Israel’s tourism sector faces a severe decline in international arrivals, dropping from 4.5 million tourists in 2019 to approximately 1.3 million in 2025, according to eTurboNews. In the first half of 2026, around 440,000 foreign visitors entered Israel, with U.S. travelers comprising 36% of that total.
Tourist Arrivals and Hotel Stays Show Volatility
Visitor numbers fluctuated notably in 2026. May recorded 64,400 tourists compared with 124,000 in May 2025. June arrivals rose to 81,900 from 55,300 in the same month a year earlier. Israeli hotels reported 5.1 million overnight stays from January through April 2026, with 84% booked by domestic tourists.
Jerusalem Merchants Suffer from Low Visitor Numbers
Merchants in Jerusalem’s Old City across
Jewish, Muslim, Christian, and Armenian communities report a devastated tourism economy. They attribute the decline to reduced international flights, high airfare costs, and security concerns that deter travelers. Longtime shopkeepers describe conditions since October 2023 as the worst in decades, impacting businesses that depend heavily on pilgrimage and tourist purchases.
Ministry of Tourism’s Campaign and Investments
The Israel Ministry of Tourism launched the “I AM ISRAEL” campaign targeting North American, Jewish, and Christian visitors, investing approximately NIS 20 million. This campaign emphasizes Israeli people, culture, food, and daily life instead of traditional tourist sites. Additional investment includes NIS 25 million allocated for renovation of the Qasr
al-Yahud baptism site, a significant Christian pilgrimage location on the Jordan River.
EL AL Israel Airlines Financial and Operational Performance
EL AL Israel Airlines reported a net profit of $132 million in Q2 2026, doubling the $66 million profit in the same quarter of 2025. Its revenue increased from $777 million to $986 million despite an estimated $55 million loss linked to ongoing conflict with Iran. The airline maintained a load factor of around 90% and holds an advance booking backlog of roughly $1.4 billion. Plans include adding Boeing 737 aircraft and returning older Boeing 777s to service. EL AL also signed an agreement to introduce Starlink high-speed
internet across its fleet beginning in 2027.
Israel Tourism Recovery Forum and Industry Coordination
In August 2026, Israel hosted the Tourism Recovery Forum featuring government officials, airlines, hotels, tour operators, academics, and U.S. Ambassador Mike Huckabee. The forum prioritized restoring direct U.S.-Israel air service, rebuilding visitor confidence, and developing initiatives to attract American tourists. The ministry continues to support domestic tourism expansion and hotel capacity enhancements while engaging with airlines to resume international flights.
The tourism crisis contrasts starkly with EL AL’s financial growth; the airline benefits from reduced international competition amid fewer foreign carriers operating to Israel. However, merchants urgently need the return of international tourists
and expanded airline capacity to revive local economies. Tourism Ministry Director-General Michael Izhakov stated, “When there are no flights, there is no tourism.” The ministry focuses on showcasing everyday Israeli life to maintain interest among travelers inclined to visit despite geopolitical challenges.
