ISRAELI ARAB VISITS TO JENIN HAVE MINIMAL ECONOMIC

C O N F I D E N T I A L JERUSALEM 001340

SIPDIS

NEA FOR FRONT OFFICE; NEA/IPA FOR
GOLDBERGER/ROSENSTOCK/SACHAR; NSC FOR PASCUAL; TREASURY FOR
ROSE; SEMERS FOR ELDRIDGE

E.O. 12958: DECL: 07/22/2018
TAGS: ECON PREL IS KWBG
SUBJECT: ISRAELI ARAB VISITS TO JENIN HAVE MINIMAL ECONOMIC
IMPACT

Classified By: Consul General Jake Walles for reasons 1.4 (b),(d).


1. (C) Summary: Israeli Arabs have trickled into Jenin
since the GOI began allowing visits to the city in June.
Palestinian government and business contacts in Jenin say the
hoped-for economic benefits have not materialized. Most
Israeli Arabs who cross the barrier, they say, are coming to
see family rather than shop. They attribute the
disappointing economic impact to the many restrictions placed
on the visits, most importantly a ban on vehicles. Jenin
authorities expect the GOI to increase the daily cap on
Israeli Arab visitors from 200 to 1,000 and expand visiting
hours in August, but doubt that the key restriction -- the
vehicle ban -- will be lifted any time soon. End summary.


Little Economic Impact of Israeli Arabs in Jenin
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2. (SBU) Palestinian government and business contacts in
Jenin say that allowing Israeli Arabs to visit the city is
having little economic impact. Historically, Jenin's economy
has been closely tied to nearby Israeli Arab towns and
villages that were cut off when the GOI restricted movement
across the Green Line during the 2nd Intifada. Local
businessmen say the city's economic revival depends on
reestablishing these commercial links and enticing the
thousands of Israeli Arabs that once shopped there to return.

Restrictions on Visitors Limit Economic Benefit
-------------- --


3. (SBU) According to contacts in Jenin, various
restrictions on the visits, which the GOI began allowing in
early June, limit their economic benefit to the city. Among
the restrictions they cite are:

-- a cap of 200 visitors per day;
-- a ban on vehicles;
-- limited visiting hours (from 8:30 a.m. to 4:00 p.m.,
Monday to Friday);
-- age limitations (no visitors under age 18);
-- weight restrictions on purchases (15 kilos);
-- type restrictions on purchases (e.g, no fresh meats or
fish health for sanitary reasons, no electrical components);
-- a ban on suitcases or other large containers for carrying
purchases.

Low Number of Visitors Don't Do Much Shopping
--------------


4. (C) Estimates of the numbers of actual visitors range
from approximately 80 to 150 per day. City Council member
and local businessman Isam al Nimer told EconOff that the
time and effort required to cross the Jalameh crossing near
Jenin deters many visitors. Al Nimer said he doubts many
Israeli Arabs want the "harassment and humiliation" they
often experience at Jalameh "just to save a few shekels on
cucumbers."


5. (C) Al Nimer estimated that about 80% of Israeli Arab
visitors come primarily to visit relatives, not to shop.
"They just buy lunch and go home," he said. Abdallah
Baracat, General Director of the Jenin Governorate, said shop
owners in Jenin's main markets tell him they see "no
difference" in their business. Jenin's economy, said
Baracat, is "not really getting better."

Lifting Car Ban Would Help, but Won't Happen Soon
-------------- --------------


6. (C) Jenin's businessmen say that lifting the ban on
vehicles is key. Raghib Haj Hasan, the vice chairman of a
company attempting to develop an industrial park near Jenin,
said that only when Israeli Arabs can drive into the city and
load up their cars with purchases will the local economy get
a real boost. Based on his discussions with GOI officials,
Baracat said that lifting the vehicle ban is probably "a long
way off," given GOI concerns about security and Jalameh
crossing's limited capacity to handle more traffic. Baracat
says he does expect the GOI to relax some other restrictions
in August, e.g. increasing the maximum of daily visits to
1,000, allowing weekend visits, and perhaps letting shoppers
use suitcases to carry purchases.
WALLES