Latest news with #GulfTourism
The National
2 days ago
- Business
- The National
Lebanon aims to win back Gulf tourists and investors, but is it enough to save the economy?
With its sun-soaked beaches, pine-covered mountains and buzzing summer nightlife, Lebanon is hoping to once again become the playground of wealthy Gulf tourists. After years of strained relations, Beirut is making concerted efforts to reset its ties with the Gulf – a region long seen as both a political ally and economic lifeline. Since taking office in January, President Joseph Aoun has placed rebuilding Lebanon's relationship with the Gulf countries at the centre of his foreign policy agenda. The former army chief, elected after more than two years of presidential vacuum, wasted no time in launching a diplomatic charm offensive. Mr Aoun has so far visited the UAE, Saudi Arabia, Qatar and Kuwait, in an effort to re-establish Lebanon as an open destination for both tourists and investors. Gulf states have historically played a major role in rebuilding Lebanon, including after the 1975–1990 civil war and the 2006 Israel-Hezbollah conflict. Gulf tourists and investors − particularly from Saudi Arabia, Kuwait and the UAE − significantly boosted Lebanon's economy for decades by driving its tourism, real estate and hospitality sectors, especially in Beirut and mountain resort areas. However, in recent years, Lebanon's relations with its Gulf neighbours began to sour due to Iran 's growing influence over Lebanese affairs. This was primarily through its backing of the Lebanese armed group Hezbollah, which held significant sway over the country's political and military landscape. This dynamic has shifted following a year-long war between Hezbollah and Israel that ended last November. Israel's military campaign destroyed much of Hezbollah's infrastructure, eliminated the group's leader and top commanders and infiltrated its security network. Now, Lebanon seeks to revive its economy, which has been mired in crisis since 2019. The national currency has collapsed, the banking sector is in disarray and basic public services have all but crumbled. The war between Israel and Hezbollah only worsened conditions, leaving much of southern Lebanon and Beirut's southern suburbs in ruins. The World Bank estimated recovery and reconstruction needs at $11 billion. Lifting travel bans The UAE and Kuwait have both lifted years-long travel bans on Lebanon after President Aoun's recent visits, opening the door for their citizens to return to the country. 'Lebanon is moving in the right direction, getting back to the Arab fold – and that's a Lebanese demand before anything else,' Fouad Dandan, Lebanon's ambassador to the UAE, told The National. ' Emiratis love Lebanon. They don't go there just for tourism. Many have properties in Lebanon, and some may even invest in the country – which would create a boost that is not only seasonal and would help the economy,' he said. Lebanon is also seeking to benefit from the UAE's expertise in key sectors, including security and renewable energy, added Mr Dandan. Emirati technical teams have already visited Beirut to explore co-operation and knowledge transfer. 'We have a golden opportunity,' he said. All eyes are now on Saudi Arabia to see whether it will follow suit. But Riyadh remains cautious, and a key sticking point is security, according to sources. Saudi Arabia has banned its citizens from travelling to Lebanon since 2021 because of security concerns. The kingdom was Lebanon's top destination for agricultural exports in 2019, accounting for 22.1 per cent of total shipments, according to a Lebanese government report published in 2020. However, Riyadh suspended imports of Lebanese fruits and vegetables in April 2021, citing drug-smuggling concerns and accusing Beirut of failing to take action. Lebanon's security forces say they are stepping up efforts to protect key sites, especially Beirut's international airport and tourist hotspots. 'Preparations are under way to welcome tourists, though the state is working with a limited budget. Efforts have been made to improve visitors' experience: the road from the airport to Beirut has been repaired, and political banners and posters were removed months ago,' a senior security official involved in the operations told The National. 'What's new is the increased police presence near airport routes, especially at night. Police staffing has recently expanded to accommodate these new duties, and additional checkpoints are now active, with clear instructions to search suspicious vehicles and fine violators,' the source added. 'Overall, the security situation is stable. The main concern remains the potential for Israel to disrupt the atmosphere, but internally, the focus is firmly on ensuring safety for both residents and visitors.' Despite a ceasefire agreed in November between Israel and Hezbollah, the Israeli military continues to carry out strikes in Lebanon. Last week, just before Eid Al Adha, at least 10 strikes hit Beirut's southern suburbs – a sprawling area known as Dahiyeh. It was the fourth time that Dahiyeh has been bombed since the November truce. Israel also continues to bomb southern Lebanon almost daily and maintains control over five military posts along the southern border. The ceasefire says Hezbollah must pull all military equipment and fighters out of southern Lebanon and says all non-state militant groups must be disarmed across the country. Lebanon remains under international pressure to reassert full state sovereignty. Mr Aoun has repeatedly said the decision to centralise arms under state authority has been taken, but says this can only be achieved through dialogue rather than force. Promising summer amid challenges Many in Lebanon are hopeful for a booming summer season. 'Eid Al Adha gives a glimpse of how this summer will look,' Jean Abboud, president of the Association of Travel and Tourist Agents in Lebanon, told The National. 'We're seeing new nationalities this year: Emiratis, Kuwaitis and Qataris. Gulf tourists tend to spend more time and money in the country.' 'In May, airport traffic rose 11 per cent compared to the same period last year. The momentum is encouraging.' But analysts caution that this is not enough to lift the country out of its deep economic crisis. 'Tourism accounts for 20 per cent of GDP, and Gulf tourists generate 50 per cent of tourism revenue. While the rebound in Gulf tourism and renewed investment are essential catalysts, they alone cannot secure Lebanon's full recovery or eliminate the need for IMF support,' said Lebanese economist Walid Abousleiman. 'The scale of Lebanon's financial crisis and the depth of required reforms mean that international assistance potentially including an IMF programme remains necessary to restore fiscal and monetary stability, restructure debt and rebuild confidence in the banking sector.' Since the 2019 crisis, which saw the Lebanese currency lose over 90 per cent of its value and bank deposits decimated, with losses estimated at more than $70 billion, Lebanon has failed to implement most of the IMF's demanded reforms. Economy Minister Amer Bisat told The National last month that the country faces deep-rooted challenges across multiple sectors − including banking, electricity, production costs, infrastructure and governance. 'I don't think that small and quick steps will bring back the confidence of investors. What will bring it back is when investors see we are addressing these issues,' said the minister. Mr Abousleiman noted that "Gulf tourists bring vital foreign currency and support key sectors but cannot alone restore Lebanon's economy to pre-crisis levels". 'Lebanon's path to recovery is a marathon, not a sprint. Gulf tourism and investment are promising first steps, but real, lasting change requires deeper reforms and international support,' he added.
The National
2 days ago
- Business
- The National
Lebanon aims to woo back Gulf tourists and investors, but is it enough to save the economy?
With its sun-soaked beaches, pine-covered mountains and buzzing summer nightlife, Lebanon is hoping to once again become the playground of wealthy Gulf tourists. After years of strained relations, Beirut is making concerted efforts to reset its ties with the Gulf – a region long seen as both a political ally and economic lifeline. Since taking office in January, President Joseph Aoun has placed rebuilding Lebanon's relationship with the Gulf countries at the centre of his foreign policy agenda. The former army chief, elected after more than two years of presidential vacuum, wasted no time in launching a diplomatic charm offensive. Mr Aoun has so far visited the UAE, Saudi Arabia, Qatar and Kuwait, in an effort to re-establish Lebanon as an open destination for both tourists and investors. Gulf states have historically played a major role in rebuilding Lebanon, including after the 1975–1990 civil war and the 2006 Israel-Hezbollah conflict. Gulf tourists and investors − particularly from Saudi Arabia, Kuwait and the UAE − significantly boosted Lebanon's economy for decades by driving its tourism, real estate and hospitality sectors, especially in Beirut and mountain resort areas. However, in recent years, Lebanon's relations with its Gulf neighbours began to sour due to Iran 's growing influence over Lebanese affairs. This was primarily through its backing of the Lebanese armed group Hezbollah, which held significant sway over the country's political and military landscape. This dynamic has shifted following a year-long war between Hezbollah and Israel that ended last November. Israel's military campaign destroyed much of Hezbollah's infrastructure, eliminated the group's leader and top commanders and infiltrated its security network. Now, Lebanon seeks to revive its economy, which has been mired in crisis since 2019. The national currency has collapsed, the banking sector is in disarray and basic public services have all but crumbled. The war between Israel and Hezbollah only worsened conditions, leaving much of southern Lebanon and Beirut's southern suburbs in ruins. The World Bank estimated recovery and reconstruction needs at $11 billion. Lifting travel bans The UAE and Kuwait have both lifted years-long travel bans on Lebanon after President Aoun's recent visits, opening the door for their citizens to return to the country. 'Lebanon is moving in the right direction, getting back to the Arab fold – and that's a Lebanese demand before anything else,' Fouad Dandan, Lebanon's ambassador to the UAE, told The National. ' Emiratis love Lebanon. They don't go there just for tourism. Many have properties in Lebanon, and some may even invest in the country – which would create a boost that is not only seasonal and would help the economy,' he said. Lebanon is also seeking to benefit from the UAE's expertise in key sectors, including security and renewable energy, added Mr Dandan. Emirati technical teams have already visited Beirut to explore co-operation and knowledge transfer. 'We have a golden opportunity,' he said. All eyes are now on Saudi Arabia to see whether it will follow suit. But Riyadh remains cautious, and a key sticking point is security, according to sources. Saudi Arabia has banned its citizens from travelling to Lebanon since 2021 because of security concerns. The kingdom was Lebanon's top destination for agricultural exports in 2019, accounting for 22.1 per cent of total shipments, according to a Lebanese government report published in 2020. However, Riyadh suspended imports of Lebanese fruits and vegetables in April 2021, citing drug-smuggling concerns and accusing Beirut of failing to take action. Lebanon's security forces say they are stepping up efforts to protect key sites, especially Beirut's international airport and tourist hotspots. 'Preparations are under way to welcome tourists, though the state is working with a limited budget. Efforts have been made to improve visitors' experience: the road from the airport to Beirut has been repaired, and political banners and posters were removed months ago,' a senior security official involved in the operations told The National. 'What's new is the increased police presence near airport routes, especially at night. Police staffing has recently expanded to accommodate these new duties, and additional checkpoints are now active, with clear instructions to search suspicious vehicles and fine violators,' the source added. 'Overall, the security situation is stable. The main concern remains the potential for Israel to disrupt the atmosphere, but internally, the focus is firmly on ensuring safety for both residents and visitors.' Despite a ceasefire agreed in November between Israel and Hezbollah, the Israeli military continues to carry out strikes in Lebanon. Last week, just before Eid Al Adha, at least 10 strikes hit Beirut's southern suburbs – a sprawling area known as Dahiyeh. It was the fourth time that Dahiyeh has been bombed since the November truce. Israel also continues to bomb southern Lebanon almost daily and maintains control over five military posts along the southern border. The ceasefire says Hezbollah must pull all military equipment and fighters out of southern Lebanon and says all non-state militant groups must be disarmed across the country. Lebanon remains under international pressure to reassert full state sovereignty. Mr Aoun has repeatedly said the decision to centralise arms under state authority has been taken, but says this can only be achieved through dialogue rather than force. Promising summer amid challenges Many in Lebanon are hopeful for a booming summer season. 'Eid Al Adha gives a glimpse of how this summer will look,' Jean Abboud, president of the Association of Travel and Tourist Agents in Lebanon, told The National. 'We're seeing new nationalities this year: Emiratis, Kuwaitis and Qataris. Gulf tourists tend to spend more time and money in the country.' 'In May, airport traffic rose 11 per cent compared to the same period last year. The momentum is encouraging.' But analysts caution that this is not enough to lift the country out of its deep economic crisis. 'Tourism accounts for 20 per cent of GDP, and Gulf tourists generate 50 per cent of tourism revenue. While the rebound in Gulf tourism and renewed investment are essential catalysts, they alone cannot secure Lebanon's full recovery or eliminate the need for IMF support,' said Lebanese economist Walid Abousleiman. 'The scale of Lebanon's financial crisis and the depth of required reforms mean that international assistance potentially including an IMF programme remains necessary to restore fiscal and monetary stability, restructure debt and rebuild confidence in the banking sector.' Since the 2019 crisis, which saw the Lebanese currency lose over 90 per cent of its value and bank deposits decimated, with losses estimated at more than $70 billion, Lebanon has failed to implement most of the IMF's demanded reforms. Economy Minister Amer Bisat told The National last month that the country faces deep-rooted challenges across multiple sectors − including banking, electricity, production costs, infrastructure and governance. 'I don't think that small and quick steps will bring back the confidence of investors. What will bring it back is when investors see we are addressing these issues,' said the minister. Mr Abousleiman noted that "Gulf tourists bring vital foreign currency and support key sectors but cannot alone restore Lebanon's economy to pre-crisis levels". 'Lebanon's path to recovery is a marathon, not a sprint. Gulf tourism and investment are promising first steps, but real, lasting change requires deeper reforms and international support,' he added.
Arab News
23-05-2025
- Business
- Arab News
Food wastage an obstacle to achieving sustainability goals
The Gulf states' booming tourism industries and internationalized economies have drawn people from across the globe in recent years. Combined with a growing citizenry, this movement has led to a regional population of more than 57 million. The opportunity here is that these additional human resources are driving the region's economic growth. But the challenge is that this growing population is exerting additional pressures on food supply in the region. Food consumption in the Gulf is expected to rise by approximately 2.8 percent annually to reach 56.2 million tonnes in 2027. Tourism and population growth are the primary drivers. States in the region have attracted record-breaking numbers of tourists in recent years, going beyond traditional destinations like Dubai and Doha to now also include Riyadh and other Gulf cities. The consequent surge in resorts, hotels and innovative culinary experiences have boosted overall food production and consumption. But tourists alone are not driving this growth. The Gulf population boasts rising disposable incomes and favorable socioeconomic conditions. The lifestyle in high-income societies involves frequent spending on food experiences due to both personal preference and social commitments. Another driver of food consumption is the rapid expansion of the food services and delivery sector, offering the Gulf consumer easy access to diverse cuisines. The growing popularity of food delivery services like Getir, Uber Eats and Deliveroo have transformed how people consume and think about food. This cosmopolitan population, with its rising wealth and outgoing lifestyle, has ushered in an advanced gastronomical culture in the region. More than 50 percent of the Gulf population is under 25 years of age and this young population is driving the region's cultural revolution. The increase in food consumption has provided stimulus to various economic sectors and increased imports of essential food products. However, with more food comes more wastage — and the numbers are beginning to alarm policymakers and environmental experts alike. With more food comes more wastage — and the numbers are beginning to alarm policymakers and environmental experts alike. Zaid M. Belbagi On average, food wastage in the Gulf Cooperation Council is approximately 150 kg per person per year, 14 percent higher than the global average of 132 kg. In Saudi Arabia alone, 4 million tonnes of food is wasted annually. This is not just a domestic issue for the region. Food is wasted along the entire supply chain, during import, delivery, storage and in restaurants. As the GCC states rely heavily on imported goods, about 18 million tonnes, or a third of all imported food, ends up in landfill. But a significant proportion of food wastage takes place at the consumer level. Food is a central element of the Arab culture of hospitality. In Arab homes, there is a tendency toward overpreparation and abundance. Generosity is deeply rooted in the Arab and Islamic cultures and hosts often prepare large quantities of food for guests. This problem is particularly pronounced during Ramadan. In this period, food wastage is even higher, with up to half of prepared food being discarded. Bahrain, for example, produces more than 400 tonnes of food waste daily during Ramadan, while in Saudi Arabia wastage during Ramadan reaches 4,500 tonnes per day. The irony of the Gulf region's overreliance on food imports and high levels of food wastage is not missed by anyone. Zaid M. Belbagi As people in the region are increasingly entering the public sphere, the Gulf is also seeing a surge in dining-out culture. Full-service restaurants held 47 percent of the market share in 2024. This translates into high levels of daily food production, often exceeding the actual demand. In the UAE, 38 percent of food in the hospitality sector is wasted. The growing popularity of buffets, particularly prevalent in luxury hotels and resorts, has contributed significantly to this challenge, with large amounts of freshly prepared food discarded each day. The irony of overreliance on food imports and high levels of food wastage is not missed by anyone. Economically, high wastage increases the burden on national budgets due to the high cost of food imports and waste management. As an example, food waste in the UAE costs the country more than $3.5 billion annually. In addition, the environmental impact of this exercise is alarming. Wasted food means wasted water, energy, transportation and plastic packaging, all of which contribute to avoidable carbon emissions. This is not all. The accumulation of food waste in landfill is also connected to the release of methane into the environment. The GCC states are racing ahead in sustainability investments, climate change mitigation and addressing the challenges of water scarcity and rising temperatures. Their innovative efforts in developing irrigation systems, water desalination technologies and agricultural systems have received international acclaim. Yet, high food wastage remains a fundamental obstacle to achieving the sustainable development that all Gulf national visions aspire for. Not only does it undermine the region's food security, but it also adds to the very environmental challenges that these states are attempting to mitigate. Addressing this issue is vital for conserving resources, reducing emissions and balancing national budgets. Wasted food also means wasted resources and energy while millions in the region starve. This is counterproductive for the narrative of growth and development that defines the region today.
