– Israeli tourism sector suffering significant losses due to war on Gaza
– Latest data from Israeli Phoenix Gamma index shows:
– 73% decrease in tourism sector turnover
– 64% drop in transactions
– 26% decrease in average transaction amount
– 16% dip in turnover for restaurants, cafes, and fast-food establishments
– 1.5% decline in transactions for food establishments
– Nearly 40% decrease in turnovers and transactions for restaurants due to rocket barrages from Gaza Strip
– Many businesses in northern and southern occupied territories remain closed
– Potential loss of $50 billion, equivalent to 10% of Israel’s GDP, if war continues for five to ten months
– “Bank of Israel” cuts short-term borrowing rates for the first time in almost four years in response to weaker economy and reduced inflation due to war on Gaza
– Other impacts:
– Reduced inflation and weaker economy
– Central Bank cut its benchmark rate from 4.75% to 4.50%
– War imposing a daily cost of $220 million on Israel
– Potential cost to Israel could soar to $50 billion if war persists for an additional five to ten months
– Unemployment projected to rise in Israel due to economic consequences of ongoing war with Gaza