- ARAB NEWS
- 08 May 2025
Since 1975
BEIRUT: At the boutique hotel of Albergo in Achrafieh, Beirut, a large table of Gulf citizens sat having breakfast last week as a waitress attended to them. This once-common sight had become a rarity in recent years, making the moment particularly significant for the staff.
“We haven’t seen this in years,” the waitress told Arab News. “We are expecting more reservations to come through and more Gulf citizens to be staying with us this summer.”
For the first time in many years, Lebanese hoteliers, restaurant and shop owners and retailers are hoping for a successful tourism comeback. The latest piece of good news came when the UAE Ministry of Foreign Affairs announced last Sunday that the ban on Emirati citizens traveling to Lebanon would be lifted from May 7.
Once a favored summer destination hub for Gulf and neighboring Arabs, Lebanon had been struck by one misfortune after another since the 2006 Israeli-Hezbollah war. Despite a relatively calm decade afterward, the 2020 port explosion followed by a devastating economic collapse and the growing power of Iran-backed Hezbollah had left the country in tatters.
Rampant corruption and Hezbollah’s powerful presence soured the once warm Lebanese-Gulf relations. In 2021, both Saudi and Emirati citizens were banned from traveling to the country after a Lebanese minister criticized Arab Gulf intervention on the side of the UN-backed Yemen government against the Houthis, another Iran-backed militia. The Kingdom also halted all its fruit and vegetable imports from Lebanon in the same year after shipments were found to be carrying the illicit Captagon drug smuggled inside.
With the devastating blows suffered by Hezbollah and allied militant groups last year during their war with Israel, the tide appears to be turning. The deaths of Hassan Nasrallah and other important Hezbollah figures and a stunning pager attack, which left thousands of its fighters and supporters immobile if not dead, have significantly weakened the once-powerful militia that had Lebanon in a prolonged chokehold.
The new Lebanese government, headed by President Joseph Aoun, seems determined to usher the country into a new era, going as far as removing flags and symbols of the militant group. Although the fate of international aid still hangs in the balance, structural and economic changes are expected of the new Lebanese government, alongside the full disarmament of Hezbollah.
According to the World Bank, during the 14-month Israeli-Hezbollah war that started shortly after the events of October 7, 2023, and the war in Gaza, the estimated damage and economic loss in Lebanon stands at $14 billion, with the country needing $11 billion for reconstruction.
Arab world policies, particularly from the Arab Gulf states, seem to be softening. In March, Saudi Arabia announced it would review “obstacles” to resuming Lebanese imports and ending the ban on its citizens visiting Lebanon. This announcement came after President Aoun met Crown Prince Mohammed bin Salman in Riyadh on his first trip abroad since taking office in January.
The UAE’s loosening of restrictions on travel to Lebanon followed a meeting between President Aoun and UAE President Mohammed bin Zayed in Abu Dhabi last week. “This decision confirms the return of confidence in Lebanon and opens the door to developing the historical ties that unite the two countries,” Laura Al-Khazen Lahoud, Lebanon’s minister of tourism, said.
She expressed hope that “the remaining Gulf Cooperation Council countries will follow the UAE’s step the soonest possible, so that Lebanon can once again become a destination for its Arab brothers and a center for tourism and cultural activity in the region.”
Lahoud, who was appointed tourism minister in February 2025, has been actively working to restore trust in Lebanon’s tourism sector. With her background as executive director of the legendary Al-Bustan hotel and vice president of the Al-Bustan Music Festival, Lahoud brings valuable industry experience to her ministerial role.
Lebanon has long relied on the tourism sector, making it a pillar of its GDP and a major source of income and employment. In 2019, prior to the COVID pandemic, Lebanon welcomed 1.95 million international visitors, generating over $8 billion in tourism revenue that accounting for nearly 19 percent of the country’s GDP.
Numbers have steadily plummeted since. In 2023, the tourism sector still accounted for an estimated 30 percent of the country’s GDP, bringing in $6 billion in revenue. Lebanon’s tourism sector, generating over $5 billion annually in recent years, ranks as the country’s second most vital revenue stream after expatriate remittances, which officially approach $7 billion.
The golden era of Lebanese tourism, when hotels boasted occupancy rates above 80 percent for 100 summer days, now seems like a distant memory. In 2010, Beirut recorded an impressive 72 percent annual occupancy rate. Last summer, however, this figure dropped to an average of just 60 percent on weekends and plummeted to 20-25 percent on weekdays — well below the threshold needed for profitability.
Owing to the decline in tourism the country witnessed last year as a result of the protracted Israel-Hezbollah war, when most airlines even canceled their flights to and from the war-torn country, Lebanon’s tourism sector continues to navigate troubled waters.
Khalaf Al-Habtoor, the head of Al-Habtoor Group, a multi-billion-dollar Dubai conglomerate with interests ranging from luxury hotels to shopping malls, had expressed an intention in January to invest in Lebanon once a new government was formed.
However, a week later, he announced in a post on X: “After consulting with the board of directors of the Al-Habtoor Group, I have made a painful decision that I never wanted to reach. However, the prevailing circumstances in Lebanon — marked by a lack of security, stability, and any foreseeable improvement — have compelled us to take this step.”
Despite the ceasefire agreement between Israel and Lebanon’s government announced on Nov. 26, 2024, Israeli military airstrikes in Beirut, southern Lebanon and parts of the Bekaa Valley are still taking place, sometimes with little or no warning, prompting many countries to warn their citizens against traveling to Lebanon.
“I swear to you, we are tired. We are tired from just getting by,” says Rasha, a beautician at a hair salon in Beirut. “We have one of the most beautiful countries in the world; we used to barely have time to sit down, it was one customer after the other in the summertime, but that hasn’t been the case for years.”
Rasha and her husband are the owners of the salon and have been running the business for 20 years, nestled in the streets near Sassine Square. “You see how the Syrians got their freedom? We are on the way to ours. We are tired of being held down and I think the new government realizes that. We really aren’t asking for much here. Just bring the happiness and the hope back,” she said, referring to the “golden days” when tourists flocked to the country and financial strain was not crippling every other household.
Hospitality industry executives say they can see signs of renewal. Pierre Achkar, president of the Syndicate of Hotel Owners, told a local newspaper in February that restoration efforts are underway across all Lebanese regions, with preparations progressing rapidly to welcome visitors as in previous years.
He said the current political climate and ongoing changes have encouraged tourism business owners to implement needed reforms ahead of the summer season. He added that the current momentum aligns with positive signs pointing to a potentially vibrant tourism season, reminiscent of Lebanon’s past.
For his part, Jean Abboud, president of the Syndicate of Owners of Travel and Tourism Offices in Lebanon, emphasized last month the sector’s preparedness, stating that “our travel agencies are fully prepared to support the expected tourism rebound this summer.”
In an interview with a Lebanese TV channel, Achkar said he had sent a proposal to the Prime Minister’s Office to help bolster the country’s hospitality sector. In it, he called for the reopening of the Rene Mouawad airport in the country’s north for budget airlines and, more broadly, for the reintegration of Lebanon into the regional tourism market.
While the traditional hotel sector has experienced a decline, guesthouses and boutique hotels in Beirut are experiencing growing success. With their smaller scale and personalized service, these establishments continue to attract a loyal and expanding local and regional clientele.
Cautious optimism permeates the city. Several well-known hotels such as Le Gray, a five-star hotel in downtown Beirut, are set to reopen, promising more employment opportunities and a sense of hope for the Lebanese community.
For now, less affluent regional visitors — Syrians, Jordanians, Iraqis and Egyptians — continue to fill hotel rooms in Beirut, while Qataris and Kuwaitis, who have long made Lebanon their summer destination, remain barred from entry for now.
A brighter outlook comes from the expected increase in the number of Lebanese expatriates returning home this summer. The hope is that the government will remain committed to state building, including addressing the issue of illegal weapons.
Adding to the cautious optimism is the UAE’s recent decision to lift its travel ban on citizens visiting Lebanon. This move could prompt other Gulf states to follow suit. However, travel remains subject to conditions: Emirati citizens must register through the Foreign Ministry’s Tawajudi service and specify their place of residence in Lebanon, among other requirements.
Looking ahead, Achkar, head of the Syndicate of Hotel Owners, emphasized the sector’s broader ambitions. He said Lebanon is aiming for a year-round tourism model, much like other countries.
With its diverse offerings — from religious and recreational tourism to culinary, nature-based, and adventure experiences — Lebanon, he noted, is well positioned to attract visitors beyond the traditional summer season.
