90 hotels closed, thousands of workers laid off: Israeli media
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Israeli media outlets are reporting troubling figures in the tourism and hotel sectors, which are shutting down due to the ongoing war, with thousands of workers being laid off.
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People ride their bicycles on a car-free highway during Yom Kippur in 'Tel Aviv', occupied Palestine, on October 8, 2019. (AP)
Israeli Channel 12 reported concerning data within "Israel," revealing that one in five hotels in the occupied territories have been shut down since October 7, 2023.
According to reports, 90 hotels have closed so far, with 20% remaining inactive, leading to the dismissal of thousands of workers.
Israeli media also noted that the airlines canceling flights to "Israel" have had a significant impact on various sectors, particularly tourism and the hotel industry.
In this context, media stated that thousands of families who depend on the hotel sector in "Israel" are now forced to find new sources of employment. It added, "We are talking about a decline of more than 85% in inbound tourism to Israel. There is no real tourism."
As the war rages on, "Israel's" economy is sinking. Earlier last month, passenger traffic at Tel Aviv’s Ben Gurion International Airport dropped by 43% during the first nine months of 2024 due to the escalations and war on Gaza and the northern front after October 7, which led many airlines to scale back or withdraw flights.
According to airport authority, the airport served 10.85 million international passengers from January to September, a decrease from 19.01 million in 2023.
With foreign airlines providing fewer services, more travelers are choosing Israeli carriers, which have seen traffic increase by up to 25%, according to the authority.
Since the outbreak of the war on Gaza, several airlines have frequently suspended and resumed flights to "Israel" on short notice. The escalations have further disrupted regional air traffic.
Sinking Israeli economy
On another note, a report published earlier in August noted that "Israel" now stands at a crossroads regarding the ongoing war on Gaza and confrontations with the Axis of Resistance, detailing that "every decision about the future will undoubtedly have significant economic consequences, especially considering that the projected budget deficit for 2024 is expected to exceed the forecast underlying the current state budget significantly," according to the Institute for National Security Studies (INSS) in "Israel".
The paper explores the economic impacts of three scenarios: continuing the war on Gaza, escalating tensions on the northern front, or securing an agreement that includes a captive release deal.
The INSS report predicts that In light of the current situation, the Israeli economy is expected to record only 1% GDP growth in 2024.
With "Israel’s" risk premium at 1.75%, continuing the war could worsen it due to rising security costs, increasing the deficit and debt-to-GDP ratio. This may lead to economic instability. That said, the INSS explains that continuing the current situation could worsen the risk premium due to rising security costs, increasing the deficit and debt-to-GDP ratio.
"Israel" may be perceived as economically unstable, reducing the appeal of its risk assets. For 2025, low growth is expected at around 1%, with ongoing high budget deficits to fund security, potentially raising the debt-to-GDP ratio to 75% and negatively impacting "Israel’s" credit rating.
