Israel is on track to making 2012 its best ever year for tourism despite its ongoing dispute with Palestinians living in neighbouring Gaza Strip.

Israeli authorities have forecast a 20 percent fall in tour groups and overseas visitors for the remainder of the year. But Minister of Tourism, Stas Misezhnikov, says the latest hostilities have failed to extinguish international travel to the country.

With the nation “handling all scenarios” with aplomb, Mr Misezhnikov said there was “neither panic nor overt concern” within the industry; tour itineraries had been adjusted efficiently while there had been no flight cancelations, he added.

Despite the claims, officials in the country’s south say the flow of tourists has dwindled since the conflict arose, expecting it to take months to recover.

Hoping to once again lure visitors to the region, the Tourism Ministry is planning to launch an advertising campaign encouraging more travel to the country's south, Haaretz reported.

Expected to launch within two weeks, the marketing biltz will include videos of tourists sharing positive experiences in the country and will be carried out by Israel’s tourism bureaus in Russia, Western Europe and the US.