IVIS Country Analysis – Israel

ISRAEL

249,034 Arrivals in the United States

Loss of 14.063 over 2002, -5.3%

9.0% of all Israeli Long-Haul Travel

-8.1% over 2002

SUMMARY

In 2003, total outbound travel from Israel increased 2.9 percent from the year before and generated more than 2.9 million arrivals to destinations worldwide. Similarly, Israeli long-haul travel increased three percent in 2003 over 2002. Arrivals to the United States from Israel declined for the third consecutive year, down 5.3 percent over 2002. The decline in Israeli travel to the U.S. in 2003 caused the U.S market share (MSI) also to decline 8.1 percent to nine percent of the long-haul Israeli travel market.

After two years of decline, Israel's economy emerged from recession in 2003 and expanded 1.1 percent year-over-year. Real private consumption also grew 0.7 percent over 2002. Consumer prices were nearly flat, with inflation at just 0.7 percent in 2003. On-going violence in the region remains the biggest threat to Israel's economy and to travel.

The United States faces some stiff competition to be the most popular country destination for Israeli long-haul travel. In 2003, Egypt was the most popular long-haul destination for Israel, garnering one fifth (19.1%) of the market. Italy was second with 12.4 percent. The U.S. was a distant third, receiving nine percent of the market, followed by the UK (5.9%). Egypt and Italy both gained share of the Israeli long-haul market in 2003, while the U.S. and the UK both lost share.

Source: Global Insight

Europe was clearly the leader as a regional destination for Israeli long-haul travel, undoubtedly benefiting from its proximity to Israel. In 2003, Europe captured nearly two thirds (64.4%) of all long-haul travel from Israel, about seven times the share that the United States received (9.0%). With 20.2 percent of the long-haul travel market from Israel, Africa was the second most popular regional destination in 2003, similarly benefiting from the short distance to Israel. Asia was well behind, receiving only 3.1 percent of the market. Among these regions, only Africa gained share of the long-haul travel market from Israel in 2003.

Source: Global Insight

Some analysts believe that Israeli travel to the United States is greater than the official 249,034 visitors reported because a large number of Israelis hold dual passports that allow them to enter the U.S. as American citizens.