There may be an economic global slowdown, but more and more people are travelling to Israel.

Some 3.5 million visitors will have arrived in Israel by the end of 2012, 4% more than in 2011……Total revenue from tourism in 2012 is estimated at about NIS 36 billion (US$9.25billion), 4% more than in 2011.

Compared to many places, these numbers may still be small. However this is an industry on moving forward quickly.

Historically, Israel has been associated with religious tourism. And it has always been difficult for the local industry to shake off the ‘bad news effect’, as Israel has been forced to defend itself from its immediate neighbours. That said, times are a-changing.

For years, the main composition of incoming tourism has not relied on the Jewish market. For example, Russian pilgrims have been flocking to the Holy Land.

Not to miss the opportunity, the Israeli government has been very direct about its efforts to promote changes. A press release from last month referred to grants to the value of 260 million shekels, an approval for over 1,700 new hotel rooms, and a continuation of the policy of tax incentives.

Admittedly, it has been pathetic to watch the bureaucrats drag their feet over final approving for an ‘open skies’ policy for airlines, but even that is gradually altering. There are signs of an agreement with the EU. Arkia and SAS are upping the number of flights to and from Scandinavia. There are plans to increase direct travel from places like Boston. And so the list continues.

What caught my eye today was an article detailing the opening of 12 new top class hotels this coming summer. Several are associated with international chains like the Waldorf Astoria in Jerusalem and Indigo in north Tel Aviv. If these major investments are valued at roughly half a billion shekels, add on to the list the new three-storey wing of the American Colony Hotel in East Jerusalem. This is one of the world’ premier boutique residences.

Israel’s Ministry of Tourism has set an ambitious target of 5 million tourists for 2013. Judging from the loud noise of the crowds in the centre of Jerusalem in this off-season week, this vision is not too wild a dream.