Billions of shekels - the heavy toll the war has taken on Israel's tourist industry

The Israel-Hamas conflict has severely impacted the tourism sector, resulting in billions of shekels in losses, according to the Tourism Ministry. Projections for 2024 indicate that Israel will welcome only about one million tourists, significantly down from the 4.5 million in 2019. Over a year into the conflict, international tourism losses amount to NIS 18.7 billion, with an additional NIS 756 million lost domestically, particularly in northern Israel.

The ministry oversees both the management of displaced residents near the Gaza border and tourism data. It reported that around 853,000 tourists have visited Israel recently, predominantly from the U.S., France, the UK, Russia, and the Philippines. Most visitors (62%) were Jewish, while 29% identified as Evangelical Christians or Catholics. Nearly half visited for family reasons, with 28% coming for leisure and 13% for business; three-quarters had previously travelled to Israel.

Currently, 68,712 residents, mainly from the north, remain displaced, with the government incurring costs of NIS 5.466 billion for their hotel accommodations and NIS 3.182 billion in grants for those living in their communities. The ministry's measures have saved the state NIS 5.173 billion by eliminating commissions for hotel placements and taking over from private agents.

Tourism Minister Haim Katz emphasized ongoing efforts to bolster the tourism infrastructure despite current challenges and the impact of the war on recovery from the COVID-19 crisis. While 2023 saw only three million visitors, there were hopes for a record number before the conflict interrupted this momentum.