Israel Tourism Plummets 78% in First Half of 2026
Translated & summarized from Al-Shams by baba
Israel's tourism sector saw a 78% drop in tourist numbers in the first half of 2026 compared to 2023. While foreign credit card spending declined less sharply, sectors like hotels and restaurants experienced significant losses, highlighting the ongoing economic challenges for the industry.
The story in 5 lines · by baba
- Tourist arrivals in Israel fell by 78% in H1 2026 compared to H1 2023.
- Hotels and restaurants saw spending declines of 43.9% and 36.5% respectively.
- Foreign credit card transactions showed a smaller decline, influenced by non-tourist spending.
- Tourism sector recovery depends on flights, marketing, and visitor confidence.
- Pre-war tourism levels remain a significant economic challenge for Israel.
Israel experienced a significant decline in tourism during the first half of 2026, with approximately 430,000 tourists entering the country. This figure represents a nearly 78% drop compared to the 1.97 million tourists recorded during the same period in 2023, according to data from the Ministry of Tourism. The tourism sector, once a vital economic contributor, generated around 30 billion shekels annually and supported roughly 135,000 direct jobs before the war.
Despite the sharp decrease in tourist numbers, foreign credit card transactions showed a smaller decline of only 7.8%, totaling about 9.7 billion shekels in the first half of 2026 compared to the previous year. This discrepancy is partly attributed to the nature of credit card data, which may include non-tourist-related electronic purchases and transactions by individuals or entities outside Israel. Reports indicate that purchases linked to overseas Jewish organizations and electronic commerce contributed to inflating the foreign transaction figures, making them an unreliable indicator of tourism recovery.
Sectors directly reliant on tourist presence have been more severely impacted. Spending in hotels and accommodations fell by approximately 43.9%, while spending in restaurants and cafes decreased by about 36.5% in the first half of 2026 compared to 2023. Duty-free shop spending also saw a substantial drop of 52.8%, underscoring the direct effect of fewer visitors on tourism-related activities.
Industry representatives emphasize that restoring tourism requires the resumption of flight routes, increased international flights, enhanced marketing efforts, infrastructure development, and the removal of barriers to visitor entry. They believe that supporting tourism is crucial for the Israeli economy to regain lost activity and jobs. While foreign financial activity persists, the reduced number of tourists and direct spending in hospitality and dining sectors paint a more cautious picture of the industry's status, indicating that a return to pre-war tourism levels remains a significant economic challenge.
