Israel welcomes tourists back as hotels recover from evacuee stays

Israel’s Ministry of Tourism reported on Wednesday that 2025 was a year of cautious recovery and unprecedented crisis management, as the country welcomed a slow return of foreign tourists.

The year will close with approximately 1.3 million incoming visitors, even as officials work to stabilise the hotel industry, which supported thousands of Israeli evacuees, the ministry said.

“The easing of travel warnings and the restoration of airline routes have allowed tourism to begin returning,” Tourism Minister Haim Katz said. “At the same time, we had a responsibility to protect citizens and maintain the tourism industry during an extremely challenging period. Both missions were critical for the future of Israeli tourism.”

The United States remained Israel’s largest source market, sending roughly 400,000 visitors, followed by France with 159,000 and the United Kingdom with 95,000. Other notable source countries included Russia, Germany, Ukraine, Canada, and Romania. Domestic tourism also continued to be a stabilising force, with more than 13 million overnight stays by Israelis recorded in hotels nationwide by the end of the third quarter.

Survey data collected by the ministry in the first half of 2025 showed evolving visitor patterns since the war. The average stay fell to 9.3 nights from 11.4 in 2024, while spending by independent travellers increased to A$2,400 per trip, excluding flights. Visiting friends and relatives remained the leading motivation, cited by 45% of tourists, followed by vacation at 14% and business at 12%. Satisfaction levels were high, with 88% reporting a positive experience and 83% saying they would recommend Israel as a destination.

Alongside the gradual return of foreign tourists, the ministry led a historic effort to house residents from conflict zones.

More than 125,000 evacuees were accommodated in roughly 670 hotels and guesthouses across the country, a program that concluded in July 2025. The state paid hotels approximately NIS 7 billion (A$3.29 billion) for hosting evacuees, which officials said preserved thousands of jobs and prevented widespread collapse in the hospitality sector. An additional NIS 175 million (A$82.16 million) was allocated to renovating properties affected by prolonged stays and returning them to normal tourist operations.

“This operation was not only a humanitarian necessity. It also saved the hotel industry and safeguarded livelihoods across Israel,” Katz said.

“For a long period, tourism was not about vacations at all,” Katz added. “It was about keeping people safe, maintaining jobs, and ensuring that the industry would still exist when recovery begins.”

Ministry Director General Michael Yitzhakov said the dual mission of welcoming tourists while managing a large-scale evacuation required careful coordination. “We had to operate simultaneously in crisis management and long-term planning,” he said. “This meant strengthening infrastructure, supporting entrepreneurs, and maintaining our marketing presence abroad, even when tourist arrivals were limited.”

Looking ahead to 2026, the ministry plans to build on early signs of recovery by expanding hotel supply, investing in public tourism infrastructure, and integrating artificial intelligence into marketing and operations. Grants totalling over 180 million shekels were approved this year for the construction of 2,050 new hotel rooms, and another 174 million shekels were allocated to infrastructure projects proposed by local authorities.

In parallel, the ministry approved more than NIS 180 million (A$126 million) in grants for entrepreneurs to build over 2,000 new hotel rooms and allocated about NIS 174 million (A$81.7 million) for public tourism infrastructure projects submitted by local authorities.

Looking ahead to 2026, officials say the ministry will expand its use of artificial intelligence in marketing and operations and establish a tourism innovation community linking startups with industry players. “After a period in which tourism helped carry the home front,” Yitzhakov said, “our task now is to restore international confidence and turn resilience into renewed growth.”

“Tourism played a critical role both in protecting citizens and supporting the economy,” Yitzhakov said. “Now our focus is on restoring international confidence and turning resilience into renewed growth.”