The Israeli newspaper Calcalist said that the technology sector in Israel faces a new challenge embodied in the shortage of flights and the difficulty of accessing global markets, with escalating security and political tensions in the region.
The crisis is escalating – according to Calcalist – at a time when most foreign airlines, such as United and Delta, have stopped operating their flights to Israel, leaving El Al as the sole operator of direct flights to the United States, which has led to a significant increase in ticket prices and cost overruns. Travel thousands of dollars.
Speaking to Calcalist, a startup official said: “Flights are not just a means of transportation for us, but rather a lifeline for business continuity, especially when it comes to direct communication with investors and customers in global markets.”
High costs of accessing global markets
Against the background of this situation, technology companies are facing difficulty in managing their business operations abroad, as many startups and major technology institutions in Israel depend on the ability to move quickly to meet the needs of customers and investors, according to the newspaper.
Leed Agmon, Vice President of Insight Partners, points out that his company was forced to transfer a number of its employees to the United States to meet market needs. He said: “Virtual communication is often not enough to solve problems, especially when it comes to providing technical support or negotiation.” “For new deals, we have to meet customers face to face, and this requires quick and regular trips, which has become a major challenge today.”
“Israel is rapidly becoming a transportation ghetto, where the situation has never been like this before,” Eran Tendler, vice president of Palo Alto Networks, told Calcalist. “It is true that security complexities play a role, but there must be a balance to maintain business continuity.” “.
He adds: “We need policies that support the transfer of employees and their attendance at conferences in the United States, where our most vital activities are. If the situation continues as it is, it will be difficult for Israel to maintain its status as an international development center.”
Calls for government intervention
As technology companies become increasingly concerned about the decline in competitiveness in light of the current situation, calls have escalated for the Israeli government to act and find sustainable solutions.
Officials believe that supporting domestic aviation or providing incentives for foreign airlines to return to the Israeli market could alleviate the severity of the crisis, the newspaper states.
A senior investor previously stated, “The technology sector is in dire need of direct communication with investors and customers.”
He warned that some small and medium-sized companies may move their entire operations outside Israel if the government does not intervene to provide solutions that support regular and safe movement.
For his part, Eitan Cohen, CEO of a start-up company in Israel, confirmed in an interview with the newspaper that the sector cannot bear the pressure resulting from high costs and the difficulty of travel.
He says, “Most of our workers find themselves between two options: either to stay and work remotely, or to move temporarily to the United States. If the government does not take serious steps to support this sector, many startup companies will be forced to make fateful decisions to maintain their continuity.”
