The ongoing conflict in Israel has had a devastating impact on the country’s tourism industry, compounding the challenges of recovering from the COVID-19 pandemic. According to the Tourism Ministry, the conflict has resulted in a net loss of NIS 18.7 billion from international tourism and NIS 756 million from domestic tourism, particularly impacting northern regions.
While the ministry reported a total of 853,000 tourists entering Israel in the past year, this number falls far short of pre-conflict projections. Notably, two-thirds of these visitors identified as Jewish (62%), followed by 29% who were Evangelical Christians or Catholics. The majority (44%) traveled to visit friends and family, with 28% being tourists and 13% coming for business purposes. It’s worth noting that nearly three-fourths of these tourists had previously visited Israel.
The conflict has also forced the displacement of 68,712 individuals, primarily from northern areas, who are still unable to return home. The financial burden of accommodating these evacuees has reached NIS 5.466 billion, with 53,113 staying within the wider community and 15,599 residing in hotels. The Tourism Ministry has implemented measures to manage the evacuation process, including eliminating agent commissions for hotel placements, reportedly saving the state NIS 5.173 billion. Despite these efforts, the ongoing conflict has incurred significant costs for the state, amounting to NIS 8.648 billion for evacuations thus far.
The disruption to the tourism industry’s recovery from the COVID-19 pandemic is stark. While a record tourism influx was anticipated based on trends up to October 2023, only three million tourists entered Israel this year. Projections for 2024 indicate that only around one million tourists are expected to visit, representing less than a quarter of the 2019 visitor numbers. The impact of the conflict on the tourism industry is a significant setback for the country’s economy and underscores the need for a comprehensive strategy to rebuild and support this vital sector.
