The COVID-19 pandemic has impacted everyone and this includes Israel. The global economy has been disrupted in multiple ways and there are a number of shifts that are taking place all over the world. With many companies having to face varying restrictions from different governments, it has been hard for businesses to keep up their revenue. As a result, investments have started to wane as well. When looking at Israel, there are a number of shifts that have taken place and it is important to highlight them, as this is going to play a major role in the ability of the country to recover.
The Tourism Industry in Israel
One of the industries that has been hit the hardest in Israel is the tourism industry. Every year, a significant amount of revenue in Israel comes from tourists. In particular, Israel is a global hotspot for those who are looking to travel for religious purposes especially during the holidays. Right now, the tourism industry in Israel has ground to a halt.
In many cases, Ben Gurion Airport in Israel looks like it is celebrating Yom Kippur every day. Even though tourism is a seasonal industry and many of the tourism and travel firms had a significant portion of reserves, this is starting to run dry. Many tourism companies in Israel are wondering if they will ever be able to open again. This is one of the industries that is really feeling the sting. Without global travelers, this is impacting the investment landscape of Israel as well, as this industry has seen a major drop.
Bars and Restaurants
Another major industry in Israel that has felt the sting of the pandemic has been bars and restaurants. These are some of the businesses that have had to remain closed the hardest. Many of them took a major hit with the country had to lock down the first time. Now, with Israel facing a second lockdown, many people who run bars and restaurants are wondering if they will ever be able to open again.
Many bars and restaurants were excited when they opened up the first time. They felt like the first lockdown was going to be the only one and many of them felt proud of the effort they had put in to help out the rest of the country. With the country continuing to struggle to keep the pandemic under control, these businesses are seeing a major drop in investments.
The Venture Capital Landscape in Israel
Finally, it is time to take a look at venture capital investments in Israel. This is actually one of the few areas in which Israel is doing well. When comparing the first half of 2020 in Israel to the first half of 2019, Israel actually showed an increase in the number and frequency of venture capital deals. While Israel did see a record low when it comes to VC investments in the second quarter of 2020 due to the pandemic, it appears that this has picked up.
During the past six months, Israel has actually seen a record number of deals. Many of these deals have taken place in the world of cybersecurity. This makes sense, given that many people are working remotely or from home. They need to find ways to stay up to date with what is happening at work, which makes the internet an invaluable resource. It is important to use a safe and secure internet connection, which explains the growth in cybersecurity.
Even though VC is a rapidly growing area in Israel, this doesn’t mean much for the average family. There are countless people in Israel who are struggling to make ends meet because of the pandemic. They might not have the financial reserves to be able to face another prolonged lockdown. Therefore, it is important for everyone to follow the guidelines when it comes to staying safe during the pandemic. This will encourage investors to return to Israel in other areas and start supporting the economy again.
Looking at the Future of Israel
Right now, it is important to note that Israel is the first country to have imposed a second lockdown. Therefore, many of the businesses in Israel are going to continue to suffer. Many people are obviously feeling the sting of the second lockdown and have taken to the streets to express their frustration; however, the government has actually banned protests because they are worried about the ability of the virus to spread. With this in mind, the economic future of Israel is very much uncertain. It is critical for everyone to follow the advice of public health experts and remain vigilant. This is the only way that people are going to be able to stay safe and be able to open the country again in the near future.