Israeli Consumer Spending Drops Across Sectors Except Tourism, Which Surges 22%

After two weeks of increased consumer spending, Israel experienced a decline in sales across most major retail sectors last week, except for tourism and travel, which saw a 22% rise compared to the previous week. This data comes from the Phoenix Gamma Index, which tracks credit card activity and consumer behavior in Israeli retail.

The tourism sector's growth is primarily driven by a rise in bookings by Israelis, influenced by factors such as eased tensions with Iran, the start of summer school vacations, and the return of some foreign airlines to Israel. According to PassportCard data, the top five summer 2026 destinations for Israelis are Greece, Thailand, the United States, Cyprus, and Italy.

Increased temperatures also boosted sales in the air conditioning sub-sector, with some units sold at food retail chains for as low as 700-800 shekels. However, most Israelis still purchase from official importers, resulting in an average transaction value of about 4,400 shekels in this sub-sector. Overall, electrical goods sales fell by 6%, but air conditioning sales rose by 6% compared to the previous week.

Nadav Lachmani, CEO of Control from Phoenix Gamma, commented on the fashion and footwear sector's performance, noting that after recent weeks of growth, a correction occurred with a decline mainly in basic fashion items, pulling the entire sector down. Conversely, online fashion purchases increased, likely due to the reinstatement of the customs exemption threshold for overseas purchases back to $75, which encouraged more buying from Israeli websites.

This report highlights the shifting consumer trends amid economic and geopolitical changes, with tourism standing out as the only sector showing significant growth last week.