Israeli tourism industry in crisis despite ceasefire with Hezbollah, warns industry leader

The director of Israel's Incoming Tour Operators Association, Yossi Fattal, told Ynet News that the tourism industry in Israel remains in deep crisis, despite the ceasefire in the north with the Iranian-backed Lebanese terrorist group Hezbollah.

Fattal noted that annual inbound international tourism to the Jewish state has collapsed and stagnated around one million entries compared to nearly five million entries in 2019 prior the pandemic.

“Right now we’re seeing about one million tourist entries a year,” Fattal stated. “But a third of those aren’t tourists – they’re people visiting family. At its peak in 2019, Israel welcomed 4.9 million tourists. We’re back to COVID-era numbers. Even for this Friday’s Pride Week events, which used to draw international crowds, turnout is low – it’s become a fully local event this year,” he stated.

Fattal described the dramatic decline of the Israeli tourism industry amid the ongoing Gaza War between Israel and the Hamas terrorist organization.

“Inbound tourism used to be Israel’s fifth-largest export sector, generating about NIS 40 billion ($10.7 billion) and accounting for 7% of national exports. That figure has now dropped to just 2%.”

Prior to the war, the tourism industry accounted for 15% of the jobs in Israel’s peripheral regions – areas that were hit particularly hard by the war with Hezbollah and Hamas

“Cities like Tiberias, Nazareth and Safed have no economy without it,” Fattal warned. “Of the 3,000 people who used to work in this industry, only a third remain,” he revealed, adding, “Hotels managed to stay afloat during the war thanks to evacuees, but now they rely solely on foreign tourists.”

While security remains a key concern, he argues that Israel is also grappling with a deteriorating global image amid the ongoing war.

“The problem isn’t just security – it’s our global image, which has collapsed over the past year. International reputation is a strategic asset for any country,” he explained.

The head of the tourism sector is not impressed with the government’s decision to address the collapsing global image by earmarking NIS 556 million ($149 million) in the 2025 budget to the Foreign Ministry in Jerusalem.

“It’s a massive sum – and completely ineffective,” he said. Instead, Fattal believes that the tourists themselves would be the best ambassadors for promoting Israel as an attractive destination.

“We proposed a plan to the Foreign Ministry to encourage tourists to share their experiences – photos, hashtags, posts – in exchange for benefits. That’s far more effective than traditional marketing,” he explained.

Fattal stressed that there is currently a wide gap between daily life in Israel and international perceptions about the Jewish state, particularly during times of war.

“Tel Aviv is alive, cafés are full. But abroad, all they see are horrifying images from Gaza. The state isn’t doing anything to fix that.”

“We need to stop apologizing and start responding. Right now, the global conversation is dominated by anti-Israel individuals, with almost no effective counter-message. Israel doesn’t even have a national public diplomacy director,” he added.

Looking ahead, Fattal predicted that restoring Israel’s damaged global image will require substantial time and resources.

“Even if the war ends tomorrow, the reputational damage is already ingrained and will haunt us for a long time. The Foreign Ministry claims it’s bringing influencers to Israel, but we don’t see it. We’ll know we’re welcome abroad only once tourists start returning,” he concluded.

In February 2024, Israeli Minister of Tourism Haim Katz expressed Israel’s appreciation for the support it receives from the Christian Evangelical community. The minister further urged Christians and to visit the Holy Land.

“The support and messages of solidarity from the Christian community were a great light for us in the darkness. Be our ambassadors in words and deeds. The best way to support Israel is to visit Israel,” Katz stated.

“The safety of tourists is our top priority. Israel takes great care regarding the safety of tourists and citizens alike. Most of the tourist areas were not affected by the war and are completely safe. Come again this year, to strengthen yourselves and to strengthen us,” he added.