Looking for cheap electronics? Soon, no need to go to Eilat

The Israel Airports Authority (IAA) has launched its first tender for opening a store selling mobile phones and electronics products without VAT at Ramon Airport. A study conducted for the IAA indicates that about a quarter of all mobile phones sold in Israel are sold in Eilat, with a total turnover of approximately NIS 1.5B. The IAA clarified that the store will be open to all passengers arriving in Eilat by plane or car and will allow them to purchase the devices before arriving in Eilat.

The city of Eilat is a popular destination for Israelis who wish to purchase mobile phones or various electrical devices and enjoy the zero VAT rate that applies there. The IAA estimates that this will become even more attractive in light of the expected VAT increase starting next year. According to a study conducted by the consulting company BDO for the IAA, about 25% of all mobile phones sold in Israel are sold in Eilat.

The annual sales turnover of mobile phones in the city is estimated at about NIS 1.5B, in addition to sales of other popular electronic products such as smartwatches and vacuum cleaners. Ramon Airport, located about 19 kilometers from Eilat, also enjoys a zero VAT rate.

Each year, about one million passengers pass through Ramon Airport, on both domestic and international flights. As part of the store's operation, the winner of the tender will be able to sell a wide variety of electronics and mobile products, including mobile phones, tablets, various types of headphones, vacuum cleaners including robotic vacuums, smartwatches, gaming products, and accessories.

The designated store will be located in the public hall of the airport and will be accessible to all passengers. Additionally, it will be possible to pre-order a device and simply collect it from Ramon. The contract, according to the tender conditions, will last for three years with an option for an additional 36 months.