Travel in Israel

Positive growth in travel in Israel despite ongoing challenges

Israel’s travel industry continued to register positive growth in 2019 as the highly effective targeted marketing campaigns being undertaken by the industry’s principal stakeholders in key source markets for arrivals continued to pay dividends during the year. In addition, inbound arrivals was boosted by the wider availability of flights, the ongoing benefit of the open skies agreements which were signed by Israel with numerous different countries during the review period.

App-based peer-to-peer transport options place pressure on car rental

2019 saw rapid growth in the usage of Israel’s leading app-based peer-to-peer transportation booking platforms. This is placing pressure on demand for car rental as consumers are increasingly interested in applications such as Car2Go and City Car, which are regarded as more cost-effective and convenient than short-term car rental.

UP ceases operations due to practical commercial difficulties

Although some low cost carriers are thriving on Israeli routes, others are struggling and this has resulted in some recent high-profile closures, including Iceland-based WOW, which ceased operations in March 2019 due to concerns over its long-term viability. However, the most notable recent event in this vein was the decision by UP, the low-cost carrier arm of Israel’s national flag carrier El Al, to cease operations in October 2018.

Night camping offers hopes for a revival in other lodging

Although other lodging remains under severe pressure due to the seemingly relentless rise of short-term rentals, recording declining sales in 2019, there remains hope for the category’s recovery. Specifically, night camping continued to register rising interest among domestic and foreign tourists alike over the course of the year, spurring the development of new facilities.

Israel’s travel industry poised for further success

Towards the end of the review period, the prevailing trends in travel in Israel all pointed to further growth in arrivals and rising levels of tourist spending. Although the rising exchange value of the shekel means that tourists from many source countries now get less value for money when visiting the country, Israel is becoming an increasingly attractive destination due to the improving security situation, with no major terrorist incidents having been seen in the country in recent years.

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