Summer vacation in full swing: tourism and travel spending soars
Globes presents an index examining the volume of credit card purchases in Israel. Phoenix Gamma data shows a sharp spike in spending on family activities.
The peak of the summer vacation is clearly reflected in credit card data: over the past week, Israelis spent more on vacations, restaurants, and entertainment, and less on retail shopping. Following the week of Tu B'Av, which saw an increase in purchases of fashion, jewelry, and gifts, the trend reversed, and most retail sectors recorded moderate declines, according to data from the Phoenix Gamma index, which tracks credit card activity and consumer behavior in Israel.
The strongest shopping day this week was Monday. The growth was led by the tourism and travel sector, where purchase turnover increased by 14% compared to the previous week. The number of transactions rose by 8%, and the average purchase amount increased by about 5% to 2,443 NIS.
An even sharper increase was recorded in domestic tourism: purchase turnover in hotels jumped by 30% within a week. The number of transactions rose by 10%, while the average transaction amount climbed by 18% to reach 1,153 NIS. Cafes and restaurants also continued to benefit from the summer vacation, with an increase of about 2% in purchase turnover.
Conversely, retail sectors saw declines following the previous week's gains. The fashion, clothing, and footwear sector fell by 4% compared to the previous week, following the surge recorded around Tu B'Av. The electrical and electronics sectors also fell by about 4%, while the computer sector recorded a more moderate decline of about 1%.
Exceptions were sectors related to the home; building materials, ceramics, and sanitary ware, as well as the home design sector, recorded double-digit growth of more than 10%. Phoenix Gamma attributes this data to the summer period, during which many relocations and renovations are concentrated.
"At the height of the summer vacation, we see that the public is looking for places for experiences and entertainment with family and children," says Nadav Lachmani, CEO of Control from the Phoenix Gamma group. "In light of the decrease in security tensions in the region, there is a clear trend of an increase in booking flights and vacations abroad, as well as in hotels in Israel."
