In response to the recent cross-border conflict following a Hamas rampage on October 7, around half of Israel's hotel rooms are currently being utilized to accommodate families who have been evacuated from areas near the Gaza Strip. These evacuees are being housed in 28,000 of Israel's total 56,000 hotel rooms, and the government is covering the associated costs. This information was provided by Yael Danieli, the CEO of the Israel Hotel Association, during a parliamentary panel discussion focused on compensation for individuals affected by the conflict.
Danieli also mentioned that an additional 27,000 people from border towns near Lebanon are anticipated to require accommodation as the hostilities have escalated along the Israeli-Lebanon border in parallel with the Gaza conflict. These citizens are not only in need of shelter but also require meals and other forms of welfare support, for which the state will need to provide assistance.
Due to the ongoing situation and the subsequent disruption of foreign tourism, Israel has experienced a significant reduction in the number of international tourists visiting the country. Many nations have organized repatriation flights for their citizens, particularly as most commercial airlines suspended services to Tel Aviv. As a result, Israeli hotels have been repurposed to house evacuees. For example, the Dan Hotel chain has allocated its properties in Jerusalem, Tel Aviv, and Herzliya to provide shelter for evacuees, while the Isrotel chain has designated its hotels in the Red Sea resort of Eilat to accommodate displaced families.
In light of the evolving circumstances, Yogev Gardos, Israel's budget director, noted that the country initially prioritized financing the military's requirements. However, there is now a shift toward addressing broader economic issues. Gardos stated that in the coming days, comprehensive financial grants will be distributed to support the entire economy. While these grants are expected to be substantial, they may not fully compensate for all the economic damage incurred, as the state's resources have limitations that prevent providing complete compensation.
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