Israel's Tourism Sector Sees Signs of Recovery, Aims for 10 Million Visitors
Israel's tourism industry is showing early signs of recovery, though it remains significantly below pre-pandemic and pre-war levels. In August 2026, the country welcomed 115,900 tourists, a figure similar to the previous year, while hotel stays in the first seven months of the year were down 7% compared to 2025. Lior Raviv, CEO of the Isrotel hotel chain, expressed optimism, noting strong domestic demand and the initial return of foreign visitors. He believes Israel could eventually attract 10 million tourists annually, a substantial increase from the peak of over five million in 2018-2019, provided security conditions improve.
Raviv highlighted Isrotel's ongoing development, with 27 hotels in Israel and plans to expand to 35 within three years, including new properties in Tel Aviv, Jerusalem, and the north. The company is also expanding internationally, with four hotels in Athens and two under construction in Rome. He emphasized the robust and stable demand from Israelis, noting a million members in their loyalty club, 'Hug Ha'Shemesh'.
Regarding international tourism, Raviv sees a gradual return, driven by increased flights from the US and Europe. He anticipates ending 2026 with approximately one million tourists. The US remains the primary market, encompassing pilgrims, delegations, and business travelers, particularly from the tech sector. The European market, including the UK, Germany, and France, is also crucial, though Eastern European markets have weakened. Raviv expressed a strong desire for the return of Russian and Russian-speaking tourists, who previously constituted Israel's second-largest market after the US.
Raviv acknowledged that Israel faces challenges in attracting tourists due to its complex security and political image, citing ongoing regional tensions. He stressed the need for a coordinated marketing campaign by the Ministry of Tourism, focusing on specific markets and tailored messaging. He also called for efforts from municipal authorities in Tel Aviv and Jerusalem to promote their cities.
Isrotel is investing heavily in marketing and is optimistic about a significant rebound in tourism by the second quarter of 2027, returning to pre-pandemic levels. Raviv believes that returning tourists become ambassadors for Israel, experiencing its diverse attractions and vibrant culture firsthand. He noted that while Rome attracts 35-40 million tourists annually, Israel, with its unique historical and religious sites, has the potential to significantly increase its current numbers.
