Israel Sees Paradox: Tourist Numbers Plummet, Card Spending Recovers

Despite a dramatic 78% drop in official tourist arrivals in the first half of 2026 compared to pre-war 2023, spending by foreigners using international bank cards has nearly returned to pre-war levels. Data from SHVA, the national payment systems operator, reveals a significant disconnect between traditional tourism statistics and actual financial turnover.

Official figures show that foreigners spent 9.7 billion shekels on goods and services with foreign cards in the first half of 2026, a mere 7.8% decrease from the 10.5 billion shekels spent in the same period of 2023. In contrast, the Ministry of Tourism reported only about 430,000 foreign visitors during the first six months of 2026, a stark decline from nearly two million in the first half of 2023.

The decline in traditional tourism sectors is substantial. Hotel and accommodation spending fell by 43.9%, restaurant and cafe expenditures dropped by 36.5%, and duty-free shop sales decreased by over 52%. Overall spending in five key traditional tourism areas, including car rentals and travel agencies, plummeted by more than 40%, from 4.3 billion to 2.62 billion shekels.

Analysts attribute this spending paradox to several factors. Increased online purchases using foreign cards, including equipment bought by international Jewish organizations for aid, are one reason. Another is a significant rise in everyday spending, particularly in grocery stores and bakeries, up 52.4%. This is linked to the expenses of new immigrants from Western countries, diplomats, humanitarian mission staff, and journalists. Additionally, inflation nearing 10% means that current spending figures represent a smaller volume of goods and services than before.