The Israeli economy has suffered huge losses due to the ongoing war on Gaza, as dozens of airlines have suspended flights to Tel Aviv, and the tourism sector has received a severe blow.
The Israeli website Calcalist described the state of the tourism sector as being in a state of collapse and fraud, especially in the Galilee and the northern regions, which no longer receive any visitors.
According to the Central Bureau of Statistics, 288,000 tourists entered Israel between January and April 2024, compared to 1.3 million who visited the same period in 2023, which means that the economic sector lost 80% on an annual basis.
Israel received 3 million tourists the year before the war, who pumped up to 5 million dollars into its economy, before the war caused the cessation of work in most sectors related to tourism.
Most international airlines have suspended their flights to Israeli airports, while many hotels have been crowded with people displaced from places of fighting.
A law was activated – immediately after the start of the war – allowing small and medium-sized companies in Israel to receive compensation covering fixed expenses and part of salaries between October and December of last year, provided that specific criteria are met.
The compensation was estimated at $300 million, received by more than 33,000 companies and establishments. But the law, which expired at the end of last year, created a complicated situation, as it relied on Israeli army maps to determine the combat zones covered by the compensation.
The law does not grant compensation to companies that go beyond the combat zones defined by the army, even by one kilometer, which has created a state of conflict as company owners demand continued compensation so that Israel’s infrastructure does not collapse in light of the declining chances of the tourism sector returning to what it was before the war.
