The Scots Hotel in Tiberias has received a major vote of confidence from the Church of Scotland's World Mission Council.

This week, the council agreed to move forward with an expansion of the Kirk-owned facility, set to involve construction of a new spa and gymnasium and, most importantly, a new church building.

From its opening in June 2004, the Scots Hotel with its local management team has developed its reputation both within and outwith Israel as a facility offering a high level of hospitality and service within a Christian setting.

Situated as it is within the Galilee, by the Sea of Galilee, both a major holiday destination for local Israelis and a base for Christian pilgrims exploring their faith in the Land of Jesus, the hotel continues the tradition and history of the Church's previous use of the site as being a place of welcome for all, regardless of ethnicity or creed.

Positive progress is being made by the hotel in respect of its two major objectives, one relating to its mission and service to the Christian community, both within and outwith Israel and Palestine, and the other in respect of its financial viability.

Despite a net operating loss of $445,000 in 2005, the hotel experienced a net operating surplus of $615,000 in 2006, notwithstanding the closure of the hotel in August due to the Second Lebanon War. This positive trend has continued in 2007.

In the highly competitive market in which the hotel operates, despite the positive outcomes, the council recognises the need to ensure that the hotel has the ability to realise its full potential, thereby protecting its unique market position.

To that end the council has taken the decision, subject to the availability of funding and further procedural approvals, to take a step towards the completion of the hotel project as originally envisaged in 1999 with the construction of a new church, a spa with gymnasium and additional car parking facilities.

Careful background research, over a 15 month period, has been undertaken in order to test the viability of this further development before council could take the decision to proceed, a decision strengthened by the incorporation of a robust management process drawing on the experience of the first phase of the hotel development.