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During and immediately following major terrorist incidents, Israeli tour operators typically estimate a cancellation rate as high as 70 percent. Hotel industry officials expected the overall decline in visitors to reach 30 percent by the end of 1986, mainly because of reduced US tourist arrivals. The number of American tourists visiting Israel dropped by 47 percent in the first eight months of 1986—the latest available figures compared with the same period in 1985.

(b)(3)

Cruise ship tourism appears to have been particularly hard hit by the Achille Lauro hijacking. During the first eight months of 1986, total cruise ship arrivals were down over 48 percent from the same period in 1985. The most severe drop-a 64-percent decline in the first quarter of 1986 as compared with the same period in 1985—wa; number of American tourists coming to Israel via cruise ships.

(b)(3)

(b)(1) (b)(3)

Kuwait

(b)(1)

(b)(3) Shia Terrorists Arrested for Oil Installations Bombings Kuwaiti authorities arrested 11 suspects on 19 January for the bombings of oil installations in June 1986 and January 1987.

the suspects were in possession of arms and explosives. The arms caches included Israeli, US, and Soviet arms, silencers, handgrenades, dynamite sticks, machineguns, ammunition, and timing devices for bombs. Five more suspects are still being sought. Virtually all the suspects are Kuwaiti Shia, some from the country's most prominent families and with ethnic ties to Iran.

(b)(3)

Kuwaiti officials have long suspected that local terrorists, backed by Iran, were responsible for the five explosions that seriously damaged oil facilities in June 1986 and for the series of smaller blasts timed to disrupt the Islamic Summit conference held in Kuwait in late January. According to the Embassy, Kuwaiti authorities broke the terrorist ring shortly before the summit started but withheld news of the arrests and the arms caches until the foreign delegations and journalists had left the country. The Embassy also says there are unconfirmed reports that several police were wounded in a shootout with the terrorists. (b) (3)

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Approved for Release: 2017/09/13 C05922883