Travel Spending Leads This Week’s Jump in Israeli Card Transactions

Israel’s tourism and travel sector recorded the sharpest weekly rise in revenue volume, according to the Phoenix Gamma index that tracks retail activity through credit card spending. The sector’s turnover increased 14% from the previous week, the number of transactions rose 7%, and the average purchase value climbed 6%. The article says many Israelis appear to be booking summer and holiday trips, and that this is not a coincidence.

The main reasons given for the surge are the ceasefire with Iran and a relatively weak US dollar, which makes vacations cheaper. The report also points to the heavy wave of credit card marketing around flights, travel cashback offers and similar promotions, describing it as part of a battle for Israeli consumers’ wallets.

Fashion and footwear posted the second-largest increase of the week, with a 7% rise in turnover driven by the same growth in transaction volume. Most of that gain came online, where spending jumped 20%, compared with a 4% increase in shopping malls and 2% in open-air retail centers and street stores.

The data line up with summer discount campaigns from fashion chains, including Castro’s up to 50% off on swimwear and summer clothing, Terminal X’s 30% off swimwear and 25% off short sportswear, Golf’s 60% discount on purchases of two items or more, and Hoodies’ Birthday Sale with 19% off plus larger discounts on selected items. Nadav Lahmni, CEO of Control at Phoenix Gamma, said that “the arrival of summer, together with the ceasefire agreement and World Cup celebrations, caused the public to go out, have fun and shop, thereby increasing credit card turnover.” He added, “If the calm toward Iran continues, the tourism sector will be the main beneficiary.”