Israel's hotels are only half full: domestic demand falls, foreign tourists don't save the day

In January–September 2026, Israeli hotels recorded 15.1 million overnight stays, 4.4% fewer than a year earlier. Domestic demand dropped, while foreign demand rose by 19% but did not offset the decline. Occupancy fell to 50.2%.

In January–September 2026, Israeli hotels recorded 15.1 million overnight stays, 4.4% fewer than in the same period of 2025 (15.8 million). Domestic demand declined: Israelis accounted for 12.7 million overnight stays (84% of the total), down from 13.8 million a year earlier. Foreign tourists, on the other hand, increased their overnight stays by 19% to 2.5 million, but this was not enough to offset the drop. Compared to the pre-crisis year of 2023, hotels lost 3.8 million overnight stays (20.1%), and occupancy fell from 64% to 50.2%. In September 2026, total overnight stays rose to 1.9 million (from 1.8 million in September 2025), but occupancy fell from 55% to 53%. The leader in occupancy among cities was Eilat (77.7%), while the lowest was in Tiberias (42.3%). The supply of rooms increased: in August 2026, 448 hotels were operating with approximately 54,000 rooms, compared to 52,000 a year earlier. The data is based on a report from the Central Bureau of Statistics.