On its own website, Airbnb said "many in the global community have stated that companies should not be doing business here (in the occupied territories) because they believe companies should not profit on lands where people have been displaced".
An evaluation by Airbnb "concluded that we should remove listings in Israeli settlements in the occupied West Bank that are at the core of the dispute between Israelis and Palestinians".
Ideologically driven Jewish nationalists who claim all of historic Palestine have since created outposts there, pushing out Palestinian residents.
Around 400,000 Israelis live in settlements that dot the West Bank and range in size from tiny hamlets to large towns, in addition to 200,000 living in settlements in occupied east Jerusalem.
"We are also examining the possibility of imposing taxation on the company so that it will bear a heavy price for the decision", Levin added.
Israeli Tourism Minister Yariv Levin called Airbnb's move "discriminatory" and ordered his ministry to formulate a retaliatory plan to "limit the company's activities" in Israel, adding that the country would back settlement listers' lawsuits in both Israeli and U.S. courts. Human Rights Watch says it has been urging Airbnb to leave the controversial region for two years.
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He noted that Sarah Huckabee Sanders offered two differing justifications for revoking the "hard pass" credentials from Acosta. However, he said that "I must apply the precedent of this circuit as I see it".
Israeli leaders slammed the decision and called on Airbnb to reverse it.
Israel denounced Airbnb's decision on Monday.
Moreover, Airbnb still allows for listings in other disputed territories, including some where inhabitants have been subjected to ethnic cleansing.
Erdan said Airbnb "will have to explain why it is taking this discriminatory and racist line here in particular and not in other conflict zones in the world".
In a 2016 report, HRW found that while the Israeli government is responsible for settlement policies, businesses that choose to locate and expand in the settlements "contribute to Israel's rights violations".
Airbnb announced its move on its blogpost, saying it had struggled with the decision for a while and had spoken to experts on both sides of the debate.
Human Rights Watch said the Airbnb move came on the eve of its publication of a 65-page report it has carried out into tourist rental listings in settlements, including by Airbnb. Tourism Minister Yariv Levin called the move a "surrender to a boycott" and said he would seek to have an additional tax imposed on Airbnb's activities in Israel.
The company acknowledged in their statement this week that the question of whether or not to facilitate the conduction of business in the illegal settlements which lie over the green line has been a concern in recent years.