Israelis are holding up the hotels: Tourists are still far from returning

The hotel industry in Israel is trying to recover, but data shows that the return of tourists from abroad is still delayed. While Israelis continue to fill a large portion of hotel rooms and maintain the industry's activity, the number of tourist overnight stays remains low, and hotels are still dealing with the ongoing damage following the security situation.

According to Central Bureau of Statistics data, in the first half of 2026, about 8.5 million overnight stays were recorded in tourist hotels in Israel, compared to about 9.2 million in the same period last year. Of the total overnight stays, about 7.2 million were by Israelis, who accounted for about 85% of all hotel activity, while tourist overnight stays totaled only about 1.3 million — about 15% of all overnight stays.

There was also a decrease in room occupancy: the national occupancy rate between January and June stood at about 45%, compared to about 49% in the same period in 2025. The gaps between the country's regions were significant: the Southern District showed the highest occupancy with about 61%, while the Northern District recorded the lowest rate with only about 29%. In Jerusalem, room occupancy stood at about 32%, in Tel Aviv at about 44%, in Haifa at about 42%, and in the Central District at about 46%.

Despite the complex picture, the month of June indicates a certain recovery in hotel activity. During the month, about 1.8 million overnight stays were recorded, an increase compared to about 1.4 million overnight stays in June 2025. Of this figure, about 1.6 million overnight stays were by Israelis and about 244 thousand overnight stays by tourists from abroad.

Room occupancy in June was also significantly higher compared to last year and stood at about 57%, compared to 42% in June 2025. The city that led the demand was Eilat, where room occupancy of about 89% was recorded. It was followed by the Dead Sea with about 58%, Tel Aviv-Yafo with about 52%, and Haifa with about 45%. Jerusalem remained behind with occupancy of only about 34%. At the same time, the number of active hotels in Israel continues to reflect the impact of the complex period: in May 2026, 443 tourist hotels operated in the country, with about 51 thousand active rooms, compared to about 53 thousand rooms in the same period last year.

The Central Bureau of Statistics notes that the data was influenced by the security situation and military operations in recent years. After the damage to the sector following the "Iron Swords" war, and subsequently following additional operations that affected tourist traffic and vacation cancellations, the "Lion's Roar" operation that began on February 28, 2026, also led to a sharp decline in room occupancy and the number of overnight stays.

However, data from recent months indicates a clear gap between the local market and inbound tourism: Israelis have returned to vacationing in Israel, but tourists from abroad still constitute a significantly smaller part of hotel activity compared to the years when the industry operated in a routine manner.