Against the backdrop of falling international tourist arrivals and a decrease in the number of evacuees staying in hotels across conflict zones in the south and north, Israel's hotel industry continues to face relatively low occupancy rates. According to data published last week by the Central Bureau of Statistics (CBS), average hotel room occupancy stood at just 47% between January and July 2026 - a 4% decline compared to the same period in 2025.
Eilat continues to stand out above the rest, recording the highest occupancy rates in the country.
Fewer stays, fewer tourists
The data reveals that between January and July, tourist hotels in Israel logged 10.6 million overnight stays, compared to 11.4 million during the same period in 2025. Of the total stays, approximately 9 million were by Israelis, accounting for 84% of all overnights. In the corresponding period last year, 9.9 million stays were by Israelis, representing 87% of the total.
Conversely, tourist overnight stays from January to July totaled 1.7 million, making up just 16% of all overnights. This compares to 1.5 million tourist stays during the same period in 2025, when they accounted for 13% of total overnights.
The drop in incoming tourism activity occurred against the backdrop of Operation Roaring Lion, which lasted 40 days and effectively halted the arrival of most tourists to Israel.
Wars hit the hotel industry
A CBS analysis of data from the past six years shows that following sharp drops in incoming tourism during 2020–2021 due to the COVID-19 pandemic, the hotel industry saw a recovery during 2023. However, with the outbreak of the Operation Swords of Iron in October 2023, hotel operations were hit once again.
Later, with the launch of Operation Rising Lion on June 13, 2025, and the closure of Israeli airspace, a sharp drop occurred in tourist stays. Concurrently, vacation plans for Israelis were canceled, and displaced residents were housed in hotels. With the start of Operation Roaring Lion on February 28, 2026, room occupancy and overnight stays dropped sharply once again.
As of June 2026, 443 tourist hotels were active in Israel, with approximately 52,000 active rooms, compared to about 51,000 rooms in June 2025.
Eilat leads, Jerusalem at the bottom
A breakdown of room occupancy by district from January to July 2026 shows the South leading at 63%. It is followed by the Central district at 47.9%, Tel Aviv at 47.1%, Haifa at 44.4%, Jerusalem at 34.2%, and the North at 32.1%.
July's figures also highlight significant gaps between destinations. During the month, tourist hotels recorded 2.2 million overnight stays - 1.8 million by Israelis and approximately 395,000 by international tourists.
By municipality, Eilat tops the list with an 88% room occupancy rate, followed by Tel Aviv at 51% and Haifa at 44%. At the bottom of the list is Jerusalem, where July room occupancy stood at just 34%.