This report reviews the national tourism development budget and its allocations for Arab communities. In 2000 the tourism development budget for Arab communities was in 2000 NIS13.5 million, in 2001 this budget dropped to NIS 10.6 million and in 2002 it was only NIS 4.4 million. The tourism development budget, it is argued, determines the extent to which residents of a given region or sector can have access to tourism revenues and utilize it to their benefit. The drop in investment in infrastructure development in Arab towns also means that residents will be less able to utilize this resource in the near future.