Tourist Numbers Plummet in Israel, But Foreign Spending Declines Less Sharply

Despite a dramatic drop in the number of tourists visiting Israel, overall spending by foreigners using credit cards has shown a surprising resilience, according to data from the Shva company, which manages the national automated banking services. In the first half of 2026, foreign credit card spending in Israel reached NIS 9.7 billion, a decrease of only 7.8% compared to the NIS 10.5 billion spent in the first half of 2023.

This contrasts sharply with the number of actual tourists, which plummeted by approximately 78%. The Ministry of Tourism reported around 430,000 tourist entries in the first half of 2026, a significant fall from the 1.97 million entries recorded in the same period in 2023. This indicates a substantial decline in physical visitor numbers.

The discrepancy is explained by shifts in spending patterns. Traditional tourism sectors, such as hotels and restaurants, saw significant drops in spending by 43.9% and 36.5% respectively. Duty-free purchases also fell by 52.8%. However, spending in non-traditional sectors like delis, butcher shops, and bakeries surged by 52.4%.

Shva suggests this surge may reflect ongoing consumption by individuals residing in Israel rather than tourists, or bulk food purchases by organizations for communities affected by the ongoing conflict. Online purchases using foreign cards increased by about 1%, while physical purchases decreased by roughly 18%. This rise in online spending is partly attributed to Jewish organizations purchasing supplies for affected communities in Israel remotely, transactions that are categorized as tourist spending.

Inflation, estimated at nearly 10% during this period, also contributes to the smaller reported decrease in spending. Furthermore, a demographic shift among those present in Israel, with an increase in immigrants from Western countries who may use foreign payment methods for daily living, could also be a factor. The presence of diplomats, journalists, and international aid workers may also inflate foreign credit card transaction volumes, masking the struggles of core tourism businesses.