Despite Gaza-flotilla affair: Business between Israel and Turkey as usual

Military deals have not been canceled. Nor have most of the civilian business dealings, from textiles to shipping, metals and irrigation systems. Tourism is hit hard

The Israeli tourism boycott is having a strong impact on the Turkish hotel industry and the price of hotel rooms in the country has plummeted, the Turkish newspaper Hurriyet reported this week.

According to the Turkish newspaper, The Turkish economy has lost at least $400 million as Israelis canceled tens of thousands of reservations after the Gaza-flotilla affair worsened the rift between the two countries.

With all charter flights to Turkey canceled and the sole remaining carrier, Turkish Airlines, reducing flight numbers and plane sizes, the Turkish tourism sector is beginning to feel the loss of the small but profitable Israeli tourism market.

The main beneficiaries of the Israeli abandonment of Turkey appear to Greece and the Greek Islands, Cyprus and Eastern European countries. Their relative proximity to Israel and the similar climate makes them attractive substitutes, even if they don’t offer the much-adored all-inclusive resorts that Israelis found in Bodrum, Marmaris and other resorts.

Sources closed to both governments have noted that in most other respects, it is still business as usual between the longtime allies. Military deals have not been canceled. Nor have most of the civilian business dealings, from textiles to shipping, metals and irrigation systems, that accounted for almost $3 billion in trade last year, business analysts said.

“Everything is according to schedule,” the Israeli official said. “There are no changes. It’s business as usual”.