Arab Today, arab today israel economy hard pressed not crushed over gaza rockets
Last Updated : GMT 06:30:54
Arab Today, arab today
Arab Today, arab today

Israel economy hard pressed, not crushed over Gaza rockets

Arab Today, arab today

Arab Today, arab today Israel economy hard pressed, not crushed over Gaza rockets

Passengers check a departure time flight board
Jerusalem - AFP

The cancellation of European and US flights to Israel due to rocket fire is further harming tourism in a region already paying for fierce fighting in Gaza, experts say.
But while the hospitality trade and small businesses are suffering, the broader Israeli economy is unlikely to be affected by the conflict with Hamas, in which more than 1,700 rockets and mortar shells fired from the Palestinian territory have so far hit southern and central Israel, they say.
The US Federal Aviation Administration banned American airlines from flying to Tel Aviv's Ben Gurion airport for at least 24 hours from  Tuesday, and the European Aviation Safety Agency advised all carriers to avoid Tel Aviv "until further notice".
The Israeli Airports Authority, meanwhile, announced on Wednesday it would be opening the Ovda military airport, 60 kilometres north of Israel's Red Sea resort of Eilat, as an alternative to Ben Gurion for international carriers.
Treasury and tourism officials said it was too soon to determine the impact of the flight ban, but even before the move the fighting had been seriously dampening Israel's economy.
Former finance ministry director general Doron Cohen said the Israeli economy would remain down by 20 percent as long the fighting continued.
Most of the losses were being "suffered by small and medium-sized businesses in the south and the tourism industry nationwide", Cohen told Haaretz newspaper Monday.
Head of the Israel incoming tour operators association, Ami Etgar, told AFP they anticipated a shortfall of 35-40 percent in their July-August income.
"July and August have already been very negatively impacted, if there will be no flights to Israel the situation will surely worsen," he said.
Tens of thousands of Israelis have also been called up for reserve service, further slowing down operations and internal tourism.
And hotel bookings plummeted to 30 percent compared to the 70-80 percent typical in the summer, director-general of the Israel Hotel Association, Shmuel Tsurel, said.
"The loss of income to the entire tourism industry over July-September will reach over 2.2 billion shekels ($644 million, 478 million euros), of that over 500 million shekel in losses to hotels," he said in a statement.
- 'Resilient market' -
But Israel's macro-economy will most likely not be harmed by the current conflict, according to Rafi Melnick, a member of the Israeli central bank's monetary committee.
"The soft and immediate underbelly of the Israeli economy is always tourism, whenever such events happened in the past there were declines in the numbers of incoming tourists," he told AFP, noting flare-ups with Gaza and Lebanon's Hezbollah in recent years.
Melnick, a professor of economics at IDC college, near Tel Aviv, noted that previous short-term conflicts did not show up in any of Israel's main economic indicators, "not in the market's growth, in investments, in interest in high-tech, in exports".
"The Israeli economy has over the past years developed a certain resilience," said Melnick. "While these events are difficult from the humanitarian perspective, they don't have significant impact on the macro-economic picture."
"You can see that in the financial markets, which are always forward-looking," he said, noting on Wednesday the normal behaviour of the Israeli stock market and currency, both of which were slightly rising.
The finance ministry and the trades union federation meanwhile said Wednesday they had reached a formula to compensate businesses located up to 40 kilometres (25 miles) from the border with Gaza, where the bulk of the rockets and mortars are landing.
But even the battered tourism industry could bounce back to a certain extent if Israel invested in marketing once the violence ends and ahead of the autumn, when the main bulk of organised tourists arrive in Israel, Etgar said.
"Tourism to Israel had been on the rise, the operation has put an end to that. We still don't know how powerful this will be, it depends on when and how it ends, and how much Israel will invest in marketing," he said.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today israel economy hard pressed not crushed over gaza rockets Arab Today, arab today israel economy hard pressed not crushed over gaza rockets

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today israel economy hard pressed not crushed over gaza rockets Arab Today, arab today israel economy hard pressed not crushed over gaza rockets

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Fighters celebrate Raqa victory

GMT 06:07 2017 Wednesday ,18 October

Fighters celebrate Raqa victory
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Anoshka happy for reactions to her talk show

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:55 2017 Thursday ,12 October

Safaa Sultan happy for “Love School”

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:25 2017 Saturday ,14 October

Squeeze on UK health gives advanced

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday