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Gaza Terrorism Costs Israeli Businesses $55 Million

Experts said that Gaza area factories and businesses are out NIS 200 million after Operation Pillar of Defense
By David Lev
First Publish: 11/22/2012, 5:25 PM

IDF reservists in Pillar of Defense
IDF reservists in Pillar of Defense
Israel news photo: IDF Spokesperson's Office

With Operation Pillar of Defense apparently coming to an end, the time has come to add up the financial toll to Israelis of the week-long massive missile barrage by Hamas terrorists.

The bottom line, said experts – factories and businesses are out NIS 200 million (about $55 million) as a result of damage to offices, stores, and factories, as well as operating expenses. The figure does not include damages to individuals' homes and and property.

The figure was based on an analysis of several studies conducted by the Industrialists Association, as well as on insurance claims. The studies looked at losses only within 40 kilometers of the Gaza border, and did not take into consideration damages in other places, such as Rishon Lezion, where several Fajr rockets fired by Gaza Arab terrorists fell.

The figure also includes lost productivity, given the fact that employers are required to pay salaries to employees under such circumstances (employers can reclaim the money from National Insurance). With that, the studies showed, about 75% of employees in the affected area came to work as usual, although productivity was way off. Lost profits, however, are not included in the figure, and will likely only show up on businesses' books later on, the Industrialists Association said.