Pyrotechnics illuminated the evening heavens above Beirut’s renowned St. Georges Hotel while classic hits 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 a golden age for the nation. Prior to the onset of the civil war in 1975, Lebanon served as a premier getaway for affluent visitors from nearby Gulf states who were drawn by its beaches during summers, mountainous landscapes covered with snow in winters, and vibrant city life throughout the year.
During the ten years following the conflict, visitors from Persian Gulf nations—including Saudi Arabia—returned to Lebanon, revitalizing its economy. However, by the start of the millennium, ties between Lebanon and these gulf states started deteriorating due to the increasing influence of Hezbollah, supported by Iran. This shift led to a steady decline in tourism, causing the nation’s economy to lose out on several billion dollars each year through reduced visitor expenditures.
Following last year’s intense conflict with Israel, Hezbollah has become significantly weakened. This shift has prompted Lebanon’s emerging political leadership to see potential for rejuvenating the nation’s economy through support from prosperous neighboring states. Their objective includes disarming Hezbollah and rebuilding relationships with Saudi Arabia and other Gulf nations that had previously banned visits from their citizens to Lebanon as well as imports of Lebanese goods.
"Tourism is a big catalyst, and so it's very important that the bans get lifted," said Laura Khazen Lahoud, the country's tourism minister.
Along the highway towards the Beirut airport, former ubiquitous banners endorsing Hezbollah’s leadership have now been substituted with commercial advertisements and signs proclaiming "a new era for Lebanon." Within central Beirut, particularly in areas aiming to draw visitors, political placards are being removed, while police and military presence has increased through more patrols.
Indications suggest improved ties with certain Gulf countries. Both the United Arab Emirates and Kuwait have recently removed multi-year travel restrictions.
Everyone is looking at Saudi Arabia, a major regional power in politics and economics, to determine whether it will take similar actions, as stated by Lahoud and other Lebanese officials. The main issue holding things back appears to be security concerns. Despite a ceasefire agreement with Israel having been established in November, daily air raids continue unabated in southern and eastern Lebanon—regions where Hezbollah has historically developed both its strong political presence and formidable military capabilities.
While tourism is crucial—contributing nearly 20% to Lebanon’s economy prior to its decline in 2019—the nation's authorities emphasize that it represents merely one element within the broader reconstruction effort they aim to undertake.
Lebanon’s farming and manufacturing industries are devastated, having taken a significant hit in 2021 following Saudi Arabia's ban on their exports. This decision came after accusations that Hezbollah was involved in drug trafficking to Riyadh. The nation's formerly prosperous middle class has been pushed into dire straits due to years of economic instability.
According to The World Bank, poverty has almost tripled in Lebanon during the last ten years, impacting approximately half of its roughly six-million population. Adding to this crisis, inflation is rampant, causing the Lebanese pound to lose 90% of its value. Many households have also depleted their savings as banks faced collapse.
Lebanon’s leadership views tourism as the optimal means to initiate the necessary reconciliation with Gulf states—and once this is achieved, they can progress towards exports and other avenues for economic expansion.
"It’s the most logical move since that’s all Lebanon can offer right now," stated Sami Zoughaib, who works as a research manager at The Policy Initiative, a think tank based in Beirut.
As summer remains several weeks ahead, flights to Lebanon are already brimming with expatriates and local travelers from nations that have lifted their travel restrictions. Hotel reservations are reportedly strong as well.
During the event organized by the tourism ministry last month, Fady El-Khoury, who owns the St. Georges Hotel, was all smiles. His father had run the establishment during its prime, and throughout the years, the hotel experienced numerous closures and reopenings due to conflicts. He expressed optimism saying, "It feels like the country is returning after 50 years."
Recently, during a weekend when crowds filled the shores of the coastal town of Batroun, and jetskiers zipped across the waters of the Mediterranean, entrepreneurs from the area expressed hopefulness about the nation’s progress.
“We are delighted, and everybody around here shares the same joy,” stated Jad Nasr, who co-owns a private beach club. “Following years of exclusion by Arabs and our Gulf siblings, we anticipate that this year will consistently see high occupancy.”
Nevertheless, tourism cannot be seen as a cure-all solution for Lebanon's economy, an economy that has been plagued by widespread corruption and mismanagement over many years.
For several years, Lebanon has been engaged in discussions with the International Monetary Fund regarding a rescue package involving billions in loans. This plan necessitates that the nation tackle corruption, overhaul its banking sector, and enhance various public services such as power supply and water distribution.
If these changes do not occur along with others, Lebanon’s affluent neighboring countries may be hesitant to invest their money there, according to experts. Even a surge in tourism would merely act like a “temporary relief” from the ongoing economic struggles instead of halting the increasing poverty in Lebanon, stated Zoughaib.
The tourism minister, Lahoud, concurred, stating that a lengthy procedure has merely started.
"We’re discussing topics we’ve never addressed before,” she stated. “I believe the entire nation has come to understand that war benefits no one, and what we truly require now is for our economy to recover and thrive once more.”
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