Translation:Many Israelis go on vacation in Eilat.
Most literal translation of יוצא is "exit" or "go out"
So you would go out on a vacation. It can also mean depart, or leave, in certain contexts.
Eilat is the southern most city in Israel, and far from the main mass of population. It is usually warm year round and has a sea. Also, transactions in Eilat are duty-free.