Extensive tourists cancellations due to ongoing escalation in Israel
The toll on the Israeli economy due to the recent round of escalation is beginning to materialise. According to Israeli media, tourists are cancelling their reservations domestically and internationally. Foreign tourists are also abandoning their travel plans as they fear they will get caught in a prolonged period of escalation.
Restaurants and leisure activities witnessed a sharp decline in activities which is expected to last. Jews and Arab business owners alike are experiencing the disruptions.
As mentioned earlier, a war of attrition by Iran & Co will most likely terminally hit the Israeli tourism and hospitality sector. Airlines, hotels, restaurants and their supply chain providers will be the biggest losers from such a situation if it occurs. Unemployment may increase as a result, putting pressure on Israel's economic health.
Business implications
Loss of revenues is almost certain to hit the tourism and hospitality sectors. Staff safety and security, especially of internationals, will be harder to ensure. Supply chain disruptions and potential price fluctuations will reduce business viability in the long term.