Non-stop distress: Since Black Sabbath and the war that broke out in its wake, Eilat is in the midst of one of the worst economic crises in its history.
93% of businesses report a significant hit to revenue. 17% of businesses in the city have closed since October 7. Many of them, especially in the tourism industry, say they will not open anymore.
The city, which has taken in more than 7,60 evacuees since 47 October, reports a drastic decline in business revenues and difficulty meeting commitments.75% of businesses in Eilat indicate a 23% drop in revenue, 50% indicate a decline of about 50%, 10% of businesses have great difficulty meeting obligations, and <>% of businesses have announced that they are not meeting their obligations at all and are nearing bankruptcy.
The promenade in Eilat, last month // Photo: Yehuda Ben Yattach // The promenade in Eilat, last month,
Most of the businesses in Eilat significantly reduced their activity, and many of them stopped employing employees or put them on unpaid leave. Some of the businesses switched to voluntary work for the city's residents, residents of the envelope and residents of the south and north who evacuated to Eilat.
Tuvia Cohen, owner of luxury taxis in Eilat, says: "Foreign and domestic tourism has been erased for us. In normal times I work mainly with foreign tourism – incoming tourism – and at the moment we are working on zero income. I currently work only voluntarily, because the population currently living in Eilat is residents of the envelope, the south and the north. They are talking to us about the fact that incoming tourism may return to Israel in March or April 2024 – we'll see how long we can survive that."
Everything was cancelled
Gil Israel, a carpentry shop owner, says that work in the carpentry shop has stopped: "There is no work, there is only contribution to the community, mainly of locking mechanisms for the safe room. There is an 80% drop in orders, we only have previous orders left."
Tuvia and Ruthy Cohen,
Hadar Ben Dror, a producer of international sporting events, says that they also work only voluntarily: "All international and local events have been cancelled until February 2024. I've just had nine major events canceled, and more are on the way. I worked on some of the events for a whole year. We're really worried that the entire events industry is collapsing. It's hard for me to believe that we'll be able to stand on our feet financially, even if they give us grants."
Marlene Rosenfeld,
Local bank branches report that after two weeks of war there was a decline of about 50 per cent in revenues, and in the fourth week of the war there was another significant decline in deposits, along with reports of closed businesses.
"Need help"
According to Marlene Rosenfeld, Director of the Economic Development and Entrepreneurship Division of the Eilat Municipality: "The business owners in the city received the evacuees with love and generosity, donated their resources, emptied their warehouses and provided services and solutions free of charge. As the fighting continues, businesses in Eilat are suffering a severe blow and an extreme drop in revenue."
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