Israelis Cut Holiday Spending as More Travel Abroad
Translated & summarized from Vesty by baba
A record number of Israelis traveled abroad during the recent autumn holidays, leading to a significant drop in domestic retail sales, especially for clothing and shoe stores. Factors like a strong shekel, lower dollar exchange rates, and pent-up travel demand fueled overseas spending. Retail sales saw an average decrease of 1.6%, with some chains reporting drops of up to 10%. Unseasonably warm weather and Israelis' prior summer spending also impacted holiday purchases.
The story in 5 lines · by baba
- Record 1.23 million Israelis traveled abroad in September, a 17% increase from 2025.
- Domestic retail sales, particularly in fashion, decreased by an average of 1.6% during the holidays.
- A strengthening shekel and lower dollar exchange rate increased Israelis' purchasing power overseas.
- High demand for travel, fueled by pent-up demand and airline availability, drove the trend.
- Unseasonably warm weather and prior summer spending also contributed to reduced holiday sales.
During the recent Jewish autumn holidays, a record number of Israelis traveled abroad, leading to a noticeable decline in domestic retail sales, particularly in the fashion sector. Economic portal "Calcalist" reported on October 11 that factors such as a strengthening shekel, the return of foreign airlines, and high demand for overseas travel contributed to the exodus.
Despite high airfare prices, airport congestion, and warnings about travel disruptions, Israelis were eager to travel for the holiday break. The strengthening shekel increased their purchasing power abroad, while a weaker dollar partially offset flight costs. This trend resulted in reduced sales for Israeli retailers, especially clothing and shoe stores, as many Israelis combined leisure with shopping overseas, taking advantage of lower prices in Europe.
Data from the Central Bureau of Statistics revealed that 1.23 million Israelis left the country in September alone, a record for the month and a 17% increase compared to September 2025. Analysis by RIS of sales across 2,700 stores from September 3 to October 4, 2026, showed a 1.6% average decrease in sales for clothing stores compared to the previous year's holiday period. Some retail chains reported revenue drops of up to 10%.
Industry representatives cited mass overseas travel and the favorable exchange rate as primary reasons for the sales slump. They noted that Israelis, reacting to the high cost of living, increasingly prefer shopping abroad. One retail executive expressed surprise that the sales drop wasn't steeper, expecting a 4-5% decline instead of the observed 2%. He attributed the trend to pent-up demand for travel following the pandemic and the return of foreign airlines.
Additional factors contributing to weaker sales included unseasonably warm weather in September and October, which reduced demand for early winter clothing, and the timing of Rosh Hashanah shortly after the end of August. Many Israelis had already spent significantly on summer vacations and entertainment, leaving less disposable income for holiday shopping. Despite the holiday calendar aligning favorably with weekends, which typically boosts sales, overall revenue still declined.
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