Photo: SHUTTERSTOCK Despite low hotel occupancy remaining at 42%, data on overnight stays in Tel Aviv hotels for March shows a positive trend: for the first time since the war began on 7.10.23, the percentage of overnight stays from incoming tourism has crossed the 40% threshold.
The results reflect a change in the clientele mix and accommodation preferences in the city, with international tourists representing a significant portion of hotel stays.
The figure – 42% hotel occupancy in Tel Aviv hotels – is a relatively low number, but it indicates a stabilization process and even improvement compared to the previous autumn months, which saw a higher number of evacuees.
These data indicate a strengthening demand, especially from incoming tourism, which currently accounts for more than 40% of total overnight stays in Tel Aviv – a significant change compared to previous periods.
Additionally, the accommodation data presents a surprising picture regarding stay preferences.
Israeli overnight stays constitute about 54% of total bookings, with an average Israeli stay totaling just two nights; foreign tourist overnight stays increase to 46%, with an average stay of 4.83 nights, indicating a deeper interest and preference for longer stays in the city hotels.
In the greater Tel Aviv hotels, which are considered leaders in the hospitality sector in the city, an occupancy of 43% was recorded. Here the distribution is different: 59% of stays were by Israelis compared to 41% by foreign tourists. During this period, all hotels in greater Tel Aviv hosted 225,238 overnight stays, highlighting the improvement compared to the autumn months, during which lower occupancy was recorded due to the outbreak of the security crisis.
The CEO of the hotels in the greater Tel Aviv area, Oren Dori, explains: "It seems that the marketing campaigns for winter and spring, along with the ongoing and independent efforts of the hotels, have helped us achieve a significant relative increase in booking volumes. The updated data reflects a wide range of hotels with different characteristics, allowing diverse and personalized experiences for every guest."
In-depth data analysis reveals significant gaps between hotel categories. Level 1 Hotels: 32% occupancy; Level 2 Hotels: occupancy up to 52%.
Regarding the distribution of international tourism, a positive trend of return has been registered: American tourists make up 32% of the overnight stays, with an increase from the previous month – 29,582 overnight stays in March compared to 20,703 in February; French tourists account for about 10%, with overnight stays rising from 5,312 in February to 9,507 in March; the rest – British (5%), German (4%), and Russian (4%) – indicate an interesting change in mix, as a significant increase has been recorded since October 2023. Since the beginning of the year, Americans have maintained 32% of total overnight stays, while French, British, Russian, and German tourists contribute 9%, 6%, 4%, and 3% respectively – data that indicates a certain return of airlines and flight routes, and it is a notable sign of recovery in the tourism sector.
In conclusion, the latest data indicate a significant change in the composition of overnight stays in Tel Aviv, with an impressive increase in incoming tourism data and stable conditions in the city hotels. This trend holds hope for a more comprehensive recovery in the local tourism sector, with the combination of targeted marketing promotions and seasonal campaigns providing a diverse accommodation infrastructure depicting an optimistic future.
