U.S. President Donald Trump's decision to officially recognize Jerusalem as Israel's capital has negatively affected businesses in the holy city, according to Jerusalem's chamber of commerce.
"Trump's decision has adversely affected the city market and tourism business," chamber's director Fadi al-Hidmi told Anadolu Agency on Saturday.
He said there has been a dramatic decline in the number of tourists and hotel reservations in recent days, causing an economic recession in the city.
"Security concerns are the main reason for this decline," al-Hidmi said. "Many reservations have been canceled after the U.S. recognition."
He said even before the U.S. move, Palestinian entreprenuers have complained of the difficulty of getting Israeli licenses to start a tourist business or repair existing shops.
"It will probably be impossible to get a licence from now on," he said, adding that Israel would use the U.S. move to increase pressure on Palestinians and business owners in the city.
Hidmi said land and apartment prices in Jerusalem were likely to increase dramatically after the U.S. decision.
"In spite of opposition to the U.S. move, companies planning to move their headquarters to Jerusalem will get panicked, which will surely lead to an increase of prices," he said.
Last week, Trump announced recognition of Jerusalem as Israel's capital. The move has invited a storm of condemnations and triggered protests in the Palestinian territories and several Arab and Muslim countries.
Jerusalem remains at the heart of the Israel-Palestine conflict, with Palestinians hoping that East Jerusalem -- now occupied by Israel -- might eventually serve as the capital of a Palestinian state.
