Tourism has become a global phenomenon and money generator for investors, service providers, auxiliary support services, regions and nations involved in the tourism business. The turbulent situation in Jerusalem occasioned by Israeli Palestinian crisis put euphoria in the mind set of tourists visiting the country. Thus, this paper aims at examining the effects of political stability on tourist loyalty in Jerusalem. A quantitative methodology was applied in this study and primary data was collected from 384 tourists who had visited Jerusalem. Results of the structural equation modelling found that political stability has a significant positive influence on tourist loyalty. The top contributing factor in the case of Jerusalem is Israeli risk, and as such, Palestinian tourism industry should greatly reduce the risk because tourists visiting Jerusalem are more concerned about safety and security. The results of this study will help Israeli-Palestinian tourism sector to undertake more efficient planning, marketing, advertising, and enhancing the overall management of their resources in Jerusalem. Tourism industry should focus on improving the positive image of Jerusalem to increase influx of guests, more revenue, and sustainability because successful tourism development is closely related to lower risk at a destination.