Tourism recovery eases Lebanon’s economic crisis
Eid al-Fitr comes to Lebanon for the fourth consecutive year as they are going through the height of an economic and financial crisis, exacerbated by a crisis in the political arena this year as the country suffers from a presidential vacuum and the parliament is unable to elect a new president for the republic .
The Lebanese currency continued to move higher against the US dollar as Eid began, recording levels of 96,000 LBP per dollar on the black market, compared to 143,000 LBP per US dollar on March 21, 2023, at the Lebanese Central Bank as After dollar sellers intervened through trading platforms at 87,000 Lebanese pounds per dollar, there was general relief in the country, despite skepticism about the central bank, given that its foreign exchange reserves reached a low level of 93 by the end of March 2023. billion, the bank was unable to continue injecting dollars into the market.
not festive
Despite the success of the measures taken by the Bank of Lebanon in ending the rapid collapse of the Lebanese pound, there was no sign of Eid celebrations in the atmosphere in the country this year, except for crowds of Lebanese expatriates and Arab and foreign tourists holidaying in the country as they passed through the airport. The inbound activity recorded a remarkable activity. It has been featured in hotel and flight bookings coming to Lebanon in recent days.
Countries with the lowest travel costs in the world
Jean Berluti, secretary-general of the Lebanese Tourism Federation, said in an interview with “Arab Economic Sky News” that the number of tourists coming to Lebanon during this period is because the country has become one of the cheapest tourist countries in the world. The collapse of the Lebanese currency and the impact of the economic crisis. This makes the prices of various travel services cheaper for holders of hard currencies such as the US dollar and the euro, noting that a hotel room can cost around US$300 in countries around the world, while in Lebanon it can cost between US$70 and US$100.
Hotel booking 70-80%
Beiruti revealed that on the eve of Eid al-Fitr, the booking rate of hotels along the Lebanese coast was between 70% and 80%, mainly supported by tourists coming to Lebanon led by Iraqi, European and Jordanian tourists, indicating that the matter will have a positive impact on institutions in all sectors . tourism in the country.
$1 billion in revenue during the holidays
According to Beiruti, Lebanon’s restaurants are set to see a buoyant movement during Eid after a decline in the first three months of 2023, with revenues from tourism in Lebanon expected to reach about half a billion dollars during the period.
state finances
Despite the positive climate experienced by the Lebanese tourism industry, the financial outlook for the country does not appear to be bright, especially since many events related to the Lebanese and foreign prosecution process will take place in the coming days and months, Bank Governor du Liban, Riad Salameh and several board chairmen were exposed The bank, in addition to being empowered to elect a new governor for the Central Bank of Lebanon, an era that lasted 30 years as Governor Riad Salameh’s term of office draws to a close in July 2023.
Lebanon.. allows the use of US dollars in the price of tourist services
exchange rate expectations
Economist Dr Pierre El-Khoury told the Sky News Arab Economy website that what happened to the Lebanese bank’s control of the collapse of the Lebanese currency from late March until now was the result of the country’s political authorities wanting the Lebanese central bank to The result of the long intervention through Ramadan and Eid, and pointed out that the exchange rate of the US dollar against the Lebanese pound may go after Eid due to the strong intervention of the government and its impact on the economy. Increased discipline, which would lead to the withdrawal of sterling liquidity from the market, as it would be accompanied by the dollarization of public sector wages and some private sector wages.
Indictment against bank pillar
According to El-Khoury, the impact on the country’s financial situation of a foreign prosecution of a pillar of Lebanon’s banking system will be twofold. The first is the impact of the turmoil and the inability to predict what is going to happen, as Lebanon does not have any clear mechanism for dealing with any direct allegations that could be made against the Governor of the Bank of Lebanon, or even the issuance of an international warrant for his arrest and the implications that might result, And facing the second is positive because these indictments will be a bright spot on the path to passing accountability reform.
Al-Khoury noted that the Lebanese government began marketing a new figure for the Bank of Lebanon governorship as it began preparing for a scenario in which Eurojust issued an arrest warrant for Bank of Lebanon governor Riad Salameh. The central bank said that the coming period in Lebanon could be filled with many contingencies, especially during Ramadan next May.
The agreement with the IMF has not yet been implemented
It is worth noting that Lebanon announced in April 2022 that it had reached an expert-level agreement with the International Monetary Fund. According to the rescue and reform plan approved by the government, Lebanon is entitled to financial support and is based on five pillars, namely, the restructuring of the financial sector. , to implement financial reforms that ensure the reform of state-owned enterprises. For the country, strengthening the governance framework, combating corruption, combating money laundering and financing terrorism, and establishing a reliable and transparent currency and exchange system.
However, a year after the deal was signed, Lebanon has yet to introduce any reforms to pave the way for it to receive backing from the International Monetary Fund, and parliament has failed to pass legislative amendments needed for the deal to take effect, threatening to derail any rescue Work.
Lebanon.. expects an influx of about 1.5 million tourists in summer