Calcalist admission: Since the war with Iran, no one travels to the Occupied Territories

Pars Today – An Israeli newspaper acknowledged that the Israeli regime’s war with the Islamic Republic of Iran has seriously threatened its tourism industry and domestic economy.

The Israeli economic newspaper Calcalist has provided a comprehensive report on the unprecedented crisis facing the Israeli regime’s tourism industry.

Pars Today, citing Fars News Agency, reported that the Israeli economic newspaper Calcalist has covered the unprecedented crisis facing Israel’s tourism industry. According to the report, the ongoing war in Gaza and escalating tensions with Iran have had a direct and significant impact on the operations of the Fattal hotel chain, Israel’s largest hotel group, which serves as a benchmark for the country’s tourism sector.

Calcalist added that these critical conditions have forced the Fattal chain to significantly lower its annual revenue forecasts.

Hotel evacuations and sharp drop in occupancy

Calcalist reported that occupancy rates at the Fattal hotels within Israel fell to just 58% in the second quarter of 2025. In comparison, during the same period in 2023 and 2024, occupancy hovered around 72%. Notably, this timeframe traditionally coincides with a peak travel season, including spring holidays and Easter celebrations.

The Israeli economic newspaper noted that the sharp decline in hotel occupancy in the Occupied Territories clearly reflects the near-total absence of foreign tourists. Previously, this shortfall had been partially offset by accommodating domestic refugees, but this time even that measure has failed to stabilize the situation.

Heavy operational losses and hotel closures following war with Iran

The Hebrew-language newspaper reported, based on financial data, that the main operating profit of the Fattal company in Israel’s domestic market fell by 25% to 113 million shekels (approximately $30.5 million). Direct losses from the war with Iran in June alone were estimated at around 50 million shekels (\$13.5 million).

As a result of this crisis, some Israeli hotels have been forced to close temporarily, while widespread cancellations by tourists and foreign groups have surged.

Annual revenue forecast cut

According to new assessments, Israel’s Fattal hotel company has lowered its annual revenue forecast to a range of 8.1–8.3 billion shekels (approximately $2.18–2.24 billion). Its projected operating profit is estimated at 2.75–2.9 billion shekels (around $742.5–783 million), reflecting a significant decline.

Dark outlook for the return of foreign tourists

At the end of its report, the Israeli newspaper Calcalist emphasized that a rapid return of foreign tourists does not appear likely in the near future. It noted that the Fattal hotel chain faces significant challenges, and additional revenues from European hotels or real estate investment funds cannot compensate for the extensive losses in Israel’s domestic market.

According to Calcalist, Israel’s tourism industry, which had already been affected by regional tensions, now faces a deeper downturn, with no clear short-term prospects for recovery.