Ceasefire in the north: Will it revive the tourism industry?

Following the ceasefire on the northern border, the Israeli tourism industry, which has suffered a severe blow since October 2023, is showing early signs of recovery. However, the road to a full return to normalcy is still long, as most foreign airlines have yet to announce the resumption of flights to Israel.

Foreign airlines, seasoned by experience, are not rushing to make statements in the next 24 hours. First, they will wait to see which direction the wind blows and whether both sides will uphold the ceasefire agreement. Additionally, we must not forget that the major airlines that have already set a distant target date for a return in the spring of 2025 will have to redirect planes from other destinations—no simple task. And most importantly, many of the large airlines, especially American ones, are still waiting to see the outcome of the "Tibi Law" before they change their plans.

However, according to sources in the Israeli tourism industry, early signs of recovery are already visible. Chani Sobol, CEO of Deasenhauz Group, reports, "In the last two days, even before the signing of the agreement in the north and the ceasefire, we have seen a 50% increase in demand for business and private travel in the booking center and with travel agents." She adds, "The security calm is bringing back smiles to Israeli families. For the first time in a while, Israelis are planning their Passover and summer vacations alongside strong demand for flights and packages for Hanukkah and Christmas markets."

The main challenge remains the lack of sufficient flight availability. Nir Mazor, Marketing Director at Kishrey Teufa, addresses the potential for change: "The aviation stability potential resulting from the ceasefire brings with it great news. In the short term, we expect more airlines to return, which will expand the supply and positively affect flight prices." However, at present, most foreign airlines are still not operating flights to Israel, and no official announcements have been made regarding a change in this policy.

Oren Cohen-Magori, Marketing Director at Hashatiach Hame'ofef, also expresses cautious optimism: "This is good news for the tourism and aviation industry. We expect to see a gradual return of foreign airlines to Israel, which will lead to lower flight prices and an increase in traffic at Ben Gurion Airport. We are on the brink of the Christmas period, which this year coincides with the Hanukkah holiday and the New Year, a time especially loved by Israelis. I expect to see an increase in demand in the coming months, and we are already looking ahead to Passover and the summer season. I hope this news will lead to recovery in the industry and allow Israelis who love to travel to go on vacation at affordable prices."

Deasenhauz also reports a revival in the business tourism sector. "Another segment that has started to wake up and is expected to return with high intensity is corporate events, closed groups, and incentives," says Sobol, adding that this is "a segment that Deasenhauz has specialized in for many years and has received a boost in the last year with professional agents and producers."

Despite the encouraging signs, there is still significant uncertainty. The renewed demand for flights and vacations indicates hope among the public, but a full recovery of the industry depends on many factors, foremost among them long-term security stability and the return of trust from international airlines in the Israeli market. The expectation of lower prices will only materialize once foreign airlines fully resume operations in Israel, a process that may take some time.