As the General Assembly 2005 of the Church of Scotland continues, the controversial issue regarding the investment into a luxury hotel in Israel is being put forward for debate. However, the General Assembly has been seen as being bitterly divided between opposite opinions and emotional criticisms.

The hotel project commenced in 1999, and since then the Board has spent over £10m in converting a former Kirk hospital at Tiberias in Israel into a luxury hotel in an attempt to enhance the dialogue between Jews and Arabs. However, due to political and social instability in Israel, the hotel finally opened in October 2004 after a number of long delays.

The concern over the investment project in the Holy Land was raised in last year’s General Assembly. The Church reported that the budget of the Board of World Mission will have to be cut down by £426,000 as part of overall savings of more than £800,000. Many have attributed the cash crisis to the Israeli investment failure.

A new report to the General Assembly 2005 from the Board of World Mission shows that the Israeli hotel development project will drain the Kirk of a further £555,000 by the end of this year. This will include £380,000 unpaid interest on a loan made by the board to the resort, and £175,000 in trading losses for this year alone.

The hotel's current financial situation was poor, as quoted the report, "The stark reality is that the day-to-day operating costs are considerable, and with the highly competitive tourist market which exists at present, the return is not as it was when the decision to proceed with development was taken.

"The level of income to the hotel from usage by local churches and pilgrim groups is low. Such groups undertake visits in a highly competitive market and even if the hotel is filled with such it would not break even in financial terms."

There is a growing row among the missionaries, criticising that the project hampers the world mission. In fact, a dozen overseas posts have already been cut over the last year including funding for HIV/AIDS workers in Africa.

However, the Convenor of the influential Board of World Mission, Rev Alan Greig, has been endlessly defending the project to the General Assembly. He said that there was no way that the Church could sell off the £10m development, according to the Scotsman newspaper. He even described that selling the hotel would be "treacherous" and an "act of betrayal" towards Christians in Israel.

Rev Greig expressed that he is proud of the hotel project in Tiberias despite there are so many difficulties. He was quoted by the Scotsman, "The Kirk has held its nerve and has shown solidarity with its Christian partners in Israel and Palestine at a time when they feel extremely vulnerable and under threat."

"With the opening of the Scots Hotel, St Andrews, Galilee, there remains a credible Christian presence and witness in Tiberias. I would strongly encourage ministers and church members, including all of us here, to get behind the project and visit it."

"We have an excellent, committed multi-faith staff team working at Tiberias, but they are saddened and perplexed to hear of the continuing criticism in Scotland of the project," he continued. "Surely now is the time to save the project from a self-fulfilling prophesy of failure when there are tremendous signs of encouragement from outwith Scotland."

Rev Greig pleaded for unity within the Church over the issue and encouragement for this project. He echoed the comments by the Moderator of the General Assembly Rev David Lacy, who said, "It is our centre and the criticism should stop now and support should begin."

Rizek Abusharr, an elder from the Presbytery of Jerusalem, also pleaded for the unity. He spoke of the effects abandoning the project would have to the Scotsman.

"Could the convener make the assembly aware of the pain that would be caused to the Christian church as a whole and in Israel and Palestine, if the Tiberias centre was to be sold out of Church hands," he gave emotional comments. "Some of the Christians out there believe that it is treacherous of the Church to dispose of the property in the land and cradle of its faith."

Abusharr added that at present it is far too early to let go of the project, believing that it does have "tremendous potential and gives the Church of Scotland a very good deal of publicity".

The board's report on the Tiberias Project was passed successfully by the General Assembly.