These workers had been employed by Israeli hotels for years prior to the war, and continued to serve guests even after the events of October 7. In several of these hotels, evacuees from the south and the north were housed throughout the period, and at no point did this prevent the continued employment of Palestinian staff.
Reason for the Dismissals and the Ministry of Tourism’s Directive
The sole reason for this wave of planned dismissals is the government’s intention to replace Palestinian workers with migrant laborers from India and Sri Lanka. It was emphasized that none of the Palestinian workers were accused of any disciplinary offense or legal violation.
One documented case involves an employee at the Herods Herzliya hotel, part of the Fattal chain, who received a dismissal letter after three years of service. The company made no disciplinary claims against him and offered no criticism of his performance. The only justification cited in the dismissal letter was that, in light of Ministry of Tourism directives, his permit to enter Israel for work is expected to be revoked in the near future.
In correspondence between MAAN and the Fattal Group, it emerged that the relevant Ministry of Tourism directive refers to a circular distributed to hotels in July 2025. This circular aimed to encourage hotels to recruit migrant workers and stated explicitly that their entry was “intended to replace the allocation of Palestinian worker quotas.” The Ministry further clarified that once migrant workers enter Israel, it will no longer recommend the employment of Palestinians in the hotel sector.
Ministry Directives Unrelated to Security Considerations
It is important to note that the Ministry’s directives were issued in July 2025, at a time when the war in Gaza was still intense and forecasts predicted it would not end soon. Now, after a ceasefire was reached in October, one might have expected the government to reevaluate and reconsider these guidelines. But not under the leadership of the current Minister of Tourism, MK Haim Katz, who is driving this policy.
MAAN received information from the Civil Administration that there were no new guidelines that prevent the employment of Palestinians in Israeli hotels. It is clear from the past two years’ experience, and the assessment of Israeli Security agencies, that the employment of Palestinian hotel workers poses no threat to security whatsoever. Moreover, throughout the past two difficult and tense years, not a single disciplinary issue was recorded against any of these workers. Against this backdrop, the directive to terminate their employment appears entirely unjustified.
Hotel owners—including major companies such as Fattal—possess extensive business experience and are fully capable of managing their workforce. If hotels determined that their dedicated Palestinian workers could be safely and reliably employed throughout the past two years, the question arises: what logic drives the government to end their employment now, after a cease fire has been signed. Furthermore, whose interests does this decision fulfill? It is certainly not the logic of responding to the economic needs of employers or workers.
Another critical point that should be considered. Employing Palestinian workers – who have demonstrated loyalty and professionalism in difficult times – not only helps to support their families, but contributes to the local economy, as the Palestinian economy is part of the shekel zone. On the other hand, the wages of migrants from India and Sri Lanka, are sent back to their countries of origin, and thus help to boost the GNP of their countries.
Part of a Broader Government Policy
The layoffs sweeping the hotel industry form part of a broader effort by the Israeli government to halt the employment of Palestinian workers in Israel since October 7. The pressure placed on hotels to dismiss hundreds of employees parallels the government’s persistent refusal to allow entry to Palestinian workers who are essential to the construction sector.
Last month, MAAN published a detailed field report “Barred from their Jobs” outlining the destructive consequences of the government’s decision to block Palestinian workers from entering Israel:
