The Hidden Cost of Israel's War

All wars exact a heavy price.  Soldiers are killed.  Families are devastated.  Cities are destroyed.  Economies are ruined.  In direct economic cost, Israel’s war against Hamas is estimated to come out at $67 billion.  But there is a mounting hidden cost which is likely to plague Israeli society for some time to come.  I mention these points so that when we pray for Israel, we might not only pray for their war effort but also for many of the societal challenges they face as a result of the wars they are fighting.    

TOURISM

Aside from the overall population itself, the sector which has been hit the hardest is tourism.  In peak years, where Israel usually expects close to five million tourists, the value to the economy is in the billions of dollars.      

According to the Israeli Ministry of Tourism, a little over three million tourists entered Israel during 2023.  That is, until October 7, 2023.  Since the war began, tourist numbers have plummeted.  For those who rely heavily on tourism income, it has been devastating, particularly since they were just starting to recover from the COVID-19 lockdowns.

Fluctuating violence is nothing new to tour operators.  Nor is the last-minute cancellation of incoming tour groups due to unexpected war and terrorism.  They usually have a financial reserve to help them survive challenging times.  However, the COVID-19 lockdowns depleted those reserves and as a result, many businesses are now in a very precarious position.  Although many pivoted to helping with relief efforts, if tourism does not recommence soon, many will face financial ruin.

Tourism operators are also growing concerned at rising antisemitism throughout the world, which they believe may not only dissuade some tourists from visiting, it may also result in commercial boycotts and a lack of viable air transport for tourists.     

BUSINESSES

According to a Times of Israel report in July 2024, 46,000 Israeli businesses have had to make the heart-wrenching decision to close due to the poor economic environment.  Sadly, that number is expected to rise to 60,000 by the end of 2024.

Personnel is another key challenge for businesses.  Reservists undertaking their military service had to be suddenly removed from their work commitments, leaving little time to organise replacements.  Additionally, 85,000 Palestinian workers have disappeared from Israel’s construction industry as they have not been allowed into Israel to work due to security concerns.  Couple that with the fact that many foreign workers working at building sites left the country and it means that many building sites have had to shut down completely due to a shortage of workers.

MENTAL HEALTH

Not surprisingly, the mental health trauma directly and indirectly related to the events of October 7 will take time to accurately assess.  However, there are already key signs that many Israelis are struggling to cope with the trauma.  A recent Jerusalem Post report indicated that one out of every three women and one out of every five men report having a high level of post-traumatic stress following the events of October 7.  According to the Israel Centre on Addiction and Mental Health this is an increase of 150% among women and 65% among men, compared to data from 2022. 

Unfortunately, the trauma has translated into substance abuse (whether prescription drugs, alcohol or recreational drugs).  In 2018, 1 in 10 Israelis had substance abuse disorders.  In 2022, that number rose to 1 in 7 (which medical professionals directly attributed to the COVID-19 crisis).  However, by November 2023, substance abuse rose to 1 in 5 and by December 2023, it was up to 1 in 4.  Sadly, the 1 in 4 statistics relates to the general population.  Among those who have been evacuated from conflict zones it is approximately 1 in 3 and among the survivors of October 7, it is 1 in 2.  That is a devastating ratio.  If, as anticipated, there is a long, complex and deadly war in the north against Hezbollah, these statistics are expected to worsen. 

FARMING

Terrorists who infiltrated the Gaza Envelope on October 7 didn’t just take lives, they severely damaged the Israeli agricultural sector.  Chicken coops were incinerated. Hectares of crops were ravaged. Irrigation systems were dismantled. Greenhouses were burned to the ground. Orchards were flooded. Farming equipment was either burnt or stolen.

According to a recent report in The Jewish Chronicle, more than half of the 45 communities attacked on October 7 were agricultural kibbutzim and moshavim in a once-arid region that now produces approximately 70 percent of the country’s vegetables, 20 percent of its fruit and six-and-a-half percent of its milk.  Furthermore, the Hamas attacks damaged 40,000 hectares of agricultural land and cost $500 million in lost farmer income and infrastructure damage.

Yuval Lipkin, deputy director general of Israel’s Agriculture Ministry, declared last November that, “Israel’s agriculture is in its biggest crisis since the establishment of Israel.”  For example, consider the steep cost of replacing equipment alone.  Most insurance companies don’t cover physical assets destroyed during war.  However, the Israeli government’s assistance programs only reimburse the depreciated value of the equipment at time of destruction.  Therefore, if you had a four-year-old tractor, its depreciated value might be $100,000 but the cost of replacement is $300,000.  Jewish philanthropy, displayed in full leading up to and after 1948, may well need to be called upon once again to rebuild farming communities.

IN CONCLUSION

Right now, many nations of the world are actively opposing Israel, whether that be through war and terrorism (by Middle Eastern nations) or through political opposition (by Western and Asian nations).  Many are tearing at the fabric of Israel, believing that if Israel disappeared, the world would be a better place.  Yet, we are reminded of the promises of God as spoken through the prophet Isaiah.  In the future, nations will not come to Israel with war or political pressure, they will come because the Lord is there.  Isaiah 2:2-3 says: Now it shall come to pass in the latter days that the mountain of the LORD’s house shall be established on the top of the mountains, and shall be exalted above the hills; and all nations shall flow to it.  Many people shall come and say, “Come, and let us go up to the mountain of the LORD, to the house of the God of Jacob; He will teach us His ways, and we shall walk in His paths.”  For out of Zion shall go forth the law, and the word of the LORD from Jerusalem.   

In that time, Israel will no longer be a hated and rejected pariah.  What a wonderful day that will be.  Maranatha!