web analytics
October 22, 2014 / 28 Tishri, 5775
At a Glance
News & Views
Sponsored Post
Meir Panim with Soldiers 5774 Roundup: Year of Relief and Service for Israel’s Needy

Meir Panim implements programs that serve Israel’s neediest populations with respect and dignity. Meir Panim also coordinated care packages for families in the South during the Gaza War.



Summer of War: The Cost of the Conflict on Israel

Cows in Be'er Tuvia, killed by a Hamas rocket.

Cows in Be'er Tuvia, killed by a Hamas rocket.
Photo Credit: Israel Dairy Farmers Association

The nearly two-month-long conflict with Hamas that has taken an economic toll on Israel, In addition to the military expenditures from Operation Protective Edge, physical damage to commercial facilities and the financial impact on industries such as retail and tourism have dragged the country into an economic slump, while the psychological cost on the children growing up in the south will take years to assess.

Nearly 3,000 claims for damage have been submitted to the Israel Tax Authority, which has so far paid some $20 million for direct damages and another $21 million for missed work days and other indirect damage. According to existing laws, workers in businesses located within 40 kilometers from the Gaza border get paid for the days they are absent from work, and their employers are eligible for full compensation from the government for these wages.

Israel’s Ministry of Tourism reports that tourism for July dropped by 26 percent from the same period last year. The sector, comprising about 7 percent of the Israeli economy, has lost at least $566 million, according to the figures.

The hardest-hit from the ongoing war are the businesses in the south of the country, which has sustained the bulk of the rocket fire from Hamas. Stores and restaurants have suffered from a drop in sales, while manufacturing facilities close to the Gaza border have been impacted by slowdowns in manufacturing due to incessant rocket alerts.

Israel’s Manufacturers Association estimated the total economic impact on Israeli manufacturers for the first round of the conflict at about 1.2 billion shekels, with factories in the south accounting for 40 percent of this figure, and facilities in Haifa and the center of the country incurring half the losses.

The agricultural sector has also experienced significant physical damage from the falling projectiles. Since the Iron Dome system is only activated when there is a projectile headed for a built-up area, thousands of rockets and mortars have landed in open fields, many of them belonging to farms. In addition to crop damage, there have been a number of incidents of injury and death of cattle, chickens and other livestock as a result of rocket impacts.

In an effort to assist businesses hurt by the conflict, Tourism Minister Uzi Landau proposed a tax exemption to Gaza-adjacent communities in the south. The move would be part of a comprehensive aid package consisting of tax breaks as well as reparations.

The latest war with Hamas came at a time when the Israeli economy was already in a slowdown, with a strong shekel decreasing exports and growth for the second quarter of 2014 falling to 1.7 percent from 2.8 percent in the first quarter. In response, the Bank of Israel decided on July 28 to cut its benchmark interest rate to a five-year low of 0.5 percent.

“We assess that economic activity is experiencing a sort of contraction, that began before the start of the Gaza operation,” the bank said Aug. 18. “This contraction will worsen in the current quarter, although some degree of rebound can be expected as soon as the hostilities cease.”

About the Author: Zeev Ben-Yechiel writes for Tazpit News Agency.


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

4 Responses to “Summer of War: The Cost of the Conflict on Israel”

  1. Karen Bryant says:

    If Hamas had its way there would be no businesses, there would be no Israel. Stand strong Israel.

  2. Karen Bryant says:

    If Hamas had its way there would be no businesses, there would be no Israel. Stand strong Israel.

  3. Abra Berkson says:

    Someone needs to make an app for Israeli goods big and small. We will buy!

  4. John Dyer says:

    god bless israel

Comments are closed.

SocialTwist Tell-a-Friend

Current Top Story
Israel's Deputy Ambassador to the United Nations David Roet, at a UNSC meeting held July 22, 2014 regarding the Palestinian Arab-Israeli conflict.
Israel Attempts to Insert Reason into UN Debate About Middle East
Latest News Stories
Chief of U.S. Homeland Security Jeh Johnson

Visitors from Ebola-stricken West African nations will be required to enter the U.S. from one of only five airports.

Israel's Deputy Ambassador to the United Nations David Roet, at a UNSC meeting held July 22, 2014 regarding the Palestinian Arab-Israeli conflict.

Israel’s UN ambassador refuted secretary-general’s hackneyed and false understanding of instability in the Middle East.

The mortar, which hit Israel on Tuesday morning, did not cause any injuries or damage.

Route for weapons shipment to Gaza from Iran.

After lying in coma for months, 83-year-old Ayatollah Mohammad Reza Mahdavi Kani has died, Iranian media reported Tuesday.

A radicalized Canadian convert to Islam rammed soldiers in what may have been an act of terrorism.

PA unity govt chairman Mahmoud Abbas raises the penalty for selling land to a “hostile nation” (Jew).

Israel’s government is recruiting citizens to help combat the Ebola virus epidemic in West Africa.

The Beach Boys aren’t coming to Israel next month…

The Jerusalem Light Rail has finally instituted a ‘zero tolerance’ police towards Arab violence against its trains.

A 2,000 year old stone fragment bearing an official Latin inscription dedicated to the Roman Emperor Hadrian is found in Jerusalem.

The woman’s father and other ISIS members stoned the woman to death for adultery.

Hamas has created a museum exhibit, currently showing at al-Aqsa University in Khan Younis, Gaza. Hamas is showing off its weapons and propaganda pieces from this past summer’s war, Operation Protective Edge.  

A bill that would end the control of the Chief Rabbinate over conversions to Judaism in Israel was nixed Monday by PM Netanyahu.

Haaretz smears U.S. terrorism expert for being a Republican and friend of Sheldon Adelson.

Leslie W., 48, and his partner Akiwa H., 56, are charged with having sold more than 88,000 pounds of non-kosher meat for a marked-up price.

More Articles from Zeev Ben-Yechiel / Tazpit News Agency
Dr. Asaf Eshbel of Ziv (Sieff) Hospital with an injured boy in the Syrian conflict.

A 12-year-old Syrian boy with injuries to his arms, leg, and eyes, was carried by donkey, and brought to Israel for medical treatment by his brother…

Hussam Hassan Qawasme, the Hamas mastermind behind the June kidnapping and murder of three Israeli teens, has been indicted.

“I don’t see a way out for the court from dealing with this case. For the first time they have the jurisdiction to deal with Hamas war crimes in Gaza.”

The body of 1st Sgt. Shachar Shalev was laid to rest this afternoon in the cemetery in Hipsin.

The recent war in Gaza is not expected to inflict any lasting damage on economic performance.

The investigation shed light on the movements of the drug traffickers operating under Hezbollah’s direction in Lebanon and Israel.

Printed from: http://www.jewishpress.com/news/breaking-news/summer-of-war-the-cost-of-the-conflict-on-israel/2014/08/25/

Scan this QR code to visit this page online: