Israeli Tourism Faces Severe Decline Due to Gaza Conflict
The ongoing conflict in Gaza has led to a staggering loss of 19.5 billion shekels (approximately $5.25 billion) in Israel's tourism sector during the past year. According to the Jerusalem Post, the international tourism losses account for 18.7 billion shekels ($5.04 billion), while domestic tourism losses reached 756 million shekels ($204 million), particularly affecting northern regions of Israel. The Ministry of Tourism has reported that around 853,000 tourists entered Israel, with a significant portion coming from the United States, France, and Britain. Notably, two-thirds of these visitors were Jewish, while 29% identified as evangelical Christians or Catholics.
The impact of the conflict has not only been financial but also humanitarian, with 68,712 residents displaced from their homes, primarily in northern Israel. The ministry has noted that about 15,600 of these individuals are currently residing in hotels, while the rest have sought alternative accommodations. The estimated cost of housing these displaced residents is around 5.45 billion shekels ($1.5 billion), with additional funds allocated for living grants to those who opted for non-hotel residences.
- The war has severely affected the recovery trajectory of Israel's tourism industry, which was still reeling from the impacts of the **COVID-19 pandemic**. Projections for **2024** indicate that only about **one million tourists** are expected to visit Israel, a significant drop from previous years. This downturn represents a mere **one-third** of the tourists who visited in the previous year and less than **25%** of the figures from **2019**. The **Ministry of Tourism** has also highlighted the financial burden of accommodating displaced families, with **NIS 8.648 billion** ($2.34 billion) spent on displacing **100,000 residents** from conflict zones, including costs associated with hotel accommodations.
