Pyrotechnics illuminated the evening heavens above Beirut’s famous St. Georges Hotel while classic tunes from the 1960s and '70s echoed through the courtyard, which offered views of the Mediterranean Sea.

Last month, Lebanon’s Tourism Ministry organized a retro-themed event aimed at promoting the approaching summer season and possibly reviving the positive atmosphere reminiscent of what many consider to be a golden age for the nation.

Before the civil war started in 1975, Lebanon attracted affluent visitors from nearby Gulf nations who flocked there for beach vacations in summer, mountain retreats with snowy slopes in winter, and vibrant city life throughout the year. Following the conflict, tourism rebounded significantly among travelers from these regions—particularly those from Saudi Arabia—which also helped revitalize Lebanon’s economy during the subsequent ten years.

But by the early 2000s, as the Iran-backed militant group Hezbollah gained power, Lebanon's relations with Gulf countries began to sour. Tourism gradually dried up, starving its economy of billions of dollars in annual spending.

A fresh chapter for Lebanon

Following last year’s intense conflict with Israel, Hezbollah has been significantly weakened, and Lebanon’s emerging political leadership sees a chance to rejuvenate the economy through assistance from prosperous neighboring countries.

Their objective is to dismantle Hezbollah’s capabilities and restore relationships with Saudi Arabia and other Gulf states, nations that recently banned their residents from traveling to Lebanon or purchasing goods from the country.

Tourism plays a significant role as an accelerator, which makes it crucial that these restrictions are removed," stated Laura Khazen Lahoud, who serves as the nation's tourism minister. Along the road heading towards Beirut Airport, former banners promoting Hezbollah’s leadership have now been substituted with commercial advertisements and signs declaring "a new chapter for Lebanon.

At the heart of Beirut, particularly in areas aiming to draw more visitors, political posters are being removed, and both police and military presence has increased. Indications suggest improved ties with certain Gulf countries. The United Arab Emirates and Kuwait have recently overturned long-standing travel restrictions. Now all attention turns to Saudi Arabia, a key player politically and economically in the region, as observers await whether it too will rescind similar measures, according to Lahoud and other Lebanese authorities.

The main issue holding things back is security, according to these officials. Despite a ceasefire with Israel having been established in November, frequent air strikes continue to occur daily in southern and eastern Lebanon—regions where Hezbollah has historically developed both its strong political support and formidable military capabilities over time.

Reconstructing more than just tourism -- but everything else as well.

Tourism has always been crucial—accounting for nearly 20% of Lebanon's economic activity prior to its decline in 2019—but government officials emphasize that it is merely one part of the broader reconstruction effort they aim to undertake. Both agriculture and industry have faced severe challenges; these sectors were particularly hard-hit in 2021 following Saudi Arabia’s ban on Lebanese goods due to accusations of drug trafficking by Hezbollah into Riyadh.

Decades of poor economic management have pushed the nation's formerly prosperous middle class into dire straits.

According to The World Bank, poverty has almost tripled in Lebanon during the last ten years, impacting approximately half of its roughly six-million-person population. Adding to this crisis, inflation is rapidly increasing, causing the Lebanese pound to lose about 90% of its value. Many households have also lost their life savings due to the collapse of several banks.

Lebanon’s leadership views tourism as the optimal method to initiate the necessary reconciliation with Gulf states—and once this is achieved, they can progress towards exporting goods and exploring additional avenues for economic expansion. Despite summer being several weeks off, flights into Lebanon are already brimming with expatriates and local travelers from nations that have lifted their travel restrictions. Hotel reservations indicate a robust demand as well.

During a recent weekend, as crowds filled the shores of Batroun in the north, with jetskiers zipping across the Mediterranean Sea, local entrepreneurs expressed hope that their nation was heading towards recovery. “Following a war that cast a long shadow over every Lebanese person, and enduring years of ostracization from Arab nations and our allies in the Gulf region, we anticipate that things will consistently thrive for us,” explained Jad Nasr, who jointly owns a private beach club. He added, “Tourism is projected to surge significantly this year. Travel agents report complete bookings, and flights to Lebanon have reached maximum capacity; there aren’t even seats left available.”

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