With Bethlehem and Jerusalem 2000 celebrations looming and the revenue that both sides stand to gain, the comparison puts reality vividly into perspective. And yet, despite the general decline in the sector, tourism revenues did increase between 1991 to 1996, notably in East Jerusalem. The first and most prominent problem that financial institutions have cited frequently over the past few years, is the ongoing uncertainty surrounding the legislative and regulatory framework that prevails in Palestine. Jordanian laws, which still prevail in Palestine today, do contain the necessary clauses that give banks the security and enforcement mechanisms that they require to extend either personal or corporate loans. Palestinian law enforcement agencies seem to have been singularly ineffective.
Banks often find themselves having to chase after delinquent accounts.
Hence, much unregistered land that could be used to give banks the security they need, and potential clients the capital they demand, is not being fully exploited. Indeed, we already have a number of domestic tourism projects in our portfolio. The problem with funding projects that target international tourists is that the majority are located in Jerusalem, where commercial finance is highly complicated. East Jerusalem is the heart of the Palestinian tourism industry, due to the strong presence of Palestinian hotels, tour operators and transportation providers, in the city. But the issue of using the city's real estate as collateral is politically charged.