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Wed Jul 23, 2014, 08:20 AM

Juan Cole: Gaza War Devastates Israeli Tourism Revenue, Points to Fragile Apartheid Future


By Juan Cole


A Hamas rocket hit and destroyed a house in Yahoud, a town only a mile from Ben Gurion Airport in Israel on Tuesday, raising severe alarm in among the international airlines and leading most of them to cancel flights to Tel Aviv. The US Federal Aviation Administration called for a 24 hour moratorium on US flights to Israel, and United Airlines, U.S. Airways and Delta Air lines said they would cease flying there “until further notice.” The European Aviation Safety Agency likewise cautioned European airlines from flying to Israel, and Lufthansa and other major carriers cancelled their flights.

Israel’s Transportation Ministry, in its charming way, stridently denounced the airlines as accomplices of terrorists, saying “there is no reason whatsoever that American companies would stop their flights and hand terror a prize…” In fact, the downing of MH17 over eastern Ukraine is obviously the context for the airlines being spooked. And, if a rocket can land one mile from the airport, it can land on a plane at the airport just as easily.

Israeli tourism brought in $11 billion last year, some 4.5% of its nominal GDP. Tourism employs 100,000 workers, two-thirds of them in the hotel industry. In other words, a full loss of tourism would cost Israel $30 mn a day and could idle nearly 3% of the country’s workforce. (Since El Al is still flying, there hasn’t been a full loss of tourism, but El Al is probably flying many planes that aren’t full and may take an economic hit on that account alone; jet fuel is expensive and nowadays full planes are necessary to avoid losing money).

Here are the major countries of origin for the tourists last year:

US: 623,000
Russia: 603,000 tourists
France 315,000
Germany 254,000
United Kingdom 217,000
Italy 173,000
Ukraine 134,000


A quarter of all visitors described themselves as pilgrims. Over half said they were Christians and a little over a quarter were Jewish. .................(more)

The complete piece is at: http://www.juancole.com/2014/07/devastates-fragile-apartheid.html



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