"Israeli students sit to the tall tree."
Translation:A magas fához izraeli diákok ülnek.
Yes, -hoz conveys movement toward a thing. "Israeli students sit down by the tall tree" may be the most natural way to say it in English, which often just doesn't specify motion as explicitly and precisely as Hungarian does. But by using "sit down" in English (as opposed to just "sit") we do convey the motion or change of state which the Hungarian sentence conveys by means of the directional ending.