Israel’s hotel sector showed remarkable resilience in 2024, with hotels nationwide reporting an average occupancy rate of 60.1%. The data, based on the Central Bureau of Statistics’ 2025 statistical yearbook, reveals a clear trend: the industry is being sustained by a strong and steady domestic market.

While total overnight stays reached 22.53 million, a staggering 92% of these were from Israelis. Only 8.2% of all stays were from international tourists, a sharp decline compared to the 7.68 million tourist stays recorded in 2023. This dramatic shift highlights how local demand has become the primary engine of the industry.

The country’s 437 hotels (with 50,861 rooms actively operating) saw a total revenue of approximately $3.65 billion. Of this, only about $356.4 million came from tourists. This financial performance, coupled with a monthly average of 31,901 jobs in the sector, shows that the hotel industry remains a significant economic force, supporting a wide supply chain from food and beverage to maintenance and other tourism services.

Since October 2023, the data on overnight stays and revenue has included payments for displaced residents staying in hotels. This factor further emphasizes the dominance of the local market in the past year’s figures, as it skews the proportions of both stays and revenue heavily toward domestic guests.