I have been teaching English for two years at Berlitz in Israel. And I can say, yes, there is a strong demand for English teachers. The payment is very low though and the classes are mostly big (especially at elementary and high schools) Schools are usually not willing to organise a working permit for you, so you will need to organise a permit to stay and work on your own. You have the possibility to work for elementary and high schools, international language schools etc.
If you are Jewish it is defitely worth it to contact an organisation that can help you out with tips and contacts. Check out my site for these organisations; www.jou.jouwpagina.nl
If you have a strong desire, goal, interest to be in Israel, I would go for it. But be prepared to work hard and to live off little money.

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