Small business adapts in Middle East


CHERYL GLASER: Israeli missiles are once again taking aim at Beirut. At least 23 people have been killed so far today in Lebanon. Meanwhile Hizbollah fought back this weekend with new attacks on the Israeli city of Haifa. The fighting has taken a human and economic toll on both sides of the border. Reporter Hilary Krieger looks at the financial fallout in Israel:

HILARY KRIEGER: Until last Wednesday, northern Israel was a popular spot for tourists. It offered something the rest of the country generally lacks: forested views and quiet surroundings.

But since then, Hezbullah has rained over 1,000 rockets on the region. The attacks have shattered the calm and littered the countryside with rubble and charred earth. That has sent virtually every Israeli tourist packing.

Rachel Levy runs a bed and breakfast in Rosh Pina, 10 miles south of the Lebanese border.

RACHEL LEVY: All the restaurants are closed. All the rooms are empty.

Thousands of residents, Levy among them, have also fled south, out of range of the rockets. Those remaining are mostly in bomb shelters.

LEVY: No one walks on the street. It's like a ghost town.

Retailers and service providers are hurting. So are factories and banks, which have been closed for days. Agriculture is also struggling, especially the many poultry farms.

In Jerusalem, I'm Hilary Krieger for Marketplace.


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