Heavy Losses: How the Houthis’ Ban Affected Israel’s Tourism and Retail Sales

NYN | Reports and analyses

The Israeli newspaper The Jerusalem Post has confirmed that the shipping delays caused by the Houthis’ (Sana’a government forces) ban on Israeli ships passing through the Red Sea have cast a dark shadow over the tourism sector, negatively impacting retail sales related to tourism activities in Israeli settlement markets.

In its report, the newspaper explained that the war in Gaza has severely damaged the tourism industry, predicting that 2024 will close with only about one million tourists visiting Israel, less than a quarter of the tourists who came in 2019, according to data from the Israeli Ministry of Tourism.

According to The Jerusalem Post citing the Ministry of Tourism, Israel suffered a net loss of 18.7 billion shekels (approximately five billion dollars) from international tourism, in addition to a loss of 756 million shekels (203 million dollars) from domestic tourism, particularly in northern Israel, after almost a year since the war began.

The ministry noted that the war halted the recovery of Israel’s tourism industry, which had been severely impacted by the COVID-19 crisis in 2020. According to the report, about 853,000 tourists entered Israel this year, most of them from the United States, France, the United Kingdom, Russia, and the Philippines. About 62% of the visitors were Jewish, while 29% were Evangelical or Catholic Christians, and 44% came to visit friends and family.

In a related context, the newspaper highlighted the impact of the war on the shofar trade. In a report titled “Shofar Shortage: War Hits Jerusalem Merchant Amid Shipping Delays and Rising Costs,” it detailed the struggles of Eliezer Rafoua, a Jewish souvenir seller in Jerusalem, who is facing difficulties due to shipping delays and increased costs.

Rafoua mentioned that this year has been particularly challenging, with shofar prices rising by about 15% to 20% due to higher shipping costs. He noted that the disruption at Eilat Port has made it difficult for ships coming from the East via the Red Sea to arrive.

Rafoua emphasized that the fear of Houthi attacks has affected shipping routes, increasing delivery times. While he was able to secure some shofars, the prices were much higher. He also explained that the drop in purchases is due to the decline in the flow of tourists to Israel.

Expressing his surprise at the current situation, Rafoua said, “I’ve been in this shop for 42 years. We’ve survived all the terrorist attacks and COVID-19, but this situation is completely different.”