War Tourism? People Still Traveling to Israel

July 22, 2006 — -- As thousands of Americans in Lebanon learned this week, a war zone is not where you want to be.

The conflict between Israel and Hezbollah militias in Lebanon has all but wiped out tourism in both countries. Nearly two million visitors -- spending $2 billion -- were expected in Lebanon this year, and Israel was on track to a record three million foreign visitors … until now.

The U.S. State Department is warning Americans not to travel to either Israel or Lebanon.

And yet, almost incredibly, some people are still going to Israel.

Stuart Katz, a managing director for Israir Airlines, which flies between New York and Tel Aviv, cancelled his trip to Hawaii next weekend because he's going to Israel instead.

"One of the motivating factors for us to go is to stand with the people of Israel in Israel," Katz said.

Israir has slashed fares to entice Americans to visit Israel.

"That has stimulated the market," Katz said, "not only with bookings, but it has people talking that, 'You know what? It's okay to go.' "

The long-term effects of a war or a terrorist attack on tourism can vary wildly. Tourism to Spain fell after the Madrid train bombing, but recovered in a matter of weeks. The same thing happened after the London subway bombings last year.

Foreigners lured by dirt-cheap airfares and hotel rates returned to Bali following the 2002 terrorist attacks, but to nowhere near previous levels.

Kevin Doyle of Conde Nast Traveler said Israel's tourism will bounce back once the current conflict is over.

"They may avoid buses," Doyle said. "They may avoid nightclubs, but they will go to stay in resorts, where they know there's security and to see the historic sites where they feel safe."

It may be harder for Lebanon to recover. Beirut had finally made it back as a major tourist destination following a 15-year civil war. Now, much the country is in ruins all over again.

ABC News' Ron Claiborne reported this story for "Good Morning America."