Israel Faces Economic Strain as Citizens Travel Abroad Extensively

Israel is experiencing a significant economic challenge due to a surge in its citizens traveling overseas, coupled with a sluggish inbound tourism sector. In 2025, Israelis made a record 9.4 million trips abroad, a 33% increase from the previous year, according to data from the Central Bureau of Statistics. This contrasts sharply with inbound tourism, which saw approximately 1.3 million tourists and day visitors, a 37.1% rise from 2024 but still far below pre-pandemic levels.

The financial gap between Israeli spending abroad and foreign tourist revenue widened considerably. Israelis spent 46.3 billion shekels on domestic and international travel in 2025, up from 38.3 billion in 2024. Conversely, foreign tourists spent 12.1 billion shekels in Israel, an increase from 9.2 billion the year prior.

The hotel industry is particularly affected by the lack of foreign visitors. Overnight stays in tourist hotels dropped to 21 million in 2025 from 22.5 million in 2024. This decline was primarily driven by a decrease in domestic tourism, with Israeli overnight stays falling to 17.8 million. However, foreign guests accounted for 3.1 million nights, up from 1.9 million in 2024.

Throughout 2025, 437 hotels with 57,800 rooms operated in Israel, achieving an average occupancy rate of only 53%. Total hotel revenue reached 13.7 billion shekels. The tourism sector contributes approximately 1.7% to Israel's GDP and provides employment for 3.2% of the country's workforce.

Separately, Lithuania is reportedly expanding its tourism offerings, including wellness and medical programs, with a notable increase in interest from Israeli travelers.