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Israel's tourism industry has experienced significant challenges recently. After reaching a new peak in 2019, with *** million annual visitors, the country saw a dramatic drop to just ** visitors in 2021 due to the COVID-19 pandemic. A rebound in 2022 and 2023, ended with the start of the Israel-Hamas war at the end of 2023. Interestingly, some businesses have found ways to endure the slump in tourist arrivals.

A pause on air travel

With the start of the war in Gaza between Israel and Hamas, international tourist travel to the country significantly diminished. Foreign airlines reduced their flight frequency, and at times even paused services. Between November 2023 and February 2024, no American carriers flew to the country. As a result, monthly air passenger traffic fell to just ** in November 2023.Ìý

A new war economy

Despite setbacks, some tourism-oriented businesses found openings in the new war economy. To offset the loss of foreign visitors, local hotels accommodated Israelis evacuated from conflict regions in the North and South of the country. In the month following the outbreak of hostilities, hotels hosted over *** million guest-nights with Israeli customers. The Israel national airline, El Al, is another example of resilience. As the company maintained its services throughout 2024, it became the most reliable air travel provider, resulting in a doubling of its quarterly profits.Ìý