Human Rights Watch in particular has campaigned for Airbnb to take this step. Moreover, Airbnb still allows for listings in other disputed territories, including some where inhabitants have been subjected to ethnic cleansing.
"Palestinians on the ground spoke out about how Airbnb was affecting them by supporting settlements, and as worldwide solidarity activists, we took to the streets, used social and traditional media and disrupted Airbnb events across the United States - all to have our voices heard that Palestinians deserve to live with freedom, dignity and equality", Gold said.
Even Israeli authorities have deemed illegal some of the unauthorised outposts where Airbnb accommodations can be found.
The company said settlements were at "the core of the dispute between Israelis and Palestinians".
Palestine Legal, a Palestinian rights group that monitors USA anti-boycott legislation, said on its website that some of the laws enacted at U.S. state level apply both to Israel and "territories controlled by Israel", an allusion to areas such as the West Bank. "Kudos", she wrote on Twitter, adding that the decision came on the eve of the release of a HRW report into "human rights harms of #Airbnb business in settlements".
Saeb Erekat, the PLO's secretary general, said Airbnb's decision was "an initial positive step".
Some 600,000 Israelis live in illegal settlements - many built on privately-owned Palestinian land - scattered across the West Bank and occupied East Jerusalem, on land that Palestinians want for a future state.
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Levin has stated that the Ministry of Tourism is taking action to "limit the company's activity throughout the country".
"We are most certainly not the experts when it comes to the historical disputes in this region".
"It follows decisions not to invest funds in, among others, the fossil fuel industry, arms companies, apartheid South Africa, and - going even further back - the transatlantic slave trade", the statement said.
"We reiterate our call upon the UN Human Rights Council to release the database of companies profiting from the Israeli colonial occupation".
"National conflict [sic] exist throughout the world and Airbnb will need to explain why they chose a racist political stance against some Israeli citizens", Erdan said, as reported by Haaretz.
Palestinian activists and proponents of the Boycott, Divestment, and Sanctions (BDS) movement have long lobbied Airbnb to end its work in the Jewish-only settlements, which are illegal under global law.
"International companies are interested in doing business with the State of Israel, but are unwilling to accept the continued military control of millions of Palestinians", the group said.