data from early 1989, the data are obtained on the basis of the new sample.1 Due to the abolition of hotel grading,2 and the changeover to processing the sample data for the overall population as based on level of hotel,3 slight changes in the data were obtained: on the national level of about 1%. At the locality level higher differences were obtained in some localities. In order to obtain a continuity and to facilitate analysis of data according to levels, data were reprocessed on the basis of hotel level, as from January 1991. For the reader's convenience, the data for 1991 were presented twice, beginning with Quarterly No. 3, 1993 and until Quarterly No. 4, 1994. 1991 * processing by grade 1991 ** processing by level As of this quarterly, No. 1, 1995, data for 1991 are presented according to the processing based on level of hotel. Addition to sample - Not Yet Listed Hotels Starting in the last quarter of 1994, the sample used for collecting data on employed persons, wages and revenue was expended to include hotels not yet listed as "tourist hotels" (see explanation above)4. It should be clarified that the ratio of total revenue can not be relied upon for the last quarter of 1994 between the data based on the expanded sample and the data based on the original sample (tourist hotels only), for estimating data for the earlier period. This is because the activities of not yet listed hotels are weighted differently for different periods. However, an

2 3 4

In order to understand the changes obtained from the exchange of the samples, the December 1988 data were processed according to both the previous sample and the new sample. These data were published up to Quarterly No. 1, 1991. Data according to grades up to May 1992 were published up to Quarterly No. 1,1993. See "Classification of Hotels by Level", above. Data until the end of 1994, which relate to tourist hotels only, and data in the last quarter of 1994, which relate to the expanded sample, are presented up to Quarterly No. 1, 2000.
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estimate of data can be obtained for the previous period, which relates to the expanded sample, by using the data on person-nights and the ratio of average revenue per person-night at each level. It should be noted that since the data are based on a sample, which is based on the inflation method also on national data on averages per room, may be slightly inaccurate. Thus, for example, Data show that for Haifa, there were no not yet listed hotels in the surveyed period:

From Tourist Hotels 1994 X XI XII 7,140 6,569 6,195

From Tourist Hotels and Not Yet Listed Hotels 7,139 6,575 6,203

Jobs (formerly: Employed persons): Employees and proprietors and members of their families working at the hotel without pay (In hotels in kibbutzim it includes also posts held by kibbutzim members and volunteers working without pay, classified as proprietors and family members). Excludes workers employed by personnel agencies. Employee jobs (formerly: Employees): Persons who worked in a hotel for at least one day in the month and received wages, including part-time employees and proprietors and shareholders drawing a wage or salary from the hotel. Wages: the sums appearing on the pay-rolls for the reported month, and on which income tax is due, including basic wage, overtime, various taxable allowances such as: cost of living allowance, seniority, education allowance, fares, convalescence allowance, maintenance of vehicle (excluding insurance and license) telephone maintenance, payment for clothing, 13th month salary, premiums, bonuses etc., and also payments in kind (such as housing), which require payment of income tax and service charges (whether paid directly by the employer, or distributed directly among the employees from a common pool). Excluded are sums paid to the employee, on which the employee does not have to pay income tax, such as: food and lodging allowances, meals allowance on which the employee does not pay tax, compensation payments, pension and services charges not paid by the employer or not distributed from a common pool. Other labour expenses paid by the employer (social security) are also excluded. Kibbutz members and volunteers who work in hotels in kibbutzim and moshavim are defined, as mentioned above, as proprietors and family members. Thus, wages are not imputed for them. Revenue: includes gross revenue (including value added tax1) from person-nights (including person-nights in rooms rented by the hotel in private homes), from renting rooms for a long period. It also includes revenue from other services which are not person-nights, such as: organizing parties and renting halls, stay during the day without spending the night, deposits for canceled rooms, meals, drinks, bars, night clubs, swimming pools, laundry, rentals of

Since November 1985, VAT on revenue from hotels in Elat, which became a Free Trade Zone, has been rescinded. The distinction between revenue from tourists and from Israelis is made based on the definition “ revenue from tourists is exempt from VAT and revenue from Israelis is due VAT at a zero rate”.
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shops etc. It also includes payments received from the workers (for meals, housing, etc.). Incentives are not included.1 Revenue from tourists: Revenue from accommodation and other services of "tourists" who do not pay value-added tax (excluded revenue from tourists not staying at the hotel, who pay value-added tax for other services at the hotel). Revenue from Israelis: The difference between the total revenue and the revenue from tourists as defined above. Revenue from Israelis includes revenue from lodging and services for Israeli guests, revenue from events and rental of areas as well as revenue from tourists on which VAT was paid. The revenue from tourist in U.S. dollars and the average revenue for person-nights in U.S. dollars are calculated from the revenue reported in NIS, or other currencies, at the average representative exchange rate for the month. The data on rooms and person-nights, used for the calculation of derived data (revenue per room and per person-night) are sample data and are not data obtained from the census. Other hotels As of I/1997 other hotels are also investigated on revenue, employment and wages (see definitions above). Data are based on the new sample of these hotels. See explanation above. 2. RURAL TOURISM IN KIBBUTZIM AND COLLECTIVE MOSHAVIM In 1996, this market sector was investigated for the first time. Population: All other accommodations that exist in kibbutzim and collective moshavim, which are not investigated within the framework of other series. The population includes: individual accommodation units (rooms, apartments), hostels, camping grounds, “Seminar Centers”, etc. It does not include: guesthouses listed as tourist hotels (see above), youth hostels affiliated with the youth hostel association or field schools located on kibbutzim (see below). Percent Bed Occupancy: See above definition under “Hotels”. Revenue: Total revenue obtained from guests who spend the night (for accommodation and other services such as: meals, use of facilities, etc.), incl. VAT. 3. PRIVATE RURAL TOURISM From the beginning of 2005, this market sector was investigated for the first time. Population: All rural accommodations in rural villages except those in kibbutzim and collective moshavim. Percent Bed Occupancy: See above definition under “Hotels”. Revenue: Total revenue obtained from guests who spend the night (for accommodation and other services such as: meals, use of facilities, etc.), incl. VAT.


The hotels received compensation from the exchange rate insurance since 1981. On 25.7.93, this compensation was discontinued. A table that presents the outline of the annual receipts was presented in the quarterlies from 1/1995 and until 2/1998.
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4. YOUTH HOSTELS Youth hostels affiliated with the Youth Hostels Association, (among them, one in the Ezyon Region). 5. FIELD SCHOOLS Field schools which belong to Society for the Protection of Nature run a number of programs - instruction of participants in excursions, activities with the population in the immediate neighborhood, Research of the region and activities for the preservation of nature and environment. Field schools run also youth hostels. 6. NATIONAL PARKS AND NATURE RESERVES Data are received from the Authority.

SEASONAL ADJUSTMENT AND CALCULATION OF TRENDS1 The seasonal adjustment method is based on the use of moving averages to estimate seasonal factors, for each month. The seasonally adjusted series is calculated by using the Statistics Canada X-12-ARIMA2 Seasonal Adjustment Method and by a procedure developed in the Central Bureau of Statistics for simultaneous estimation of factors for prior adjustment of Festivals (Passover, Easter, and the Jewish New Year) and Trading Day effects in Israel3. Prior adjustment of the effects of festivals and of Trading Day is implemented for most series on a monthly basis before seasonal adjustment. The seasonally adjusted series is calculated by dividing the original series both by the seasonal factors and by the prior adjustment factors when applicable. The seasonally adjusted series is the first estimate of the trend and includes irregular fluctuations. As of April 1992, the method of Concurrent Seasonal Adjustment is applied, i.e., the seasonally adjusted series is calculated each month, on the basis of the most updated original data. In the series "tourist arrivals by air", seasonal adjustment is applied to the aggregate series as well as to 12 main sub-series separately (arrivals by country of residence). In the series "person-nights at tourist hotels", the aggregate data (total and by localities) is calculated by summing up the seasonally adjusted data of the two sub-series (person-nights of tourists and person-nights of Israelis). The trend is estimated by an improved method, which is based on Henderson’s method and on an additional process3.


2 3

The seasonally adjusted series and trends were calculated and the trend breaks were dealt with under the supervision of the Statistical Analysis Sector of the Central Bureau of Statistics. U.S. Census Bureau - The X-12-ARIMA Seasonal Adjustment Method. A detailed explanation of the method of seasonal adjustment and calculation of trend was published in the Seasonal and Prior Adjustment Factors for 2007, Trends for 2003-2007 – on the CBS internet site:

A trend break in the series: As of October 2000 (due to the security situation in Israel) and again as of July 2006 (due to the Second Lebanese War) the original data recorded in the series of incoming tourism (total and by country) and tourist person-nights in hotels (total and by locality) were extremely irregular. Mainly, abrupt changes in the levels of original data, i.e., trend breaks in the series were detected. Therefore, calculation of seasonally adjusted data and trend data were carried out after adjusting the data up to September 2000 and June 2006, respectively, to the low levels received during the first months of each crisis.

EXPLANATORY NOTES Symbols Used: Blank .. 0 * R () NIS = irrelevant as a result of the table’s structure = no cases = unknown or not for publication = a value smaller than half the unit by which data are presented in the table = provisional data = revised or corrected data = data based on estimate or of high relative sampling error = New Israeli Sheqel

Details do not necessarily add up to totals because of rounding.

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