Tel Aviv One of World's Most Popular Gay Destinations Thanks to Marketing Campaign

Now, thanks to its balmy climate, vibrant nightlife and a creative government-backed branding campaign, the city has become one of the world's top gay tourist destinations.

As always in the Middle East, however, conflict is never far away, and some critics have accused Israel of using such tolerance as a way to divert attention from alleged transgressions against Palestinians.

Tel Aviv devotes about $US100,000 ($A95,753) - more than a third of its international marketing budget - to drawing gay tourists. Though no exact figures exist, officials estimate that tens of thousands of gay tourists from abroad arrive annually.

"We are trying to create a model for openness, pluralism, tolerance,'' Tel Aviv Mayor Ron Huldai told The Associated Press.

"Live and let live - this is the city of Tel Aviv.''

The city's first openly gay-owned hotel was opened recently and numerous city-backed travel sites direct gay visitors to the hottest clubs, bars and resorts in town.

"We've long recognised the economic potential of the gay community. The gay tourist is a quality tourist, who spends money and sets trends,'' said Pini Shani, a Tourism Ministry official who has been involved in the campaign.

"There's also no doubt that a tourist who's had a positive experience here is of PR value. If he leaves satisfied, he becomes an Israeli ambassador of good will.''

That's exactly what Israel's opponents fear. They derisively call the embrace of gay culture "pinkwashing'' - a conscious attempt to play down what they call violations of Palestinian human rights by Israel behind an image of tolerance.

Human rights groups accuse Israel of various violations against Palestinians, such as arresting minors, demolishing Palestinian homes built without permits, seizing Palestinian land in the West Bank, detaining Palestinians for months without charge, and failing to prosecute soldiers for wrongdoing in Palestinian areas. Israel says it respects human rights and that its practices in the Palestinian areas are solely due to security concerns.

Tel Aviv has in fact become a haven for homosexual Palestinians, who can face ostracism or persecution at home in the West Bank, as well as ultra-Orthodox Jews, who escaped their repressive homes for the freedom of the big city.

Behind its image of a society struggling with religious coercion and the constant threat of war, Israel is one of the world's most progressive countries in terms of gay rights.

Gays serve openly in Israel's military and parliament, and the Supreme Court has granted gays a variety of family rights such as inheritance and survivors' benefits.

Israel is the first country to feature a same-sex duo on its version of the television competition Dancing with the Stars and gays, lesbians and even a transsexual are among the country's most popular musicians and actors.

Tel Aviv holds a festive annual gay parade, rainbow flags are often seen flying from apartment windows and it has a community centre for gays.