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Over ten months of violence between Hezbollah and the Israeli army have, as anticipated, resulted in hundreds of casualties in Lebanon, along with significant material and, most importantly, economic losses. The cost to Lebanon is staggering and unbearable for a country already on the brink.
The damage caused by Israeli bombings in southern Lebanon since October 8 is estimated at $6 billion across all sectors, compounded by an evident economic downturn, according to several research and statistics institutes. While this war is concentrated in the south, its effects are being felt across the entire country. The cost is, unsurprisingly, far too high for a country on the verge of collapse.
The war between Israel and Hezbollah has caused massive damage to infrastructure, estimated at over $500 million. Mostly affected are water pumping stations, electrical, telephone, and internet relay stations, not to mention major roadways. Although Israel claims to target Hezbollah’s infrastructure and positions, civilians have not been spared. Thousands of homes have been partially or totally destroyed. The Southern Council estimates that around “1,700 houses have been completely demolished and more than 14,000 homes damaged.” However, the bombings have mainly destroyed the residents’ livelihoods and a large portion of agricultural fields.
A Devastated Agricultural Sector
The agricultural sector has been the hardest hit by the bombings in southern Lebanon. This region, which enjoys optimal agro-climatic conditions, is highly productive and serves as the backbone of the sector—accounting for about 80% of southern Lebanon’s GDP and employing 65% of the region’s population.
Sources at the Ministry of Agriculture report that losses in the agricultural sector are estimated at “over $2 billion.” However, they emphasize that this is a preliminary estimate, as the war continues and soil testing has yet to be carried out. There is concern that white phosphorus (used by Israel) may have caused even deeper and more severe damage.
Undoubtedly, the destruction of crops and farmland, chemical pollution—particularly from phosphorus bombs—and the impact on livestock and beekeeping are severely threatening the local economy. According to sources, by August 27, 96 fires had completely devastated 7.2 million square meters of forests, farmland, olive groves, and other plantations. The figures are alarming: over 60,000 olive trees and more than 5,000 trees of various species (including oaks and over 55% of the pines) have been destroyed. Furthermore, 35% of fruit trees have been burned, and 10% of aromatic herbs (such as parsley, mint, and coriander) have been damaged, according to the same sources.
In addition, this year, tobacco farmers will be unable to plant due to restricted access to their fields. Tobacco production, which amounts to approximately two million kilograms—55% of the national output—generates over $10 million in revenue.
As for fruits and citrus, the southern region, which cultivates 7,500 hectares, generates 72% of the sector’s revenue ($16.25 million out of a total $22.5 million). The south produces 22% of Lebanon’s fruits and citrus and 38% of the country’s olives. It supplies 5,000 of the 25,000 tons of olive oil produced annually. Therefore, the bombings could impact up to one-fifth of Lebanon’s olive production profits, which amount to nearly $23 million.
These crops generate vital income for the local population, especially for those in border villages. The destruction has not only impacted the crops but also the livestock, with over 23,000 head of cattle and 400,000 poultry killed. Additionally, 370 beehives have been destroyed and 3,000 abandoned due to the exodus of beekeepers. Twenty-four farms have been targeted, along with 600 square meters of storage facilities containing animal feed.
Significant financial and technical investments will undoubtedly be necessary to restore the region’s full productivity.
A Severe Blow to the Tourism Sector
The war has also dealt a severe blow to the tourism industry, which constitutes 20% of the country’s GDP. Although some Lebanese expatriates came home this summer, many stayed away due to concerns about the conflict spreading and the potential closure of the airport. Meanwhile, foreign tourists largely stayed away.
Initial estimates suggest that the war in southern Lebanon has caused over $3 billion in losses to the tourism sector. The hotel industry has been severely impacted, with occupancy rates plummeting below 20%, and restaurant revenues falling by around 50%. Similarly, beach resorts and car rental services have seen their revenues drop by more than 50%.
Although economic activity may seem normal, the prolonged duration of the war will increase the overall cost. The losses include missed revenue, delayed investments, and a growing lack of confidence.
Read More: https://thisisbeirut.com.lb/israel-hamaswar/285100
