As Israelis flock overseas, Israel's hoteliers remain pessimistic

Israel's Central Bureau of Statistics reports 1.3 million Israelis traveled abroad in July, the highest monthly figure since the war began. Hotel industry sentiment remains negative with a net balance of minus 18%, though improving from March's minus 46%. Israeli hotel overnights rose 6.2% year-over-year, while tourist overnights fell sharply by 42.9%. The strong shekel and suppressed demand drive the trend.

Israel's Central Bureau of Statistics published two reports shedding light on the hotel industry and Israelis' travel appetite. In July, 1.3 million Israelis traveled abroad, the highest monthly figure since the war began, with 1.15 million flying. This compares to 1.1 million in July of the previous year. A business trends survey showed hotel industry sentiment remains negative, with a net balance of minus 18%, though improving from minus 46% in March and minus 20% in June. In July, Israeli hotel overnights rose 6.2% year-over-year, the first increase since November 2025, while tourist overnights fell sharply by 42.9%. Employment in the industry dropped 2.2% and company proceeds fell 6.4%. Ofer Klein, head of the Economics and Research Department at Harel Insurance and Finance, attributes the surge in outbound travel to the strong shekel and suppressed demand deferred due to the war. Foreign airlines including Swiss, Condor, and Brussels Airlines are returning, with KLM, Delta, and United expected to join. In January-July 2026, there were 4.67 million exits by Israelis, compared to 4.88 million in the same period of 2025, a decline attributed to Operation Roaring Lion against Iran in February-March.