Foreign Credit Card Spending in Israel Rebounds Despite Low Tourism
Foreign credit card spending in Israel nearly matched pre-war levels in early 2026, reaching 9.7 billion shekels, despite a 78% drop in actual tourist arrivals.
The tourism sector in Israel presents a puzzling economic paradox: while foreign credit card spending has nearly recovered to pre-war levels, the actual number of incoming visitors remains severely depressed. Data from SAVAE (Automated Bank Services), which manages Israel's national payment system, shows that tourist expenditures in the first half of 2026 reached 9.7 billion shekels. This reflects a modest drop of only 7.8% compared to the first half of 2023, when spending stood at approximately 10.5 billion shekels.
The Gap Between Spending and Visitor Numbers
However, official figures from the Ministry of Tourism tell a completely different story regarding physical arrivals. During the first half of 2026, Israel recorded roughly 430,000 tourist entries—a steep plunge of about 78% compared to the 1.97 million entries registered during the same period in 2023. A closer examination of specific sectors clarifies this discrepancy. Classic tourism-dependent industries suffered sharp declines: hotels and guest houses dropped 43.9%, restaurants and cafes fell by 36.5%, and duty-free shopping plummeted by 52.8%.
"Tourist expenditures in Israel, using charge cards, are in a recovery trend, but they are still far from returning to pre-war normalcy," said Tali Hollenberg, VP of Marketing, Business Development, and Sales at SAVAE.
Explaining the Foreign Card Surge
Several economic and demographic factors explain why credit card volumes remain robust despite the absence of vacationers. First, online purchases via foreign cards rose by roughly 1% in H1 2026 compared to H1 2023, while physical purchases dropped by 18%. SAVAE notes that international Jewish organizations and bodies frequently purchase supplies and aid for affected communities in Israel via remote transactions, which register as foreign card expenditures without requiring physical tourism.
Furthermore, inflation running close to 10% accounts for a minor portion of the nominal spending resilience. Demographic shifts among foreign cardholders also play a role. Data from the Ministry of Aliyah and Integration indicates a steady influx of immigrants from affluent Western nations such as the United States, France, and the United Kingdom, alongside a persistent presence of diplomats, journalists, and international aid workers who rely on foreign bank accounts for daily living expenses.
