The industry in crisis. “There are virtually no customers”

– I open my store every other day, and I don't have any customer so often, sometimes I sell goods for 100-200 skekcles all day (about PLN 100-200- ed.). During the pandemic, the government helped a small business, and now we are on our own – noted Fajsel, who has been running a souvenir and devotional shop for over 20 years.

According to the Israeli Ministry of Tourism, in 2019 the country was visited by over 4.5 million foreign tourists, in 2023 there were 3 million, and in all 2024 – less than a million. The reason for the rapid breakdown of the industry is mainly war in the Gaza Strip, which broke out in the autumn of 2023 and its consequences.

The crisis particularly affected Palestinians, including the inhabitants of Eastern Jerusalem, where the Old Town is located.

80 percent operations were closed or limited in the Jerusalem Old Town. Businesses – according to a report of the United Nations Conference on Trade and Development (UNCTAD). Palestinians run hundreds of shops and restaurants, which are focused mainly on tourists and pilgrims. Jerusalem was the most visited place by foreign guests.

– There are practically no customers, and I still have to earn taxes and fees. There is almost nothing left for my family. If the war is not over and tourists do not come back, I will have to close the business, like many others in the Old Town – added Fajsel.

During the first year of the war, the losses of the Israeli tourism industry due to a decrease in the number of foreign guests amounted to 18.7 billion of shekels (about PLN 19.1 billion) – according to government statistics. The economy of Palestinian autonomy, which is not included in Eastern Jerusalem, is much more dependent on tourism. Before the war, this sector was responsible for 2-3 percent. GDP Israel and about 15 percent GDP of Palestinian Autonomy.

The crisis is particularly visible in Palestinian cities such as Bethlehem or Nazareth. – This is a tragedy for many families. The worst thing is that many young people worked in tourism, who now just have no other occupation – said a taxi driver with Bethlehem – Khalid.

The situation of Palestinians from the occupied west shore is worse by the fact that after the outbreak of war, Israel significantly limited them the possibility of entering their territory and strengthened border controls. Almost all of 150,000 Palestinians employed in Israel lost their work permit.

According to the Palestinian Statistical Office, GDP on the West Bank fell in 2024 by 19 %, and unemployment rate increased to 35 percent

– Young people who worked at the Jerusalem Old Town are trying to retrain. They transport food, become drivers of taxis, but this work is not enough. Tourism was a support of Palestinians in Jerusalem, because it gave work not only to sellers, but also bus drivers, people running hotels and guesthouses, guides, gastronomy employees – enumerated Mahmud, the owner of a souvenir shop.

During the Easter period, on the streets of the Old Town you can see pilgrims and tourists again, but, according to Mahmud, there are still much less than in the normal period before the war. – There was such a crowd on Christian holidays that it was impossible to go through. People from all over the world. Now they are still individual groups – noted the Palestinian shopkeeper.

– Where are you from? From Poland? Good morning, I invite you! – a waiter from one of the restaurants talked. He admitted that he had not had guests from Poland for a long time, and foreigners were served by many Russians, including Americans, Greeks, Italiansbut there are still much less customers than in previous years.

In 2019, Israel visited 157,000 Polish tourists, in 2024 – 6.5 thousand, and for the first three months of 2025 – less than 3,000

– Flights are more expensive, and there is all the time that war is going on, even if it is not visible here – said Beata from Poznań, who came to Israel for Easter.

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