In a determined effort to revitalise Lebanon’s flagging tourism sector, the Tourism Ministry recently staged a vibrant retro-themed event at the illustrious St. Georges Hotel in Beirut. As fireworks lit up the Mediterranean night sky, the rhythmic sounds of 1960s and 70s music filled the air, designed to evoke nostalgia for the “golden era” before the civil war that ravaged the country from 1975 to 1990. This spectacle, aiming to attract both international tourists and local expatriates, marks Lebanon’s initiative to recapture its status as a premier destination for affluent visitors, particularly from Gulf nations.

Historically, the country’s tourism flourished in the decades prior to the civil war, drawing in wealthy tourists who were captivated by Lebanon’s exquisite landscapes, vibrant nightlife, and rich cultural tapestry. The influx of Gulf tourists returned briefly in the early 2000s but eventually waned as conflicts escalated and political dynamics shifted, particularly with the rise of Hezbollah, which altered Lebanon’s relationships with its Arab neighbours. As a result, trade and tourism suffered significant declines, crippling a sector that once contributed nearly 20% to Lebanon’s GDP.

Recent shifts in geopolitics, especially following last year’s war with Israel, have prompted some optimism. With Hezbollah’s influence reportedly weakened, Lebanon’s new political leadership is seizing the moment to improve ties with Gulf countries, particularly Saudi Arabia, whose citizens have mostly been discouraged from travelling to Lebanon. While the United Arab Emirates and Kuwait have recently lifted their travel bans, the prospects for Saudi tourists remain uncertain and heavily contingent on continued improvements in regional security.

Laura Khazen Lahoud, Lebanon’s tourism minister, emphasised the importance of restoring Gulf tourism. “Tourism is a big catalyst, and so it’s very important that the bans get lifted,” she stated. The changes on the ground are palpable, with once-omnipresent political propaganda being replaced by commercial advertising, signalling hopes for economic recovery. This sentiment is echoed by local business owners who report increased bookings and a burgeoning sense of optimism as domestic and expat travel begins to rise. Fady El-Khoury, owner of the St. Georges Hotel, expressed a hopeful outlook: “I have a feeling that the country is coming back after 50 years.”

However, the path to revival is fraught with challenges. Reports indicate that poverty levels in Lebanon have tripled in the past decade, with inflation spiralling and the national currency devaluing by over 90%. The World Bank highlights the pressing need for structural reforms to address corruption and inefficiencies, pointing out that without such measures, Lebanon’s economic recovery may remain precarious. Discussions with the International Monetary Fund, which entail stringent requirements for financial reform, have been ongoing but progress appears stalled, raising concerns about the longevity of a tourism-fuelled recovery.

While the tourism sector is experiencing a resurgence—driven partly by rescheduled flights and increasing hotel reservations—experts caution that this rebound could be a temporary uplift rather than a sustainable solution. Sami Zoughaib, a research manager at The Policy Initiative, warned that excessive reliance on tourism and remittances may fail to provide a robust foundation for economic stability. He stressed that without significant reforms to improve governance and institutional integrity, Lebanon risks avoiding the deeper, systemic changes necessary for long-term recovery.

Intriguingly, the summer of 2023 has shown promising signs, with a substantial influx of tourists generating around $3.8 billion in revenues, a modest increase from previous years. Seasonal jobs are also on the rise, with the tourism sector reportedly recovering thousands of jobs lost in the economic crisis, providing some respite to the beleaguered workforce.

Yet, as Lebanon seeks to pivot towards a revitalised economy, many remain realistic about the challenges ahead. The tourism boom alone cannot remedy the broader economic malaise exacerbated by political corruption and the enduring spectre of conflict. As Lahoud noted, true recovery will require a collective commitment to dialogue and reform, a sentiment she believes is slowly gaining traction amid the broader challenges confronting the nation. As the summer season approaches, Lebanon stands at a crossroads—one that could lead to renewed vitality or further descent into hardship, depending on the choices made by its leadership and the resilience of its people.

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Source: Noah Wire Services