National Early Recovery and Reconstruction Plan for Gaza 2014-2017_FINAL...

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3.3.3 Trade and Services
Prior to the Assault
Trade activities in Gaza are extremely difficult under strict Israeli measures and full control over the crossings. This has deprived
firms of access to West Bank and international markets. The internal trade sector in Gaza is mainly comprised of micro and small
enterprises representing 99 percent of the total commercial enterprises. The trade sector is well connected with agriculture and
manufacturing. Without a scale up in these sectors, retail and wholesale activities will not be able to flourish.
Israeli movement and access restrictions have limited the telecommunications sector for years, including on the launch of a
second Palestinian mobile phone operator, the import of equipment, and the movement of personnel into and out of Gaza.
International tourism has become a moribund industry due to restrictions on entry into Gaza, although domestic (internal)
tourism has grown, as Palestinians seek leisure within the confines of the blockaded borders of Gaza. However, this is insufficient
to occupy the 15 hotels.
Impact of the Assault
Nearly 4,200 commercial enterprises suffered during the assault: around 1,255 were destroyed and 2,928 were partially damaged.
Over 90 percent are small stores.
The scale of damage and destruction to telecommunications (telephony and internet) infrastructure is reported to be significant,
with the damage mainly in the fixed line network. Rehabilitation will depend on access to materials from the external market
and entrance of specialized personnel into Gaza. The mobile communications network is seriously disrupted in a number of
Gaza districts: 225 stations have no power supply and 14 stations were destroyed.
The assault has dealt a further blow to the tourism industry. Many of important sites were damaged during the July/August assault,
including three submitted by the Government for addition to UNESCO’s list of World Heritage sites.
Five bank branches were damaged during the bombardment. The degree of indirect losses to the banking sector will become
clear as the situation stabilizes and banks determine which customers will be unable to pay back their loans, and the impact of
this on total non-performing loans.
3.3.4 Employment and Livelihood
Prior to the Assault
Unemployment was at 45 percent (after a sharp increase from 28 percent following the end of the tunnel trade in mid-2013):
nearly 70 percent of young people were unemployed.
Impact of the Assault
While final figures are not yet available about the level of unemployment post-assault, the widespread devastation of the
economic sector and the prolonged suspension of work indicate that the rate of unemployment has jumped significantly and
will remain higher than the pre-assault rate for a prolonged period.