Lebanon”s Economy Hit Hard by Decline in Number of Gulf Tourists
Lebanon”s political crisis has turned into an economic nightmare for the vital tourist industry, hard hit by a slump in tourists from oil-rich Gulf states who have been told to avoid the troubled country.
Saudi Arabia, Kuwait and Bahrain, whose citizens often spend as much of their money on Lebanon”s ski slopes in the winter as they do on its beaches in the summer, have advised their citizens not to travel to a country in the grip of a bad political crisis.
Riyadh — one of Lebanon”s main bankrollers — went even further, recently instructing its citizens already in Lebanon to leave the country “if possible.” And Saudi Foreign Minister Prince Saud al-Faisal warned last month that the country was “on the verge of civil war.”
For a tourist industry already reeling from the February 2005 assassination of ex-Premier Rafik Hariri and Israel”s offensive on the country in the summer 2006, such warnings are the kiss of death.
“Without tourists from the Gulf, we can”t live!” exclaimed Elyssar who works at a furniture store along the road that connects Beirut to Bhamdoun and Aley, two towns very popular with rich Arab tourists.
“More than 50 percent of our revenue comes from them,” she said.
Lebanon has been rocked by a wave of attacks against anti-Syrian figures over the past three years and a protracted political crisis has left the country without a president for more than three months.
A long-running sit-in staged by the Hizbullah-led opposition in Beirut”s downtown, rebuilt and renovated from the ruins of civil war, has also left the usually vibrant area deserted, forcing most of its shops and restaurants out of business.
“We can”t talk about tourism anymore, it”s over,” lamented Pierre Ashkar, president of Lebanon”s hotel owners” syndicate.
“Since Hariri”s assassination in 2005 and the war in 2006, it”s been nothing but a series of (assassination) attempts, fiery discourses and skirmishes. All this scares tourists away,” he added.
Tourist numbers were little more than one million in 2007, a dramatic fall to expectations of close to 1.6 million before the 2006 war with Israel.
According to the general union of Arab chambers of commerce, losses in the tourism sector over the past two and a half years have run up to 2.2 billion dollars.
In the capital, where Saudis and Emiratis are known for their extravagant purchases, anxiety has won out.
In an upmarket boutique that sells signature bags priced between 500 and 1,000 dollars apiece, salesgirl Cosette said sales have plunged because of a lack of customers.
In Beirut”s large hotels, the number of customers has also gone down. “There have unfortunately been some cancellations by some Gulf clients,” said a manager at the Bristol, once the grandest hotel in Lebanon.
Achkar said that during normal times, at least 60 percent of hotel guests come from the Gulf but that occupancy rates had dropped by half over the past two years.
“We cut prices in order to attract clients,” he said.
“Thousands of people come to the country from the Gulf and we are wasting all of it,” said Paul Aariss, president of the Lebanese restaurant owners syndicate. “Now we are afraid that Lebanese expatriates will decide to not come and visit the country.”
“My wife, who is Lebanese, is in Canada but doesn”t want to come back to the country. And why should she come in these conditions?” said Toufiq Shehayeb, a cafe owner in Aley.
Jawad, a 23-year-old bakery worker, said the latest travel advisories issued by the Gulf states were of little consequence as tourists have already deserted Lebanon.
“Since the 2006 war, they haven”t come. Who feels like doing tourism in a country that could become like Iraq?”
In a luxury furniture store at an upscale mall, people seem less preoccupied with the situation. “Arab princes and princesses are amongst our customers,” said shopkeeper Randa. “They make their purchases on the Internet.”