Israel’s original $488 billion economy has reportedly buckled as the war with Hamas sends shockwaves and boycott movements through businesses.
The impact of the Hamas-Israel conflict on Israel’s finances has not gone unnoticed by civilians who are witnessing whole sectors collapsing into crisis.
Construction and food services are amongst the industries that have been hit the hardest.
Out of the 1,680 Israeli businesses that were surveyed, more than 70 per cent of them, reported that they had seen a drop of more than 70 per cent in revenue.
Businesses have been endangered by the conflict on a scale that is similar to the effects of the COVID-19 pandemic.
Data analysis shows that hundreds of businesses have inherently collapsed, as full-time workers have either been drafted into the Israeli Defence Force (IDF) or forced to shelter and relocate to different regions of Israel.
It has been recorded that around 11 per cent of Israeli businesses across the nation lost more than 21 per cent of their workers to the IDF.
The number of reservist soldiers who have chosen to trade their jobs for the military, measured at 350,000, represents eight per cent of Israel’s entire workforce.
Customer demand has also decreased dramatically, leaving large organisations and companies with little choice but to shut down.
According to a statement published by the Central Bureau of Statistics last month, around half of the businesses in Israel reported a significant decrease in profits amid Israel’s war with Hamas.
To conquer the financial strains on the economy, Israeli Prime Minister Benjamin Netanyahu has promised to form an “economy under arms”.
In a statement, that set out to reassure Israeli companies with cash transfers, Netanyahu said: “My guidance is clear: we are opening the taps, pumping money to everyone who needs it.”
“Over the past decade we built a very strong economy and whatever economic price this war exacts on us, we will pay it without hesitation,” he added.
While some company leaders have welcomed the government’s business aid donation, the eligibility criteria have been criticised for being too strict.
In regard to the aid package being futile for larger companies, Ron Tomer, the Head of the Manufacturers’ Association of Israel, slammed the government for “abandoning its people”.
Pointing the finger at Netanyahu for delaying the government aid going to big businesses, Tomer added: “I would expect the country to support me when I’m trying to help people. I’m not sure we’re going to have a safety net.”
Israel’s Atlas Hotels recently sent out an unexpected email to its most loyal customers, urging them to evoke sympathy for the company that is on the brink of closure.
The desperate email asked the loyal consumers for generous donations to save the business from total collapse.
Atlas Hotels has also opened its 16 luxury hotels to 1,000 Israeli evacuees who were forced to flee southern parts of Israel after Hamas’ unprecedented on-the-ground massacre and capture of Israeli civilians.
In an effort to protect the civilians from Hamas missiles and Hezbollah airstrikes, launched from the southern border of Lebanon, approximately 126,000 people have been displaced from the north and south of Israel.
Atlas Hotels said that the pleading email came as a response to Israel’s right-wing government refusing to reimburse the costs for the hospitable hotel offering,
According to Lior Lipman, the Operations Manager for Atlas Hotels, the company “asked suppliers, contacts abroad, our employees and the Atlas A-list — our best customers — for help”.
The financial request was orthodox and blunt, said Lipman, adding that the message ultimately told the customers: “If we can’t fund ourselves, the business will collapse.”
