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DEFINITIONS AND EXPLANATIONS

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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.
    4.       A superfluous click on the “enter” key creates duplicate files.




1
    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.


                                                   - XI -
              TABLE A.- LOGICAL CHECKS FOR DUPLICATE RECORDS, 2004

    Month          Data published     Data adjusted       Difference       Percentage of
                                      for duplicates                           error
     Total                1,505,606          1,436,970           -68,636               -4.6
       I                     94,027              90,132           -3,895               -4.1
       II                    97,540              94,964           -2,576               -2.6
       III                  106,192             103,234           -2,958               -2.8
       IV                   141,559             135,837           -5,722               -4.0
       V                    118,326             112,421           -5,905               -5.0
       VI                   121,702             114,732           -6,970               -5.7
      VII                   147,901             140,134           -7,767               -5.3
      VIII                  176,910             167,230           -9,680               -5.5
       IX                   122,159             116,886           -5,273               -4.3
       X                    128,432             122,167           -6,265               -4.9
       XI                   110,430             106,308           -4,122               -3.7
      XII                   140,428             132,925           -7,503               -5.3



              TABLE B.- LOGICAL CHECKS FOR DUPLICATE RECORDS, 2005

    Month          Published data     Data adjusted       Difference       Percentage of
                                      for duplicates                           error
     Total                1,902,787          1,879,170           -23,530               -1.2
       I                    115,034             113,117           -1,983               -1.7
       II                   110,887             109,854           -1,046               -0.9
       III                  146,784             145,581           -1,219               -0.8
       IV                   162,639             165,703            3,103               1.9
       V                    171,887             167,471           -4,429               -2.6
       VI                   157,315             159,349            2,049               1.3
      VII                   199,145             196,402           -2,698               -1.4
      VIII                  193,718             188,432           -5,268               -2.7
       IX                   156,807             152,626           -4,174               -2.7
       X                    162,748             160,631           -2,067               -1.3
       XI                   163,292             162,483             -817               -0.5
      XII                   162,531             157,521           -4,979               -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.




                                           - XII -
                  TABLE C.- COMPARISON BY SELECTED COUNTRIES, 2004

        Country    Published data      Data adjusted           Difference        Percentage of
                                       for duplicates                                error
Austria                       11,117               11,209                   92              0.8
Italy                         41,990               41,812               -178                -0.4
Argentina                     11,734               10,136             -1,598               -13.6
United States               379,127              382,619               3,492                0.9
Belgium                       22,762               22,589               -173                -0.8
Brazil                        11,415                   9,747          -1,668               -14.6
Germany                       75,896               68,016             -7,880               -10.4
Netherlands                   40,379               36,257             -4,122               -10.2
United Kingdom              146,483              148,410               1,927                1.3
Spain                         21,396               13,671             -7,725               -36.1
France                      257,486              226,732             -30,754               -11.9
Canada                        43,571               44,187               616                 1.4
Sweden                        12,596               12,816               220                 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.


                  TABLE D.- COMPARISON BY SELECTED COUNTRIES, 2005

        Country    Published data      Data adjusted           Difference        Percentage of
                                       for duplicates                                error
Austria                       13,264               13,909               645                 4.9
Italy                         72,874               76,466              3,592                4.9
Argentina                     14,776               13,299             -1,477               -10.0
United States               457,518              477,984              20,466                4.5
Belgium                       25,523               26,502               979                 3.8
Brazil                        19,763               16,512             -3,251               -16.4
Germany                     105,224                97,240             -7,984                -7.6
Netherlands                   49,808               46,223             -3,585                -7.2
United Kingdom              156,748              164,942               8,194                5.2
Spain                         51,867               34,006            -17,861               -34.4
France                      311,438              284,032             -27,406                -8.8
Canada                        50,784               53,505              2,721                5.4
Sweden                        18,334               18,865               531                 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.




                                            - XIII -
AIR TRANSPORT
As of the 1/2011 Quarterly, the tables on air transport are not included. These tables can be
found in the Transport Statistics Quarterly.

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).




                                               - XIV -
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.




                                            - XV -
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
                                     1
1992 are published only by locality.
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.
 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.

1
    Data up to May 1992, according to grades, were published up to Quarterly No. 1, 1993.


                                                - XVI -
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.

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
                                1
on the basis of the new sample.
Due to the abolition of hotel grading,2 and the changeover to processing the sample data for
                                                  3
the overall population as based on level of hotel, 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 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

1
    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.
2
    Data according to grades up to May 1992 were published up to Quarterly No. 1,1993.
3
    See "Classification of Hotels by Level", above.
4
    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.


                                                 - XVII -
activities of not yet listed hotels are weighted differently for different periods. However, an
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:
                          TABLE E.- TOTAL REVENUE - NIS thousand
                                                             From tourist hotels and
                                  From tourist hotels
                                                               not yet listed hotels
        1994           X                  7,140                        7,139
                       XI                 6,569                        6,575
                       XII                6,195                        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
shops etc. It also includes payments received from the workers (for meals, housing, etc.).
                             2
Incentives are not included.
1
    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”.
2
    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.

                                              - XVIII -
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.

4. YOUTH HOSTELS

Youth hostels affiliated with the Youth Hostels Association, (among them, one in the Ezyon
Region).




                                             - XIX -
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
                                                                                             3
of Festivals (Passover, Easter, and the Jewish New Year) and Trading Day effects in Israel .
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.
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.


1
    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.
2
    U.S. Census Bureau - The X-12-ARIMA Seasonal Adjustment Method.
3
    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:
    http://www.cbs.gov.il/publications/tseries/seasonal07/presentatione07.pdf


                                                - XX -

				
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