Jerusalem Cafes and Restaurants See Sharp Revenue Drop Amid Tisha B'Av and Security Tensions

The Tisha B'Av fast and the preceding nine days, combined with heightened security tensions with Iran and a severe heatwave, led to a significant decline in credit card spending across most major consumer sectors in Israel, according to Phoenix Gamma index data. The weakest day was Thursday, the day of the fast.

The tourism sector experienced the steepest drop, with a 24% decrease in spending compared to the previous week and 10% compared to the same period last year. This decline was driven by a 17% fall in the number of transactions and a 9% drop in average transaction size, possibly due to many having already booked summer vacations and last-minute travelers delaying plans amid security uncertainties.

Electrical goods spending fell by 22%, while computers and cellular devices dropped by 21%. The electrical goods sector saw declines in both transaction numbers and average purchase size, whereas the computer and cellular sector had a moderate drop in transaction numbers but a sharp fall in average transaction value. Fashion also weakened, with an 18% decrease in spending from the previous week, mainly due to fewer transactions, while average transaction size remained stable. The heatwave contributed to a 25% drop in street store sales compared to a 17% decline in malls.

The customary avoidance of meat during the nine days impacted cafes and restaurants, especially in Jerusalem, which led the declines in the sector. Cafes in Jerusalem saw a 40% drop in spending, restaurants 31%, and fast food 21%, with an overall 15% decrease nationwide compared to the previous week.

Nadav Lachmani, CEO of Control at Phoenix Gamma, described the declines as a temporary slowdown and predicted a rebound in spending on gifts, fashion, jewelry, cosmetics, and flowers ahead of Tu B'Av, provided the security situation stabilizes.