Foreign Credit Card Spending Masks Tourism Slump in Israel

Despite a seemingly minor 8% drop in foreign credit card spending in the first half of the year compared to pre-war 2023, amounting to approximately 9.7 billion shekels, the reality on the ground reveals a drastic 78% decrease in tourist arrivals to Israel. This significant discrepancy, as reported by "Calcalist," is attributed to a shift in who is using foreign cards and the nature of transactions.

Instead of a resurgence in traditional tourism, the inflated spending figures are bolstered by financial aid and donations from international Jewish organizations purchasing equipment for affected communities. Additionally, an increased usage of foreign credit cards by new immigrants from Western countries, diplomats, and journalists is artificially inflating the credit card transaction volume.

In contrast, traditional tourism sectors, including hotels, restaurants, car rental companies, and duty-free shops, are experiencing severe declines, with revenues falling by over 40%. The overall financial data, therefore, obscures the deep distress within the Israeli tourism industry.

Without the return of millions of international visitors, the Israeli tourism sector remains far from recovery, despite the misleading credit card spending figures.