Travel & Tourism - Israel | Statista Market Forecast

In Israel, the Travel & Tourism market is expected to generate a revenue of US$2.77bn by 2024.
Furthermore, a CAGR of 10.14% is projected for the period between 2024 and 2029, leading to a market volume of US$4.50bn by 2029.
The largest market in this market is the Hotels, with a projected market volume of US$1.35bn in 2024.
By 2029, the number of users in this market is expected to reach 5.58m users.
The user penetration rate is predicted to increase from 57.3% in 2024 to 84.3% by 2029.
The ARPU is expected to be US$520.00.
Furthermore, it is estimated that 85% of the total revenue in the Travel & Tourism market will be generated through online sales by 2029.
When compared globally, United States is expected to generate the most revenue in this market, with a projected revenue of US$214bn in 2024.
Israel's tourism industry has seen a rise in religious tourism, with many pilgrims visiting important sites such as the Western Wall and the Church of the Holy Sepulchre.

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

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Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

Business trips
Other forms of trips (e.g. excursions, etc.)

Israel's Travel & Tourism market is experiencing a significant growth in recent years, attracting a diverse range of travelers from around the world.

Customer preferences: Travelers in Israel are increasingly seeking unique and authentic experiences, such as exploring historical sites, religious landmarks, and cultural attractions. Many visitors are also drawn to the country's renowned culinary scene, vibrant nightlife, and picturesque beaches along the Mediterranean Sea.

Trends in the market: One notable trend in Israel's Travel & Tourism market is the growing popularity of adventure tourism, with activities such as hiking, desert tours, and water sports gaining traction among travelers. Additionally, there is a rising demand for sustainable and eco-friendly travel options, reflecting a global shift towards responsible tourism practices.

Local special circumstances: Israel's unique geopolitical position in the Middle East plays a significant role in shaping its Travel & Tourism market. The country's rich history and religious significance attract pilgrims and history enthusiasts, while its modern cities like Tel Aviv appeal to those seeking a cosmopolitan experience. The diverse landscape, ranging from the Dead Sea to the Negev Desert, offers a variety of attractions for nature lovers and outdoor enthusiasts.

Underlying macroeconomic factors: The stability of Israel's economy and ongoing investment in infrastructure development have contributed to the growth of the Travel & Tourism sector. Government initiatives to promote tourism, such as visa facilitation and marketing campaigns, have also played a key role in attracting visitors to the country. Additionally, Israel's strong technology sector and innovative startups have positioned it as a hub for business travelers and digital nomads, further driving growth in the tourism industry.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.

Business or corporate travel is the tourism segment that focuses on people who travel for work or professional purposes and the related tourism services. This branch also includes the meetings industry, which refers to business events, conferences, congresses, trade fairs, and exhibitions. According to the World Travel and Tourism Council (WTTC), business travel accounted for 20 percent of the global tourism expenditure in 2021. In that year, it was estimated that business travelers spent more than 740 billion U.S. dollars worldwide, with Chinese tourists topping the ranking of the biggest business travel spenders.