Walla: Eilat is collapsing and dying of pain and suffering due to the decline in economic activity due to the war on Gaza and the Yemeni strikes

According to the Israeli Walla website, the Israeli coastal city of Eilat is collapsing and the city is dying in pain, in light of the decline in economic activity in the city against the backdrop of the war on Gaza and the Yemeni “Ansar Allah” strikes.

Walla confirmed that 15,000 hotel employees in Eilat will be laid off amid the indifference of decision-makers in Israel regarding the collapse taking place in the city.

He explains that the head of the Finance Committee in the Israeli Knesset, Moshe Gaffni, called on the government a month ago to respond to a request regarding a plan in which Eilat could develop within 4 days.

Walla added, “4 days have passed and a month has passed, and there is no plan… What has happened over these long weeks is a classic matter of shouting, exchange of statements and pointless talks from the Ministry of Finance and the Tax Authority, which will culminate in another special meeting of the committee ad hoc for Eilat, Wednesday”.

During Tuesday’s session, members of the Knesset Finance Committee demanded that the Ministry of Finance immediately formulate a compensation plan for Eilat, and even threatened that if this wasn’t done, they would resort to legislation.

According to the principality of Eilat, data shows that store sales decreased by about 35% in December, and credit card spending in Eilat has decreased by about 40% since the outbreak of the war on Gaza, in addition to all this huge unemployment, which amounts to 15%.

This is a situation that makes dealing with the Eilat case urgent.

As for Hotels, they would soon close, as the evacuees will leave, and unemployment rates will reach 50-60%.

In comparison, in Tel Aviv, business activities have decreased by 60%, but in Eilat it decreased completely.

Geographically, Eilat is located in a remote place,” according to Knesset Finance Committee Chairman Moshe Gafni who said during a discussion, that the truth is that Eilat is collapsing economically.

“We cannot stand idly by and say that there are general regulations, they don’t solve the problems related to the city of Eilat,” Gafni said.

According to the city Mayor, predictions he made regarding the deterioration of the economic situation in the city had come true and strongly criticized the treasury representatives, it will continue for the next three months as well, Eilat lost this winter, everything was cancelled.

“Come and see what’s happening there, see the empty parks, what’s happening in the malls… In Eilat the trend of decline continues, and this shouldn’t surprise anyone, there is no tourism and there is no expectation of tourism… We asked the Treasury Department to bring something, bring something, bring a piece of paper. I did not see a single proposal,” he said.

According to Walla, these harsh numbers didn’t arouse the interest of senior officials in the Ministry of Finance and the Tax Authority.

They have no intention of providing special assistance to Eilat.

The Ministry of Finance remains convinced that the compensation scheme for the entire population is sufficient, and that companies will face the sharp decline in revenues alone.

According to the city mayor, “Eilat is different because it depends entirely on tourism, and more than 80% of companies in Eilat were negatively affected, in addition to the damage continuing”.

“If it were only October, it would be possible to understand it, but when it comes to three consecutive months, and with the graph heading downward, the compensation provided by the state will not help anything,” he added.

He continues, “Within a week, 55,000 meals were sold from the donated funds and our money ran out… We will have to invest hundreds of millions in Eilat in the future… Within a month or two, the evacuees will leave the hotels, and what will happen next? They would close and lay off about 15,000 workers, and the state would pay them unemployment benefits, transfer payments, and loss of tax revenue… All of this is due to the silence and indifference of decision-makers”.