Israeli Summer Vacation Spending Surges on Travel and Dining, Retail Sees Moderate Decline

During the peak of the Israeli summer vacation, credit card spending data reveals a significant increase in expenditures on travel, dining, and entertainment, while retail purchases have declined moderately. According to the Phoenix Gamma index, which tracks credit card activity and consumer behavior in Israel's retail sectors, the week following Tu B'Av saw a reversal from earlier trends that favored fashion, jewelry, and gift purchases.

The strongest shopping day was Monday, led by the tourism and travel sector, which experienced a 14% increase in purchase volume compared to the previous week. The number of transactions rose by 8%, and the average purchase amount grew by 5% to 2,443 shekels. Domestic tourism showed an even sharper rise, with hotel spending jumping 30% in one week, transactions up 10%, and average spending per transaction increasing 18% to 1,153 shekels. Cafes and restaurants also benefited from the summer break, with a 2% increase in sales.

Conversely, retail sectors such as fashion, clothing, and footwear declined by 4% after a previous surge around Tu B'Av. Electronics and electrical goods also fell by about 4%, while computer sales dipped slightly by 1%. Exceptions were home-related sectors, including building materials, ceramics, sanitary ware, and home design, which all saw double-digit increases exceeding 10%, attributed to the summer season's typical surge in moving and renovations.

Nadav Lachmani, CEO of Control by Phoenix Gamma, commented that the public is seeking experiences and family outings during the summer vacation. He noted a clear trend of increased flight and holiday bookings abroad and hotel stays in Israel, linked to a reduction in regional security tensions.