Israelis keep hotels afloat: tourists still far from returning

Israel's hotel industry faces a complex reality: Israelis account for 85% of overnight stays, while incoming tourism remains low. CBS data for the first half of 2026 shows a decline in occupancy compared to last year, but June indicates some recovery.

Israel's hotel industry continues to grapple with the effects of the security situation, with CBS data for the first half of 2026 indicating an overall decline in activity compared to the same period last year. However, June shows some signs of recovery. Israelis remain the backbone of the industry, with about 7.2 million overnight stays (85% of total stays), while tourist stays amount to only 1.3 million. The national occupancy rate stood at 45%, with significant regional gaps: the south leads with 61%, the north at the bottom with 29%. In June, occupancy rose to 57%, with Eilat standing out at 89%. The data were affected by Operation "Shagat Ha'Ari" that began in February 2026, in addition to the ongoing effects of the "Swords of Iron" war and previous operations. The number of active hotels dropped to 443, with about 51,000 rooms compared to 53,000 last year.