A rocket has landed in the Israeli holiday resort town of Eilat as tourists descend on it to celebrate Pesach.

No injuries were reported after the shell, fired from the direction of Egypt, exploded in the early hours of Thursday morning. The Grad rocket landed on a building site about 300 metres from a residential building.

"Eilat residents heard three explosions in the night, but for the moment we have only found one rocket," said police spokesman Micky Rosenfeld.

The Red Sea port resort has been put on high alert by police, who are searching the area for further rockets.

Eilat, which is on the Egyptian border, was targeted by militants last summer. Eight Israelis were killed after their vehicles were ambushed by gunmen who had come from the Sinai desert.

A Jordanian and three others were injured in August 2010 when five rockets were sent into Eilat area in the last rocket attack on Eilat.