Wednesday, July 16, 2025
(When easyJet announced that its Israel operation would remain blacked out until at least 29 March 2026, it pulled almost a million annual Tel Aviv seats in one fell swoop.) For the customers and the wider visitor economy, the decision adds a pinch on top of a war-year capacity hole that has already gripped wallets and bled hotel occupancy from Eilat in the south to the Galilee in the north.
A Sellers Market Changed Around To A Travellers Market
When it comes to the consumer, the most direct difference is the cost of a ticket. Economy class round-trip tickets on flights between Europe and Israel have shot up, with highs on some routes exceeding US $2,500 during peak travel seasons. The surge in passengers is simple supply and demand arithmetic: easyJet out, other airlines dialling back – and Israeli carriers taking off with near-monopoly loads. El Al, Arkia, and Israir have experienced unprecedented passenger load factors, a statistic that has left consumers no choice but to pay through the nose or scrap their plans altogether.
Riders are also contending with a slimmed down route map. EasyJet’s decision scraps budget connections to a number of key European cities — including London, Amsterdam, Berlin and Basel, Geneva and Milan — and leaves holidaymakers forced to rely on expensive direct flights with Israeli carriers, or long connections through regional airports. The sting is most keenly felt by migrant families or city-break travellers, who frequently schedule their visits months in advance, making plans around school and holiday dates. Many are now delaying or going elsewhere, drying up Israel’s historically loyal stream of visitors.
The Invisible Costs: Uncertainty, Insurance And Lost Plans
On top of higher fares, travelers face softer but significant sources of pain. Government travel advisories from the U.K. and U.S. warning against non-essential travel to Israel limiting the availability of coverage for travel insurance, or making it expensive. Travellers are now forced to search for “high-risk” policies, or resort to travelling without insurance — a risk many can ill afford to take.
Airlines that continue to fly to Tel Aviv warn passengers that they might make last-minute flight changes or cancel flights if regional tensions flare, leaving consumers trapped in a cycle of uncertainty. EasyJet customers, meanwhile, have been wrestling with trying to get their hands on voucher refunds dating back to 2023. While customers are legally owed cash refunds, many have accepted vouchers or credit because of long delays, only resulting in another wave of dissatisfaction and brand disloyalty.
Tourism Numbers Inch Upward—Yet Remain A Shadow Of 2019
The bigger economic picture reflects those individual grievances. Although Israel’s tourism numbers have inched up modestly in recent weeks, the overall number of visitors is still dramatically lower than it was before the conflict. Having previously been expected to bounce back quite fast after COVID, conflict-related interruptions have set back projections for full recovery to at least 2027.
The link is the linchpin for tourism development. Budget airlines like easyJet tend to lure first-time visitors and younger, budget-conscious travelers who spend money in local markets. Every suspended flight is a direct hit at hotel bookings, tours, meals and other businesses throughout the country.
Counting The Shekels
State revenue from official tourism has declined steeply since the conflict started. Revenues from incoming tourism have dried up, resulting in layoffs of affected workers in hotels, cut hours for hospitality workers, drops in restaurant revenues, and lower payments to municipal coffers— all while Israel already shoulders burdensome defense costs.
The experts believe every million visitors lost can lead to over 10,000 jobs being held in suspension or being permanently lost in the hospitality and similar sectors. Israeli domestic tourism has also been hit because, with airfares through the roof to foreign destinations, fewer Israelis have money to blow on short weekend getaways in the country.
Winners In A Distorted Market
There are some short-term winners: Israeli national carriers like El Al have reported high profits on fewer competitive routes. Some boutique hotels that cater to business and essential travel have held up nicely in terms of occupancy. But these scattered good results are not growth for the age, they are temporary coping mechanisms for a distorted travel market.
Israel’s tourism plan for the future is very dependent on bargain-basement flying machines from mass markets with airlines of the low-cost carrier kind. Lack of airlines such as easyJet deprives the local economy of vital visitor revenue, which normally supports small businesses, local communities and cultural attractions.
A road To Recovery: Credibility, Capacity, Confidence
The return of tourism will hinge on three main factors: the return of geopolitical stability (credibility), enough airline routes and seats available (capacity), and reduced government travel warnings (confidence). To rebuild, the government might offer incentives to airlines, such as discounted landing fees or guarantees to share in any losses.
Until then, consumers are left staring down a stark choice: either overpay for the privilege of flying or stay put. And as long as affordable seats do not return, Israel’s struggling tourism economy will falter and continue to drag along. Browse’s absence might be a headline, but the bigger picture is a tale of how deeply intertwined, and essential, low-cost access to air has become in keeping the various aspects of Israel’s tourism industry alive. Restoring confidence among travellers after years of cancelations is not just reopening routes, it’s about restoring confidence in Israel as a safe, value and reliable destination – on all fronts.
