Israel Katz and Asaf Zamir, Israel ministers of finance and tourism, have announced a NIS300 million (£67 million) aid package for the domestic hotel sector.
The move comes following a meeting between the ministers and representatives of the tourism industry.
The impact of border closures on the hotel sector and the widespread furloughing of employees was discussed at the meeting.
Israel has sealed it borders to foreign arrivals – a measure that has been put in place to prevent the spread of the coronavirus since March.
As international tourists make up 50 per cent of all hotel guests in Israel, and arrivals are unlikely to begin again in coming weeks, the ministers decided to allocate a budget to assist hotels.
It is hoped the cash can also reduce future dependency on overseas tourism.
Zamir said: “The entire tourism industry is in a severe crisis due to the coronavirus pandemic and it is our job to act swiftly in order to bring it back on track and assist in its recovery.”
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