Israel is the third most expensive country in the world when it comes to hotel rates. Jerusalem is the 10th costliest city in the five-star hotels category. The Hotel Price Index (HPI) is an extensive survey based on reservations in more than 140,000 hotels in major city destinations across the world. According to the report, the first half of the year recorded a 3% increase in hotel rates worldwide compared to the same period in 2010. Jerusalem's hotel rate, however, soared 30% during the same period, with an average room rate reaching £126 (roughly $195) -- bringing the capital to the 10th place in the world.