logo
Lebanon aims to lure back wealthy Gulf tourists to jumpstart its war-torn economy

Lebanon aims to lure back wealthy Gulf tourists to jumpstart its war-torn economy

Arab News07-06-2025
BEIRUT: Fireworks lit up the night sky over Beirut's famous St. Georges Hotel as hit songs from the 1960s and 70s filled the air in a courtyard overlooking the Mediterranean Sea.The retro-themed event was hosted last month by Lebanon's Tourism Ministry to promote the upcoming summer season and perhaps recapture some of the good vibes from an era viewed as a golden one for the country. In the years before a civil war began in 1975, Lebanon was the go-to destination for wealthy tourists from neighboring Gulf countries seeking beaches in summer, snow-capped mountains in winter and urban nightlife year-round.In the decade after the war, tourists from Gulf countries – and crucially, Saudi Arabia – came back, and so did Lebanon's economy. 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.Now, after last year's bruising war with Israel, Hezbollah is much weaker and Lebanon's new political leaders sense an opportunity to revitalize the economy once again with help from wealthy neighbors. They aim to disarm Hezbollah and rekindle ties with Saudi Arabia and other Gulf countries, which in recent years have prohibited their citizens from visiting Lebanon or importing its products.'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.On the highway leading to the Beirut airport, once-ubiquitous banners touting Hezbollah's leadership have been replaced with commercial billboards and posters that read 'a new era for Lebanon.' In the center of Beirut, and especially in neighborhoods that hope to attract tourists, political posters are coming down, and police and army patrols are on the rise.There are signs of thawing relations with some Gulf neighbors. The United Arab Emirates and Kuwait have lifted yearslong travel bans.All eyes are now on Saudi Arabia, a regional political and economic powerhouse, to see if it will follow suit, according to Lahoud and other Lebanese officials. A key sticking point is security, these officials say. Although a ceasefire with Israel has been in place since November, near-daily airstrikes have continued in southern and eastern Lebanon, where Hezbollah over the years had built its political base and powerful military arsenal.Tourism as a diplomatic and economic bridgeAs vital as tourism is — it accounted for almost 20 percent of Lebanon's economy before it tanked in 2019 — the country's leaders say it is just one piece of a larger puzzle they are trying to put back together.Lebanon's agricultural and industrial sectors are in shambles, suffering a major blow in 2021, when Saudi Arabia banned their exports after accusing Hezbollah of smuggling drugs into Riyadh. Years of economic dysfunction have left the country's once-thriving middle class in a state of desperation.The World Bank says poverty nearly tripled in Lebanon over the past decade, affecting close to half its population of nearly 6 million. To make matters worse, inflation is soaring, with the Lebanese pound losing 90 percent of its value, and many families lost their savings when banks collapsed.Tourism is seen by Lebanon's leaders as the best way to kickstart the reconciliation needed with Gulf countries — and only then can they move on to exports and other economic growth opportunities.'It's the thing that makes most sense, because that's all Lebanon can sell now,' said Sami Zoughaib, research manager at The Policy Initiative, a Beirut-based think tank.With summer still weeks away, flights to Lebanon are already packed with expats and locals from countries that overturned their travel bans, and hotels say bookings have been brisk.At the event hosted last month by the tourism ministry, the owner of the St. Georges Hotel, Fady El-Khoury, beamed. The hotel, owned by his father in its heyday, has acutely felt Lebanon's ups and downs over the decades, closing and reopening multiple times because of wars. 'I have a feeling that the country is coming back after 50 years,' he said.On a recent weekend, as people crammed the beaches of the northern city of Batroun, and jet skis whizzed along the Mediterranean, local business people sounded optimistic that the country was on the right path.'We are happy, and everyone here is happy,' said Jad Nasr, co-owner of a private beach club. 'After years of being boycotted by the Arabs and our brothers in the Gulf, we expect this year for us to always be full.'Still, tourism is not a panacea for Lebanon's economy, which for decades has suffered from rampant corruption and waste.Lebanon has been in talks with the International Monetary Fund for years over a recovery plan that would include billions in loans and require the country to combat corruption, restructure its banks, and bring improvements to a range of public services, including electricity and water.Without those and other reforms, Lebanon's wealthy neighbors will lack confidence to invest there, experts said. A tourism boom alone would serve as a 'morphine shot that would only temporarily ease the pain' rather than stop the deepening poverty in Lebanon, Zoughaib said.The tourism minister, Lahoud, agreed, saying a long-term process has only just begun.'But we're talking about subjects we never talked about before,' she said. 'And I think the whole country has realized that war doesn't serve anyone, and that we really need our economy to be back and flourish again.'
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Consumer spending in Saudi Arabia rises 9% to SAR 122.6B in June
Consumer spending in Saudi Arabia rises 9% to SAR 122.6B in June

Argaam

time38 minutes ago

  • Argaam

Consumer spending in Saudi Arabia rises 9% to SAR 122.6B in June

Consumer spending in Saudi Arabia rose by 9% to SAR 122.62 billion in June 2025, from nearly SAR 112.7 billion in the same month a year earlier. Consumer spending represents total cash withdrawals, point-of-sale (POS) transactions, and e-commerce via Mada cards. POS transactions saw a 2% year-on-year (YoY) increase to around SAR 53.98 billion in June. Data showed that 919.31 million transactions were processed through more than 2.1 million POS terminals during the same month. POS transactions represent the expenditures made by consumers using their ATM cards and credit cards at shopping malls, retail stores, pharmacies, and other retail outlets. Meanwhile, cash withdrawals from ATMs fell by nearly 5% YoY to about SAR 42.67 billion in June. These withdrawals were processed through 15,000 ATMs in 112.92 million transactions, while the number of credit cards issued reached 57.83 million. E-commerce sales through Mada cards jumped 72% YoY to SAR 25.97 billion in June. According to monthly data issued by the Saudi Central Bank (SAMA), these sales were made through 141.55 million transactions. Online sales include transactions processed through Mada cards for payments and purchases made via online shopping and applications. However, these do not include transactions conducted using Visa, Mastercard, or other credit cards.

ADES International to acquire Shelf Drilling shares through cash merger
ADES International to acquire Shelf Drilling shares through cash merger

Argaam

time3 hours ago

  • Argaam

ADES International to acquire Shelf Drilling shares through cash merger

ADES International Holding, Ltd., a subsidiary of ADES Holding Co. signed an agreement and to acquire all issued and outstanding shares of Shelf Drilling, Ltd. through a cash merger, according to a statement to Tadawul. This will take place under the laws of the Cayman Islands between ADES International Cayman ('BidCo'), a wholly owned subsidiary of ADES, and the Shelf Drilling. At completion, all Shelf Drilling shares will be cancelled for a consideration in cash of NOK 14.00 per share to the Shelf Drilling shareholders pursuant to a plan of merger entered into between Shelf Drilling, ADES and BidCo.

Avalon Pharma signs EUR 3M contract to market GLP1 products
Avalon Pharma signs EUR 3M contract to market GLP1 products

Argaam

time3 hours ago

  • Argaam

Avalon Pharma signs EUR 3M contract to market GLP1 products

Middle East Pharmaceutical Industries Co. (Avalon Pharma) signed a contract worth EUR 3 million with Adalvo Limited, a global pharmaceutical company headquartered in Malta, to secure the rights for the registration and marketing their GLP 1 products for weight loss and obesity. In a statement to Tadawul, the company said that the contract is valid for seven years, adding that the agreement allows Avalon Pharma to register, market and distribute the product under its Trademark in select countries of Middle East and North Africa, with exclusive rights for Saudi Arabia. The agreement is forecast to generate SAR 294 million over the duration of the contract, once regulatory approvals are received, and sales commence. Prior to going to market, the company will ensure receiving full approvals from the Saudi Arabian Food and Drug Authority (SFDA) as well as the respective authorities in each country in which it will market and distribute the product, the statement added. The deal includes provisions for expanding to other GLP products and potential for localized manufacturing. Avalon Pharma also expected that the performance will reflect positively in a gradual manner as sales accelerate post-launch, noting that no related parties are included in the deal. Any material developments, including expected launch date, related to this agreement will be communicated in due course, the statement indicated.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store