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Nearly 100 Israeli hotels shut down as tourism declines amid war

Illustrative - An empty hotel pool in the southern Israeli town of Ashdod. November 25, 2024. (Photo: David Cohen/Flash90

The Israeli tourism industry is struggling amid the ongoing war with the Iranian-backed terror proxies Hamas and Hezbollah. Some 90 hotels have been forced to close since the Hamas Oct. 7 massacre last year, according to an Israel Hotel Association report released on Sunday.

Sivan Detauker, CEO of the Israel Hotel Association assessed that one-fifth of the Israeli hotel industry is currently failing and the situation is deteriorating. 

"Approximately 90 hotels have been closed since the war began, accounting for 20% of the industry, and the situation is worsening," Detauker warned. The period from September to October is usually boosted by the busy Jewish High Holiday season. However, the latest report notes a significant 29% drop in hotel stays in October 2024 compared to last October. 

At the same time, international tourism has decreased dramatically during the past year of war. Only 120,000 overnight stays by international tourists were recorded in October 2024, marking a 63% decrease compared to the same period last year and an 86% drop compared to October 2022. For the entire year, just 1.6 million tourist stays were recorded, a sharp decrease from 7.5 million in 2023.

Cities in northern Israel have been hit particularly hard by the lack of tourism due to the escalating war with the Hezbollah terrorist group in Lebanon. The number of overnight stays decreased in Haifa by 51%, Tiberias by 45% and Nazareth by 80%. The national average hotel room occupancy fell to 51%, down from 63% in 2023.

A few notable exceptions that saw an increase in hotel stays include the Dead Sea region (62%), the city of Netanya located on the Meditteranean Sea (63%) and the resort area of Eilat (72%), Israel's southernmost city on the Red Sea.

Before the Hamas attack, Israel's tourism sector was steadily recovering from the challenges posed by the COVID-19 pandemic. However, the recent conflict has caused the industry to face significant struggles once again.

The All Israel News Staff is a team of journalists in Israel.

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