Israeli Holiday Outbound Travel Boom Dents Local Fashion and Retail Sales

A massive exodus of Israeli travelers during the Tishrei holiday season dealt a blow to local retail sales, with fashion chains registering an average decline of 1.6% in revenues, according to data from RIS. Despite high flight prices, logistical bottlenecks at Ben Gurion Airport, and warnings of congestion, over 1.23 million Israelis traveled abroad in September alone—a 17% increase compared to September 2025 and an all-time record for the month.

The surge in outbound travel was propelled by the strengthening of the shekel, the return of foreign airlines, and pent-up demand for vacations. A strong local currency increased purchasing power abroad, making European retail prices particularly attractive compared to the domestic market. Consequently, shopping malls and open-air retail centers across Israel experienced softer foot traffic and reduced spending, especially in apparel and footwear.

While RIS data indicated a 2.6% drop in revenue per square meter in open-air commercial centers and a 0.1% slight dip in regional malls, some retail executives reported revenue plunges of up to 10%. Industry leaders noted that the heavy post-trauma psychological desire among Israelis to escape abroad, combined with favorable exchange rates, severely cut into domestic holiday shopping.

Additional factors weighing on holiday sales included unseasonably warm weather in September and early October, which hindered the sale of transitional and light winter collections placed on shelves. Furthermore, the close proximity of the High Holidays to the heavy spending period of the summer vacation and August further constrained consumer budgets, leaving households less inclined to splurge on domestic retail during the festive period.