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Israel's Tourism Industry – 2018 Annual Summary

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Israel's Tourism Industry – 2018 Annual Summary Israel's Tourism Industry – 2018 Annual Summary 2018 ends in a second consecutive record-breaking year for tourist arrivals A record 4.1 million tourists Tourist arrivals (annual data, millions) 5.0 entered Israel in 2018, an increase Source: CBS 4.1 of 14% over 2017 and 42% over 4,000,000 3.6 4.0 2016. Tourist stays in Israel in 2.9 3.0 2.9 2.9 3.0 2.8 2.8 2.8 2018 averaged nine days, the main tourist seasons being March 2.0 through May, and October- 1.0 November. Estimated income 0.0 from tourists in 2018 was 2010 2011 2012 2013 2014 2015 2016 2017 2018 NIS 22 billion compared with NIS 18.5 billion in 2017 and NIS 16.6 billion in 2016. The tourism industry constitutes 2.6% of GDP. Of the top ten countries of origin, growth in tourism from France, Italy and the UK in 2018 over 2017 exceeded growth compared to 2017 over 2016. Of the other countries, growth in tourism from Romania, Poland, Germany and the United States in 2018 remained positive, but was more modest compared with 2017. Tourist arrivals from China, Russia and the Ukraine declined in 2018; Chinese tourism, which grew by an impressive 43% in 2017, declined by 7.7% in 2018. Tourist arrivals from Russia in 2018 declined by 4.4% after grew by 24% in 2017. Changes in tourist arrivals from the leading countries of origin Tourist arrivals from the Ukraine also posted a China Source: CBS Romania decline of 6.1% in 2018 Ukraine after growth of 11% in Italy Poland 2017. UK Current 'emerging' Germany Russia countries of origin are France India, the Czech Republic, USA Brazil and Hungary. -50% 0% 50% 100% 150% 200% 250% 2018 Vs. 2016 2018 Vs. 2017 2017 Vs. 2016 Strategy and Policy Administration | Ministry of Tourism January 2019 Israel's Tourism Industry – 2018 Annual Summary Hotel revenue in Israel for the first nine months of 2018 totaled NIS 9 billion (NIS 3.6 billion consisted of revenue from tourists), Revenue in hotels, NIS billions, Jan-Sep data 2016- representing 8.6% real growth (beyond the 2018 Consumer Price Index) compared to the Source: CBS 10 9.0 same period in 2017. 8.2 7.6 8 Revenue growth reflects an increase in real 5.4 6 4.8 5.0 terms of 11.5% in tourist person-nights and 3.6 of 6.7% in Israeli person-nights, events and 4 3.2 2.8 other hotel services. 2 Income from domestic tourism as a 0 I-IX/2016 I-IX/2017 I-IX/2018 percentage of total income from hotels is highly significant on a national average: From tourists From Israelis Total 60% of revenue derives from Israeli person-nights, events and other hotel services, and 40% from tourist person-nights. Revenue from tourists as % a of total revenue in However, segmentation of revenue data by hotels by city Source: CBS city indicates that hotel income in Jerusalem 69% and Tel Aviv is largely reliant on foreign Tel Aviv 68% tourists. In 2018, 69% of hotel revenue in Tel 65% Jerusalem 64% Aviv and 65% of hotel revenue in Jerusalem 41% came from tourist person-nights. Dead Sea Tiberias 34% Source: CBS 20% and Eilat hotels rely on domestic tourism and Dead Sea 21% are less sensitive to changes in tourist 2018 2017 Eilat 8% arrivals. 9% 0% 20% 40% 60% 80% Revenue from tourist person-nights by city as % of total Two thirds of revenue from tourist person- Source: CBS nights were earned by hotels in Tel Aviv (34%) and Jerusalem (31%). Tourist person-nights in 20% 4% 31% Tiberias hotels constituted 6% of the total. 6% Eilat earned only 5% of the revenue from 5% 34% tourists and the Dead Sea 4%. Jerusalem Tel Aviv Eilat Tiberias Dead Sea Other Strategy and Policy Administration | Ministry of Tourism January 2019 Israel's Tourism Industry – 2018 Annual Summary Jerusalem, Tel Aviv and Tiberias are the cities most visited by tourists in Israel Based on the figures for tourist The cities most visited by tourists (tourist person-nights in hotels, thousands) person-nights in hotels, Jerusalem is the city most visited by tourists in Source: CBS Netanya Israel. Tourist person-nights for the Nazareth first three quarters of 2018 Dead Sea amounted to 2.8 million compared Q1-Q3/2018 Q1-Q3/2017 Eilat with 2.5 million for the same period Toberias in 2017. Tel Aviv posted a more Tel Aviv modest increase; 2 million person- Jerusalem nights for the same period in 2018. 0 500 1000 1500 2000 2500 3000 As aforesaid, Jerusalem saw the sharpest rise. There was also a substantial increase in Hotel room occupancy in percentage terms Source: CBS hotel room occupancy in Jerusalem, Tel 80% Source: CBS Aviv and Tiberias. Hotel room 75% 70% occupancy in Jerusalem rose 65% dramatically from 53% on average in 60% 2016 to 70% on average for the period 55% 50% January to November 2018. In Tel Aviv, 45% hotel occupancy rose from 70% to 76%, 40% while Tiberias saw occupancy rise from Jerusalem Tel Avia Dead Sea Eilat Tiberias 55% to 65%. 2013 2014 2015 2016 2017 I-XI/2018 Hotels in Israel by region, as at June 2018 (source: CBS) Number of hotels Number of rooms Jerusalem District 93 11,578 Tel Aviv District 94 10,628 Northern District 87 9,795 Haifa District 26 2,381 Southern District 83 17,043 Central District 30 2,862 Total 413 54,287 Strategy and Policy Administration | Ministry of Tourism January 2019 Israel's Tourism Industry – 2018 Annual Summary Distribution of tourists according to purpose of visiting Israel, Source: 2018 tourist survey Business 9% Exhibitions & conferences 1% Leisure 14% Medical treatment 1% Other 2% Religion and pilgrimage 29% Studies & research 1% Taglit-Birthright 3% Tour the country 19% Visit family & friends 22% 0% 10% 20% 30% 40% Distribution of tourists according to religion Source: 2018 tourism survey 3% 2% 12% 22% 61% Jewish Christian Muslim Unaffiliated other Tourism industry The tourism The average One in every Income from tourism estimated to industry's constitutes 16% of constitute 2.6% of amount spent by three tourists service exports and contribution to the GDP a tourist in visits Israel as 7% of all exports of labor market: part of an goods and services 133,000 employed Israel: $1,420 organized group Strategy and Policy Administration | Ministry of Tourism January 2019 .
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