“Only time will bring people back,” said Priber. “People need to feel there is no noise, no bombs, no war. People want to see at least a year of quiet before they book again.”
The Gordonia Salon at Zichron Yaakov (Asaf Pinchuk)[Missing Credit]
For now, Israeli tourists account for almost all of the group’s business.
“I believe in 2027 this will change,” he said. “The people who are coming are generally Evangelicals, Jews celebrating barmitzvahs and weddings, and people visiting family. Tel Aviv in the good times was a place people came to party and dine out, but that’s not happening in the same way now. The war with Iran burst the bubble that Israel was somehow immune to these things. But I hope we are coming to the end of it. While people can’t get insured, it remains a challenge, but in time people will come back.”
The US remains Israel’s largest market for tourists, followed by France and the UK, and the Jewish diaspora is a crucial pillar supporting the sector.
Noga Sher-Greco, director of religious tourism marketing at the Israel Ministry of Tourism, told the JC: “The diaspora is not merely a source of tourism for Israel; it is our most vital living bridge and an essential pillar of our national resilience.”
Israel welcomed a record 4.55 million tourists in 2019, the benchmark year for inbound tourism. By comparison, there were 961,700 tourist arrivals in 2024 and 1.318 million in 2025. Although arrivals rose by more than a third last year, they remain less than a third of pre-war levels.
The infinity pool at Gordonia Zichron Yaakov (Asaf Pinchuk)[Missing Credit]
Zvi Dahan, co-owner of the Joseph Hotel in Jaffa, said the industry has experienced several phases since October 7. “The first period was from October 7 until about the end of that month, when there really was no tourism at all,” he said.
“Then evacuees started arriving, which was a challenge in itself because we were no longer simply a hotel but hosts to displaced families. Since January 2026, it’s been the most difficult,” he said. “Tourism has been basically zero. Foreign tourism in general disappeared once the war with Iran began. Domestic tourism is only on weekends.”
Even so, investment continues. In Eilat, new hotels, restaurants and shopping centres have opened, mainly serving Israelis choosing to holiday at home. “There was an Israeli dilemma about going on holiday during wartime,” said Itamar Elizur, head of Eilat’s hotel association. “At the same time, there were limited flight options, the north was closed and Sinai was off limits. That created an opportunity for Eilat.”
Hotels are running at around 90 per cent occupancy this summer, with around half a million holidaymakers expected in July and August alone.
In Tel Aviv, Danny Tamari, owner of the Vera boutique hotel, is preparing to open his second property, the £10 million luxury ABY Hotel on Allenby Street, in August. The project was delayed by a year after a nearby building suffered a direct missile strike during last year’s conflict with Iran. “Over the last couple of months Tel Aviv has started getting its energy back,” Tamari said. “People are more optimistic.”
He said the Gaza ceasefire and the return of some hostages helped revive demand. “Even more encouraging, there were a lot of guests from Europe – couples coming on cheap Wizz Air flights. They weren’t Jewish and many had never been to Israel before. They came because the weather was good. It made us feel good because you hear so much about hatred towards Israel abroad and there are people who don’t care about politics.”
Guy Rigel, owner of the Tree House luxury treehouse concept in central Israel, says the rise of glamping and nature tourism has accelerated since periods of conflict forced Israelis to spend more time close to home. “There’s something truly unique about staying here. In a way, it’s like making a childhood dream come true.”
