Top > Business > 2006 > July > 2006-07-19

Reaping the Financial Benefits of Conflict

Cyprus has seen an influx of refugees and tourists as a result of the fighting which broke out last week in the Middle East, and will likely see short-term financial benefits for being a connection for those leaving Lebanon and returning to their homes in Europe or elsewhere around the world. Syria, too, which already has close economic ties to Lebanon following decades of military occupation, has seen an influx of Arab tourists fleeing the fighting in Lebanon, as well as ordinary Lebanese seeking to escape the destruction that once again seems to visit their homeland every so often.

That this destruction, costing upwards of $700 million dollars so far, has resulted from the actions of the government of the country they are now fleeing to from Lebanon, hasn?t seemed to cross their minds. Even if it has, that won?t stop them from shelling out the money to stay in hotel rooms in order to escape the shelling of their communities, brought upon Lebanon by what many Arab governments and Lebanese politicians have called the irresponsible actions of homegrown-but-outsider-supported terror group Hezbollah.

Meanwhile, there haven?t been estimates released yet on the damage caused to buildings in northern Israel as a result of missiles being fired from Lebanese territory by Hezbollah into Israel, but the long-term impact will likely be more if tourists refrain from visiting a hot-spot like the Galilee or formerly tranquil Haifa. The shutdown of the Haifa Port operations on Monday also incurred financial costs for the city and the Jewish state that will need to be reversed.