The number of visitors dropped to one million tourists, a level similar to that of 2020.

In 2023, income from the hospitality branch accounted for about 26% of the total tourism sector income, and the aviation branch 18%. The report does not cover other sectors such as travel agencies, food, transportation, and recreational activities.

The tourism sector is an important – though relatively small – component of the Israeli economy. It contributes about 2.5% of the GDP and provides around 150,000 direct jobs, representing 3.8% of total jobs in the labor market.

In 2019, before the COVID-19 crisis, foreign tourist spending in Israel reached about 25.9 billion shekels, while tourism exports reached 6.7 billion dollars, accounting for about 6.3% of total service exports.

The events of October 7 and the ongoing war since October 2023 immediately and directly affected the inbound tourism sector to Israel, which recorded a sharp decline compared to previous years.

The number of tourists visiting the occupation state was about 3.1 million in 2015, rising to 3.9 million in 2017, then to 4.1 million in 2018, and up to 4.9 million in 2019 before the COVID-19 crisis.

However, 2020, coinciding with the COVID-19 pandemic, witnessed a sharp drop in visitor numbers. Between 2021-2023, a partial recovery was recorded with numbers reaching about 3.2 million, around 65% of 2019 levels, with an average of less than one million visitors annually.

In 2024, after the outbreak of the war on Gaza, the number of arrivals declined to one million tourists, a level similar to that of 2020.

Foreign flights to Israel decreased by 70% due to many airlines suspending their flights to Israel.

The accommodation and hotel sector in Israel during 2024 witnessed a noticeable decline in revenues, dropping by 18% from the expected level and about 25% compared to 2023.

The contribution of foreign tourism to hotel revenues did not exceed 10% in 2024, after it was about 43% in 2019.

The occupation government provided a wide range of support tools directed at the tourism sector, including compensation through the “Damage Fund” to repair property damage or compensate for profit losses.

It also provided unemployment benefits with eased conditions, especially for workers who were laid off or forced to take unpaid leave.

Additionally, the government granted incentive grants for returning to work amounting to up to 3,000 shekels monthly for workers coming from evacuated areas.

The occupation government allocated special loans to the tourism sector, in addition to financing the costs of hosting displaced persons worth 175 million shekels.

Also, 70 million shekels were allocated to support inbound tourism through marketing and promotional campaigns, alongside 10 million shekels to boost domestic tourism.

Compensations were also provided to tourism business owners for damages caused by the prevention of Palestinian workers from entering the labor market.