ALBAWABA - The Israeli Atlas hotel chain is facing a severe economic crisis amidst the continued conflict between Gaza and Israel. The hotel chain pleaded with its loyal customers in an email to donate in order to rescue it from bankruptcy. This plea comes after the government failed to cover the cost of accommodating around a thousand Israeli refugees in 16 hotel branches, pushing the renowned hotel chain to the brink of collapse.
The conflict between the Israeli army and Palestinian factions has had negative effects on Israel's economy, which has a GDP of approximately $488 billion. This has resulted in the disruption of thousands of companies, strain on public finances, and economic crises in various sectors.
Leor Liebman, the Operations Manager of the Atlas hotel chain, stated that the management sought help from its employees, suppliers, international entities, and major clients. He emphasized the urgency of customer assistance, warning that the hotel would face collapse without it. Liebman confirmed that Atlas hotels are still awaiting government aid in exchange for their support of the refugees, expressing doubt about the existence of a safety net to protect the hotel from the negative economic repercussions.
Israeli Prime Minister Benjamin Netanyahu pledged to create what he called an "economy under fire," promising to provide massive cash transfers to companies and areas threatened by negative economic consequences of the war. He stated that the state is injecting money into anyone in need and is striving to build a robust local economy, asserting that Israel is prepared to bear the economic cost of the war, regardless of its price.
While some Israeli business leaders welcomed the aid package offered by the Prime Minister, many criticized it for not meeting expectations. Some critics pointed out that the measures do not provide sufficient assistance to large companies, leading to severe economic losses.
In recent times, the Israeli economy has been experiencing devastating losses. A study conducted by the Central Bureau of Statistics revealed that one out of every three companies has closed down, while over half of them reported revenue losses of 50% or more.
The situation was particularly worse in southern Israel, the region closest to Gaza, where nearly two-thirds of companies either shut down or minimized their operations.
Amidst these negative repercussions, the Israeli central bank announced on Monday that it would provide funding of around 10 billion shekels ($2.5 billion) to support small companies affected by the war, enabling them to access low-interest loans. The financing program is set to continue until January of the following year.
Israel is currently facing a state of shock on all levels, especially on the economic front, following the attack by the Islamic Resistance Movement, Hamas, on settlements surrounding the Gaza Strip. The attack resulted in nearly 1,400 deaths, in addition to the escalation by the Israeli army, which led to the killing of over 10,000 Palestinians. The Israeli army mobilized around 350,000 reservists, representing approximately 8% of the workforce in Israel, while the country prepared for war. Furthermore, approximately 126,000 people were evacuated from different Israeli areas, further burdening the economy.
