The Israeli hotel sector continues to struggle, recording just 10.6 million overnight stays nationwide between January and July 2026, down from 11.4 million during the same period in 2025. Average room occupancy dropped alongside total stays, exposing a deepening divide between resilient southern resort hubs like Eilat and battered northern and central destinations like Jerusalem.
2+According to data released on Tuesday by the Central Bureau of Statistics (CBS), domestic Israeli stays accounted for 9 million nights (roughly 84% of all bookings) during the first seven months of the year—a noticeable decline from 9.9 million Israeli overnight stays recorded during the corresponding period in 2025. Meanwhile, international tourist stays rose slightly to 1.7 million, compared to 1.5 million in early 2025.
Nationwide average room occupancy fell to 47.3% between January and July, down from 50.5% in the same period last year, meaning more than half of all hotel rooms across Israel sat vacant on average.
However, national averages mask stark geographic disparities:
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The Southern District led the country with an average 63% occupancy rate, powered by Eilat, which reached 87.6% occupancy in July.
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The Dead Sea maintained relatively solid demand, reaching 58% occupancy in July.
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The Central District recorded an average occupancy of 47.9%, sliding from 57.8% in early 2025.
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Tel Aviv-Yafo saw July occupancy fall to 51.4%, down from 59.5% in July 2025.
2+Northern and Jerusalem Hotels Struggle
The situation remains acute in Jerusalem and the North, regions historically reliant on foreign inbound tourism:
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The Jerusalem District averaged just 34.2% occupancy.
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The Northern District recorded 32.1% occupancy, down from 39.3% in the same period last year.
Even July—traditionally peak summer travel season—failed to reverse the sluggish trend, tallying 2.2 million stays nationwide. Of those, 1.8 million were domestic travelers (down from 2 million in July 2025) and 395,000 were international tourists (up from 165,000 in July 2025). The sluggish recovery reflects successive security shocks across recent years. Following the post-COVID recovery and the Swords of Iron war, the sector weathered Operation Am Kelavi in 2025, which grounded international flights and prompted widespread domestic cancellations.
Security developments in 2026 caused further disruption. Operation Roaring Lion, launched on February 28, triggered a steep plunge in March occupancy rates down to an aggregate 26.7% nationwide—with Jerusalem and Tiberias sinking to 14.9% and 5.1% occupancy, respectively. Domestic demand remains volatile, posting an average monthly decline of 1.8% in Israeli stays between May and July, while inbound tourist stays leveled at around 247,000 per month.
2+As of June 2026, Israel has 443 active tourist hotels comprising approximately 52,000 rooms. The latest statistics confirm that the sector remains far from a full recovery, especially in regions dependent on international travel.