Israeli Tourists Sustain Hotels as Foreign Visitors Remain Scarce Amid Security Concerns

The Israeli hotel industry is showing signs of recovery but continues to face challenges due to delayed return of foreign tourists amid ongoing security issues. According to the Central Bureau of Statistics, in the first half of 2026, Israeli hotels recorded approximately 8.5 million overnight stays, down from 9.2 million during the same period in 2025. Israeli guests accounted for about 7.2 million stays, representing 85% of total hotel activity, while foreign tourists contributed only 1.3 million stays, or 15%.

Hotel room occupancy rates also declined nationally, averaging 45% from January to June 2026 compared to 49% in the first half of 2025. Regional disparities were notable, with the Southern District achieving the highest occupancy at 61%, while the Northern District had the lowest at 29%. Major cities showed varied occupancy: Jerusalem at 32%, Tel Aviv at 44%, Haifa at 42%, and the Central District at 46%.

June 2026 indicated some improvement, with 1.8 million overnight stays recorded, up from 1.4 million in June 2025. Of these, 1.6 million were Israeli stays and 244,000 were foreign tourists. Room occupancy in June rose significantly to 57%, compared to 42% the previous year. Eilat led demand with an 89% occupancy rate, followed by the Dead Sea at 58%, Tel Aviv-Yafo at 52%, and Haifa at 45%, while Jerusalem lagged at 34%.

The number of active hotels in Israel slightly decreased, with 443 hotels operating in May 2026 offering about 51,000 rooms, down from 53,000 rooms the previous year. The Central Bureau of Statistics attributed the downturn to the ongoing security situation, including the impact of military operations such as "Iron Swords" and "Roar of the Lion," which began on February 28, 2026, causing sharp declines in occupancy and cancellations.

Despite these challenges, domestic tourism remains robust, with Israelis continuing to fill hotel rooms, while inbound tourism from abroad remains significantly below pre-crisis levels, reflecting the complex recovery landscape for Israel's hospitality sector.