Israel tourism rebounds as flights, hotels return

Published on Aug 29, 2025, 2:22 pm CDT

6 min read

Israel tourism showed fresh momentum in 2025 despite the Gaza war, with U.S. visitation rising 16.7 percent from January through June compared to 2024, and overall foreign arrivals recovering. The U.S. Department of State lowered Israel's advisory to Level Three on July 13, reflecting improved, though still complex, conditions. Airlines are rebuilding capacity into Ben Gurion Airport (TLV), and major hotel groups are investing again, led by Fattal and Isrotel. "Israel's tourism industry has shown remarkable resilience and progress," said Yoram Elgrabli, Israel's tourism commissioner for North America.

Key Points

Why it matters: Israel tourism is recovering as safety guidance eases and capacity returns.
Travel impact: More Tel Aviv flights and Israel hotel openings should improve options and pricing.
What's next: Delta restarts JFK-TLV on September 1, and new luxury rooms open this fall.
Airlines: United is flying twice daily EWR-TLV, with broader U.S. connectivity.
Hotels: Fattal invests $440 million, Isrotel's Kayma opens at the Dead Sea.
Policy: U.S. advisory at Level Three, travelers should still review risks.

Snapshot

Through the first half of 2025, Israel saw steady recovery in inbound travel. U.S. visitation grew 16.7 percent versus the same period in 2024, while total foreign arrivals also trended higher. On the air side, United resumed Newark Liberty International Airport (EWR) to Tel Aviv with two daily frequencies in late July. Delta is scheduled to relaunch John F. Kennedy International Airport (JFK) to Tel Aviv on September 1 with daily service. On the ground, Fattal Hotels committed $440 million across eight properties, including April's Bazar Hotel opening in Jaffa, and Isrotel will debut the 44-room Kayma on the Dead Sea this September. A Leonardo DiCaprio-linked eco-hotel at Herzliya Marina cleared planning approval for a 365-room build.

Background

Israel's inbound tourism cratered after October 2023, when U.S. carriers suspended Tel Aviv routes. During early 2025, airlines tested phased resumptions but paused again amid regional escalations. By July, conditions stabilized enough for United to restart twice-daily Newark service, and Delta confirmed a September restart from New York. The U.S. lowered Israel's travel advisory to Level Three, which still urges caution due to terrorism and civil unrest but no longer instructs Americans not to travel. Hotel development regained momentum across Tel Aviv, Herzliya, Jerusalem, and the Dead Sea region. Together, added lift and new rooms are restoring traveler choice, even as operators maintain flexible plans in case security conditions change.

Latest Developments

Tel Aviv flights return from major U.S. hubs

United reinstated two daily EWR-TLV flights beginning July 21 and July 22, improving connectivity for North American travelers through Newark Liberty International Airport (EWR) into Ben Gurion Airport (TLV). Delta will resume daily JFK-TLV on September 1, operated by Airbus A330-900neo aircraft, restoring a key New York gateway at John F. Kennedy International Airport (JFK). The stepwise rebuild of U.S.-Israel capacity should shorten connection times, stabilize schedules, and gradually ease fares as more seats come online, though pricing will still track security-driven demand swings. Airlines continue to coordinate with authorities and monitor conditions closely, so travelers should remain flexible with itineraries and allow extra buffer on long-haul returns.

Israel hotel openings accelerate in 2025

Fattal Hotels committed $440 million across eight properties nationwide, signaling a pivot back to growth and an upscale push. In April 2025, the Bazar Hotel opened in Jaffa with a boutique design that blends historic restoration and modern interiors. Isrotel's Kayma, a 44-room adults-oriented retreat on the Dead Sea shoreline, is scheduled to open in September with an infinity pool and spa as part of the Isrotel Exclusive collection. The pipeline provides more inventory for peak periods, widens luxury options beyond Tel Aviv, and supports itineraries that combine city stays with desert and spa experiences.

Green-light for Herzliya Marina eco-hotel

A luxury eco-hotel at Herzliya Marina, approximately nine miles from Tel Aviv, received final approval from the Tel Aviv District Planning and Building Committee. The 14-story project is planned for 365 rooms with sustainability features and public-realm upgrades along the marina. The development, involving Israeli partners and actor Leonardo DiCaprio as a minority stakeholder, underscores private-sector confidence in Israel's hospitality outlook. With Herzliya's tech-hub profile and beachfront location, the hotel targets premium leisure and business travelers once regional stability improves, complementing Tel Aviv's core five-star set.

Analysis

The recovery narrative in Israel rests on three pillars, policy, airlift, and product. First, the U.S. advisory move to Level Three reduces friction in corporate travel approvals and boosts consumer confidence, even if risk considerations remain. Second, the return of core U.S. trunk routes, Newark and JFK to Tel Aviv, re-anchors transatlantic connectivity. United's two daily frequencies from EWR restore network depth, and Delta's JFK relaunch rebalances capacity between alliances. As additional seats return, Tel Aviv flights should show more stable schedules and, over time, more competitive fares, particularly outside peak holidays. Third, hotel investment is broad-based, from boutique openings like Bazar in Jaffa to Isrotel's Kayma on the Dead Sea and the planned Herzliya Marina eco-hotel. This mix diversifies inventory, supports higher average daily rates in prime zones, and expands options beyond Tel Aviv city center. The risk, renewed regional escalation, could quickly disrupt air service and suppress demand. For now, however, travelers, tour operators, and suppliers have a clearer runway for late 2025 itineraries.

Final Thoughts

Israel tourism is not fully back, but the trajectory is constructive. With Tel Aviv flights returning, an advisory shift to Level Three, and tangible Israel hotel openings, the destination is moving from survival to rebuild. Travelers should remain flexible, monitor advisories, and book refundable rates where possible. If conditions hold, the combination of restored lift and fresh product can sustain a measured comeback into early 2026, with broader gains concentrated in urban Tel Aviv, the Dead Sea, and coastal Herzliya. For now, the outlook supports a cautious, confidence-building return to Israel tourism.