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Page 1: © EuroMed@Change 2013 1 · 1970. In 2011, it generated €174 billion of revenue, a multiplication by a factor of 40 compared to 1970. For the last two decades, the eleven countries

© EuroMed@Change 2013 1

Page 2: © EuroMed@Change 2013 1 · 1970. In 2011, it generated €174 billion of revenue, a multiplication by a factor of 40 compared to 1970. For the last two decades, the eleven countries

© EuroMed@Change 2013 2

Page 3: © EuroMed@Change 2013 1 · 1970. In 2011, it generated €174 billion of revenue, a multiplication by a factor of 40 compared to 1970. For the last two decades, the eleven countries

© EuroMed@Change 2013 3

Building EuroMed partnerships

This guide is a Doing business toolkit dedicated to

clusters, SMEs, or entrepreneurs interested in

developing business partnerships in the tourism

sector in Lebanon. It provides an overview of the

main opportunities available for the private sector, as

well as concrete and useful data to those interested

to go further (contacts, agenda of events, etc.).

References

The Mediterranean Business Guide, focus on Tourism

in Lebanon has been prepared by Fondation Sophia

Antipolis under the EuroMed@Change Project, a

Preparatory Action initiated by the European

Parliament and implemented by the European

Commission (DG Enterprise and Industry).

EuroMed@Change proposes new dynamics for SME

and cluster internationalisation between Europe and 4

targeted partner countries: Morocco, Tunisia, Egypt

and Lebanon. It is managed by four organisations

from across Europe (ANIMA Investment network as

Project leader, the European Business Innovation

Centre Network, INNO AG and the Fondation Sophia

Antipolis as partners) and it coordinates with more

than 45 associated regional business, finance and

innovation networks.

Authors

This Business guide has been prepared by Jean-Noël Durvy, with contributions from Nadège Bouget, from the Fondation Sophia Antipolis. Support has been provided by ANIMA Investment Network for the FDI data (Zoé Luçon, Amina Ziane Cherif), and the layout (Lauriane Ammouche

Disclaimer

This publication has been produced with the support

of the European Commission. The contents of this

publication are the sole responsibility of Fondation

Sophia Antipolis and can under no circumstances be

regarded as reflecting the views of the European

Union”.

Copyright

© EuroMed@Change May 2013. No part of this

publication may be reproduced without express

authorisation. All rights reserved.

1. Mediterranean overview..............................p.5

2. Market trends and opportunities...................p.6

3. Foreign direct investments..........................p.8

4. Key actors.......................................................p.10

5. National policies.............................................p.11

6. Selected programmes & initiatives...............p.13

7. Major business events..................................p.14

Table of contents

List of acronyms

ANIMA-MIPO: Mediterranean Foreign Direct

Investments and partnerships announcements

Observatory implemented and managed by

ANIMA

FDI: Foreign Direct Investment

MED10 countries: Algeria, Egypt, Israel, Jordan,

Lebanon, Libya, Morocco, Palestine, Tunisia,

Turkey.

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© EuroMed@Change 2013 4

Page 5: © EuroMed@Change 2013 1 · 1970. In 2011, it generated €174 billion of revenue, a multiplication by a factor of 40 compared to 1970. For the last two decades, the eleven countries

© EuroMed@Change 2013 5

Mediterranean Overview

A challenging context

Tourism is vital for the economy of most South and

East Mediterranean countries. It accounts for an

essential part of the GDP, and, as a very labour

intensive activity, generates a significant number of

jobs. It also has a strong ripple effect on other

productive sectors such as agriculture, industry and

services.

Mediterranean tourism (Southern Europe included)

has grown from 58 million international arrivals in

1970 to 306 million in 2012 according to the World

Tourism Organisation. The Mediterranean is one of

the world’s leading tourism markets with

approximately 30% of international arrivals for more

than 40 years. International tourism generated €4.3

billion of revenue across the Mediterranean Basin in

1970. In 2011, it generated €174 billion of revenue, a

multiplication by a factor of 40 compared to 1970.

For the last two decades, the eleven countries of the

Southern Mediterranean (Algeria, Egypt, Israel,

Jordan, Lebanon, Libya, Morocco, Palestine, Syria,

Tunisia and Turkey) have recorded the highest growth

rate in inbound world tourism. In the same period,

domestic tourism also increased rapidly. This trend

came to an abrupt halt in early 2011 during the Arab

Spring turmoil, but seems to resume in 2012 and

2013. Political uncertainty has the potential to impact

negatively on visitors’ perceptions. Swift

implementation of a communications response is

crucial to reassure tourists that the destination is safe,

accessible, ready and able to receive visitors. It is also

important to have a diversified tourism product to

cater to different customer segments and motivations.

Business and MICE tourism act as good support and

buffer to downturns in the leisure tourism segment.

Sustainable tourism

The development of sustainable tourism appears to

be a priority for Tunisia, Morocco, Egypt and

Lebanon, in particular with the development of

ecotourism. With 46,000 km of coastline, the number

of tourists in the Mediterranean basin is 80%

concentrated on the coast. Sustainability of

Mediterranean tourism goes through the

diversification of the tourism offer, valuing the

Mediterranean diversity: ecotourism, cultural, urban,

rural and religious tourism. Moreover, since some

years now, a change in customer behaviour has been

registered. Indeed, the increase in number of “short”

holidays favour trips to closer destinations while the

emergence of theme trips (ecotourism) and targeted

tourist activity such as hiking, golf has boosted new

forms of tourism offers. The tourism market is

therefore more segmented and retaining tourists have

become a very difficult task. In order to give a boost

to their tourism industry, the MED countries have

therefore to adapt their products to new customer

expectations, work on their competitive differentiation

and identify development priorities. The new trends

for the development of tourism can enrol into the

context of responsible tourism which is characterised

by a respect for the environment and culture of the

people of the territories, which leads to the need to

establish a true environmental policy: sustainable

tourism taking into account economic, social and

environmental impacts.

Health and wellness tourism

Morocco, Tunisia, Lebanon and Egypt have a

great potential for medical and wellness tourism.

Health tourism comprises all travel activities for a

wide range of health and wellbeing purposes such as

healthcare, health assessment, surgery and operation,

plastic surgeries, beauty, healing, cure, rehabilitation,

convalescence, combined with leisure, recreational

and cultural activities at the visited destination.

Tunisia is already well established in this sector

aiming for strong growth, compared to Lebanon and

Egypt. Egypt is considered has a new entrant, will

face severe competition.

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© EuroMed@Change 2013 6

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© EuroMed@Change 2013 7

Tourists by Region of origin 2012 Source: Ministry of Tourism

Market Trends and Opportunity

A key economic sector

The tourism industry in Lebanon has been

historically important to the local economy and remains

to this day to be a major source of revenue for

Lebanon. The World Travel and Tourism Council

(WTTC) estimates that Lebanon’s tourism industry

contributes €3.2 billion to the country’s economy in

2012, equivalent to around 10% of GDP. Direct

employment in the sector reaches 120 000 jobs,

representing 9% of total employment in Lebanon this

year.

Since tourism touches all sectors of the economy, its

real direct and indirect impact is even greater. WTTC

forecasts tourism generates €12 billion or 35,5% of

overall economic activity in Lebanon in 2012, including

322 500 jobs representing 24% of total employment in

2012.

According to the World Travel & Tourism Council

(WTTC), the Travel and Tourism industry continues to

contribute significantly to employment, generating

120,000 direct jobs in 2012 and 322 500 jobs in total

(9.0% and 24.0% of total employment respectively).

This number however is expected to fall by 2.1%. Total

jobs are also expected to follow the same trend with a

1.8% decrease in 2013, to reach 317,000 jobs.

This labor intensive industry benefits from a large pool

of skilled and multilingual labor force, which has been a

main driver for the industry’s growth.

The number of tourists to Lebanon has increased

substantially over the years. 2010 was an exceptional

year for Lebanon’s tourism industry with a total number

of tourists amounting to 2.4 million and registering a

27% increase from 2009 levels, one of the highest

rates in the world. Since 2011 however, numbers have

witnessed a drop due to regional turmoil, reaching 1.7

million tourists in 2011 and 1.4 million in 2012.

A diversified tourist offer

Before the Lebanese Civil War, Beirut was widely

regarded as "The Paris of the Middle East," often cited

as a financial and business hub where visitors could

experience the Levantine Mediterranean

culture.Lebanon's diverse atmosphere and ancient

history make it an important destination which is slowly

rebuilding itself after continued turmoil. Lebanon offers

plenty: from ancient Roman ruins, to well preserved

castles, limestone caves, historic Churches and

Mosques, beautiful beaches nestled in the

Mediterranean Sea, world renown Lebanese cuisine,

nonstop nightlife and discothèques, to mountainous ski

resorts.

Significant private investment is currently being made

in the modernization and expansion of this sector and

international hotel companies have returned to

Lebanon. Casino du Liban, which historically constituted

a major tourist destination, reopened in 1996. Lebanon

is one of the country in the Arab world that offers skiing

and related winter sports activities. The largest ski

resort in the country has been expanded and

modernized. The Government believes that, because of

the return of peace and stability to the country and

with the development of the necessary infrastructure,

tourism will again contribute significantly to Lebanon's

economy. Lebanon's tourism industry also relies on the

large number of Lebanese living abroad, who return

regularly to the country during the summer season.

Luxury continues to dominate

Lebanon’s tourism infrastructure continues to be

dominated by luxury, notably in the travel

accommodation market. The addition of the Four

Seasons and The Gray Hotel to the country’s hotels

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© EuroMed@Change 2013 8

offering in 2009 has intensified competition in the

luxury segment, with the long-reigning Phoenicia

hotel now facing competition from these two new

players. Among upcoming luxury brands in the

pipeline, a Kempinski, Grand Hyatt, and Landmark

hotel are expected to be completed in 2012. This

leaves Lebanon with a lack of budget, value-for-

money travel accommodation outlets despite

developments in “eco” offerings in the country and

opportunities in adventure tourism and trekking.

Health and wellness emerging

Lebanon is increasingly positioned as a regional hub

surgery, with a number of specialised medical centres

having established a good reputation across the

region. Travel agencies offer medical tourism

packages, blending Lebanon’s attractive leisure

tourism proposition with the proficiency of its human

resources in the healthcare sector. The country is also

boosting its spa offering, with a number of health and

wellness resorts like Edde Sands already popular

among tourists, and new outlets due to open during

the forecast period, like the Naas Wellness Resort and

the Byblos Sud Resort.

Ecotourism

Ecotourism has a rich background of natural

diversity and a wide range of outdoor activities. With

an original landscape consisting of mountains,

forests, wildlife, beaches, snow fed rivers, caves,

valleys and gorges, Lebanon is becoming more of an

outdoor destination where people can visit its natural

reserves and practice their ecotourism activities.

Lebanon's nature and geography, which are unique to

the Middle East region, allow the practice of outdoor

activities (mainly concentrated in the summer

season). Nowadays, these activities are gaining more

interest from nature lovers and becoming well

equipped with the specific requirements and facilities.

Although Lebanon is considered to be a summer

destination, winter sports are becoming more in

demand due to the close geographical location of the

mountain peaks from the Mediterranean Sea and the

unique winter experience that visitors have. Lebanese

winter sports include Alpine skiing and Cross Country

in addition to paragliding, snowmobiling, and hiking.

Lebanese expatriates are key source of arrivals

Lebanese expatriates are a key source driving growth

in tourism arrivals every year. Although there are only

four million Lebanese citizens living in Lebanon, more

than twice this number lives abroad, with many of

these expatriates tending to return home to visit the

country on a regular basis. Among young expatriates,

the majority comes back at least once a year, and

many visit the country several times a year. The

proliferation of low-cost airlines in the region has

opened up more opportunities for those living in the

Gulf to visit at weekends, during holidays and on

special occasions. They tend to stay with friends

and/or family, spending money on entertainment and

outings.

KIDZMONDO, A MAJOR CHILDREN’S INDOOR THEME PARK,

Kidzmondo, will open on June 1, 2013 in Beirut Waterfront,

Downtown, near BIEL. The $25 million project is owned by

‘Kidz SAL’, a company founded and owned by two Lebanese

investors: Chairman Ali Kazma, owner of Kaztel & Kazma

Tradin g, and Vice Chairman Hind Berri, co-owner of Kzone

Outdoor Advertising Group, as well as other investors.

Partners on the project plan to franchise KidzMondo in Arab

and European countries.

“KidzMondo has signed a franchise deal in Istanbul with

Dogan Group,” said Mirna Soueid, Marketing and Events

Manager. KidzMondo will be located in Istanbul’s Trump

Towers, on the European side of the city. The theme park

will be launched by end-2013. Another KidzMondo is

underway in Abu Dhabi. The company already found a

franchisee in Abu Dhabi. “Other franchises are being

finalized for Qatar and Saudi Arabia,” she said. More

KidzMondo locations are in the pipeline, including a few

locations in different countries across Europe.

The concept of KidzMondo is to create a kid-sized replica of

the city where children can choose adult careers and act

them out through various role-playing activities. The

edutainment theme park's location in Beirut has an area of

4,200 square meters, with 10,300 square meters of built-up

space. It includes child-sized workstations for up to 80

professions, in collaboration with institutions such as Middle

East Airlines, Bank Audi, MTV, LibanPost, the American

University of Beirut Medical Center, Sukleen, and Burger

King, among others.

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© EuroMed@Change 2013 9

Foreign Direct Investments

The main economic sectors in Lebanon with the

greatest potential for foreign direct investment of

capital include: Tourism, business and financial

services, ventures in real estate field, computer science

and software, medical services, education, food

industry, industrial activities. Factors giving Lebanon a

strong position to face competition may be specified as

follows: living standard, availability of labour relevant

qualifications, access to regional markets, possibility of

establishing joint - ventures, possibilities to purchase

plots of land and properties, adequate transport

infrastructure; professional staff, access to local

markets, organisational environment, research and

development environment, political and economic

stability, IT infrastructure and communication, low

labour costs, international image of business

environment.

Investments in the tourism sector have been one of

the most important drivers behind Lebanon’s economic

growth. In 2012, capital investments to the Tourism

sector reached a total of €1 billion. Lebanon’s unique

features that extend from cultural to religious, business

and winter tourism have been attracting local as well

as foreign investors to exploit Lebanon’s diverse

opportunities.

Competitive Advantages

Leisure attractions: Lebanon has been cited by the

CNN and the New York Times as the number 1 city

in the world for its unique beaches and resorts, and

Beirut’s vibrant nightlife

Culture and religious tourism

A unique landscape: Lebanon is endowed with a

unique landscape and a natural heritage and a mild

climate that distinguish it from all the neighboring

countries

Human Resources: Lebanon’s educated and

multilingual workforce is one of the major strengths

of the tourism industry as people are trained to

assist and receive tourists with various cultural

backgrounds

Investment Incentives and climate: The investment

climate has been very favorable to foreign as well

as local investors, facilitated by increasing

government support to the sector. More

specifically, Investment Law No.360 provides

tourism related projects with generous incentives

ranging from tax exemptions, labor incentives and

other fiscal incentives.

One of the key sectors for investments is medical

tourism and more and more specifically projects that

capitalize on Lebanon’s health care body which is one

of the best in the world. Statistics show that Lebanon

has one of the highest ratio of beds to population (34

beds per 10,000 population compared to 72,000 in

France) and one of the highest ratio of doctors to

population (33 doctors per 10,000 compared to 37 in

France). Today Lebanon has an under-supply of

rehabilitation centers or post-surgery centers that

would provide long term care for specific cases. In

addition, Lebanon lacks wellness centres that could

capitalise on the weather as major asset.

Lebanon: FDI and partnership project announcements in tourism (2003-2013, ANIMA-MIPO)

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© EuroMed@Change 2013 10

The 10 biggest Tourism FDI announcements since 2003 (source ANIMA-MIPO)

Investor Origin Date Project FDI (€m) Type

Al Sayer / Al Dhow Kuwait 2008

Levant Holding to relaunch its multi-billion

'Phoenicia village' project in Beirut, after two

years of pause due to Israel's military strike in

2006

1577 Greenfield

Gulf Finance Investment Saudi Arabia 2005 Creation of the Sannine Zenith winter sport

resort for 1.4 billion USD 1125.31 Greenfield

Al Nakheel United Arab

Emirates 2006

Launch in Beirut of the real estate project

'Dbayeh Waterfront City' amounting to USD

900m

725.81 Greenfield

Rusd Investment Bank Malaysia 2004 Works on Marina City Liban, a major real estate

project, are to start in early 2005 262.08 Greenfield

Al Habtoor Properties United Arab

Emirates 2004

Building of the Metropolitan City Center, a mall

and housing complex in Beirut 120.59 Greenfield

LMI - Landmark

International Kuwait 2005 Building of a 5-star hotel for USD149 million 119.8 Greenfield

Leisure Hill Iraq 2003 Investment in Sinbad's World (hotel and leisure

park) 119.34

Financial JV,

partial

acquisition

Kempinski Hotels Switzerland 2010

The hospitality chain to open in 2012 a new 5-

star hotel in Beirut's city centre, the

Summerland, with the support of an incentive

package from IDAL

110 Greenfield

Kingdom Beirut Saudi Arabia 2003 Opening of a Four Seasons Hotel 88.4 Greenfield

Four Seasons Canada 2009

The hospitality chain to open its first hotel in

Lebanon in Beirut, providing its customers 230

luxury rooms

80 Greenfield

FDI and partnership projects announced in Tourism (Source ANIMA-MIPO)

Origin of the FDI projects announced in Tourism (Source ANIMA-MIPO)

0

2

4

6

8

10

12

0

200

400

600

800

1000

1200

1400

1600

1800

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Invested amounts (€m) Number of FDI projects

Number of partnerships

1110

9

4

2 13

0

1

2

3

4

5

6

7

8

9

10

11

12

UAE Kuwait Saudi

Arabia

EU USA+

Canada

Other

Gulf

Other

countries

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© EuroMed@Change 2013 11

Key Players

Government & Governmental organisation

Ministry of Tourism

The Ministry is entrusted with the following tasks:

Promoting tourism;

Regulating, coordinating, and monitoring tourism professions;

Regulating, coordinating, and monitoring private companies and associations working in the tourism

sector;

Promoting and executing tourism investment projects;

Developing archaeological and historical sites and museums for tourism purposes.

http://www.lebanon-

tourism.gov.lb/

Investment Development Authority of

Lebanon (IDAL)

IDAL is the national investment promotion agency that was established in 1994 with the aim of promoting Lebanon

as a key investment destination, and attracting, facilitating and retaining investments in the country. www.idal.com.lb

Main Professional organisations

Association of Travel And Tourist

Agents In Lebanon (ATTAL)

It’s the national body representing the travel and tourism industry. it speaks and acts for travel agents on the

Lebanese stage, as well as the regional and the international one http://www.attallb.com

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© EuroMed@Change 2013 12

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© EuroMed@Change 2013 13

National Policies

Lebanon is keen to re-develop its tourism industry

and to revitalize its pre-war image as the playground

of the Middle East. As one of the more western

countries of the Middle East, Lebanon is one of the

closest to Europe. It offers major sporting activities

from snow skiing to water skiing and from pot-holing

to gambling, together with excellent facilities for

tourists. The archaeological sites of the country are

also legendary.

The Ministry’s objective is to create sustainable

tourism by promoting tourism products that support

social harmony, cultivating market segments that

respect and conserve Lebanon’s fragile environment

and provide a sustainable source of income that

benefits the diverse segments of Lebanon’s

population. The Ministry has recently presented some

new tourism laws to the Council of Ministers for

approval. These laws will facilitate and help attract

foreign investment in the Lebanese tourism sector.

Ecotourism forms the heart of Lebanese tourism

In recent years, alternative types of tourism and

recreational activities have grown in Lebanon. One of

these types of tourism is ecotourism, or nature

tourism, which has registered a significant increase in

the number of ecotourism providers.

Ecotourism is gaining more importance in terms of

tourist choices and Lebanon has strong assets with

many natural reserves, and a fabulous mix of forest,

mountain and hospitable people. The 2005-2008

period, characterised by instability, influenced

Lebanese travellers to discover the country’s natural

resources. During the same period, the Ministry of

Tourism adopted strong direct marketing campaigns

via the internet such as Lebanon-online, and involved

specialised travel agents, all of which underlined the

importance of ecotourism. In parallel, awareness of

the importance of natural resources was reinforced by

the establishment of protected natural reserves such

as Al Shouf Cedar reserve, Horsh Ehden, Afqa, Palm

Islands, Tannourine and Tyre Beach.

The 50-day campaign

As the civil war in Syria continues to takes its toll on

the economies of neighbouring countries, Lebanon’s

tourism ministry has launched a campaign of major

discounts to revive the tourism sector and lure back

visitors from Gulf countries. The 50-day campaign

started on January 8, 2013 and includes major

discounts on airline tickets and hotels, and reductions

at shopping centers. Lebanon’s minister of tourism,

Fady Abboud, said the campaign had already proven

to be a successful approach to reviving tourism. “For

sure, this is not a new campaign. If you remember 10

years ago, we had what we call Shopping Month. We

are doing it for 50 days with a new approach, and of

course this is a marketing tool. The results aren’t bad.

People are booking with the airline companies - not

all tickets are subject to a 50% discount, but there

THE LEBANON MOUNTAIN TRAIL

The Trail was initiated in 2007 and was funded by USAID.

The project involves environmental, economic and social

aspects that showcase Lebanon as a new destination for

eco tourism. It contributes to the preservation of the

natural heritage of Lebanon’s countryside; helps discover

villages marked by scenic settings and unrivalled traditions,

and at the same time supports nature reserve

management, covering three reserves: the Al Shouf Cedar

Reserve, the Ehden Cedar Reserve, and the Tannourine

Cedar Reserve. Extending from Qbaiyat in the north to

Marjaayoun in the south, the Trail covers a 400 kilometres

trek through pathways and rural tracks, going across more

than 70 mountain villages and towns. The project

contributes towards economic opportunities in villages and

creates jobs for their inhabitants. Hikers use the services of

local guides, stay in guesthouses owned by villagers and

purchase country products. To date, several guesthouses

have been established. The impact of the project on micro-

enterprises in the places it goes through and in the country

is significant. For example, at least 12 nature tour

operators have benefited from the project helping them

expand and market their services by training their staff in

trail management and eco-guiding, by promoting their

products and services on the project website and in a

guidebook and by increasing the pool of prospective local

guides that they may hire. The trail brings together

municipalities, micro-businesses, researchers, and donor

agencies, and cooperates with a dozen local festivals.

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© EuroMed@Change 2013 14

are packages, so three or four days in a hotel with

very encouraging prices,” said Abboud. Many of

Lebanon’s shops, restaurants, and hotels

are.participating in the campaign to help attract more

tourists. Middle East Airlines, the national carrier, was

offering discounts of up to 50% on selected packages

for a 50-day period

The government-led discount campaign reflects how

the conflict in Syria has hurt tourism in Lebanon.

Visitor numbers are down about 18% from last year,

and by nearly 38% from 2010, according to research

by Byblos Bank.

Until the turmoil began next door Lebanon‘s

Mediterranean beaches, vibrant nightlife and

permissive lifestyle were pulling in tourists from Gulf

Arab states and elsewhere faster than the country

could develop the infrastructure to absorb them.

Despite the sporadic outbreaks of violence that have

plagued the country since the end of its own civil war

just over 20 years ago, Beirut was named one of the

world’s top travel destinations by the New York Times

in 2009. However, Syria’s uprising, which began in

2011, put an end to the party. “There are no

tourists,” says Paul Ariss, head of a local restaurant

owners syndicate. “I have been in the business for

the last 40 years – 2012 has been the worst,” he

says. According to him, although new restaurants

have opened, more than 40 have closed in greater

Beirut in 2012. Luxury hotel occupancy meanwhile

stalled at 56% in the first 10 months of the year

according to Ernst & Young, down from nearly 70%

in a similar period in 2010.

PLAN TO BOOST TOURISM FROM EASTERN EUROPE

The Ministry of Tourism will be working closely with

Russian and Ukrainian travel agencies to stimulate the

inflow of tourists from these countries.

The Middle East Airlines (MEA) has already agreed to

implement this strategy through increasing the number

of daily flights from Moscow to Beirut. Khaled Aridi,

Incoming Manager at Nakhal Travel, said: “The Eastern

European markets are highly active and have great

potential as tourists coming from these countries are

often from the upper social class and have a relatively

high purchasing power. They mainly stay in four and

five stars hotels, and spend in high-end stores”.

Incoming trips from Russia and Ukraine will increase as

long as the offers are attractive and the situation is

stable. Tourists from Ukraine and Russia seek mostly

beach holidays and nightlife, according to Mr. Aridi:

“This is why packages targeting these tourists must

include beach breaks and nightlife, along with visits to

natural reserves such as Jeita.” Discounted packages

(accommodation in a four-star hotel for a week) start at

$400. Visas are given upon arrival.

However, the number of tourists from these countries is

still minimal, and does not exceed 5% of the overall

tourists number. “Egypt, Dubai, Turkey, and Israel are

severe competitors when it comes to Eastern European

tourists,” Mr. Aridi said.

In line with this strategy, several tourist agencies have

been working on marketing local tourism through

regional agencies. “We have started working closely

with Turkish tourism agencies to include Beirut in their

tours as a must-visit city,” Mr. Aridi said.

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© EuroMed@Change 2013 15

Selected Investment opportunities

The tourism sector in Lebanon is far from being

saturated. With an anticipated growth over the

coming years, the divers’ profile of incoming tourists

along the various attractions spread across all the

country, Lebanon provides investors with ample

opportunities across various niches of the tourism

industry.

Three and four stars hotels

With five star hotels considerably increasing in

numbers, significant opportunities exist for investors

in the three and four stars hospitality segments,

especially in North and South Regions where religious

and cultural sites make up for the main touristic

attractions.

Medical Tourism

Lebanon is expected to be increasingly important

engine of health tourism growth in the region with

local industry estimated at EUR 1 billion and

registering an average annual rate of 30% since

2009. Lebanon is seeking to attract more foreign

patients and become a leading center for health care

tourism in the region. Investment opportunities exist

in long term stay hospitals, and also in specialized

clinics as well as in health consultancy firms which

would handle the entire trip to a patient wishing to

receive treatment for a specific illness in a foreign

country.

Business and convention centres

Business and convention centres are centres of great

importance to the Lebanese economy as they are

increasingly backing up the upsurge in business

tourism. Very few large exhibition centres exist and

they are mainly concentrated in Beirut and Mount

Lebanon. Opportunities exist in large scale as well as

in small to medium scale centres.

MEDICAL TOURISM INITIATIVE – PUBLIC PRIVATE COOPERATION TO ATTRACT TOURISTS

The Ministry of Tourism (MoT) and the Ministry of Public

Health (MoPH) have launched an initiative to promote

medical tourism in the country. Players from both the

public and private sectors will collaborate to promote

medical services as a local touristic product.

The MoT and the MoPH recently formed a national

council for medical tourism, headed by Dr. Fawzi Odaimi,

President of the Arab Hospitals Federation and Director

of Notre Dame du Liban Hospital. The council will work

closely with private stakeholders to implement the

project.

Jean Abboud, President of the Association of Travel and

Tourist Agents (ATTAL), said the local market already

has strong fundamentals for attracting medical tourism:

“We have reputable medical institutions with renowned

competent physicians in all specialties.”

Travel agencies will start including medical briefs in their

brochures, featuring renowned local hospitals, with an

emphasis on services and price range. A tourist seeking

medical treatment is always accompanied by other

people, so offering them good hotel packages and tours

would be very attractive.

The initiative mainly targets visitors from the Arab world,

thus the packages will be tailored to this clientele. MoT

statistics in 2012 had shown that Iraqi citizens had the

highest share of Arab visitors. Sources from the Embassy

of Iraq said most visiting Iraqis were seeking medical

care and therapeutic services. “Iraqis used to go to

Damascus by land for medical treatment, but the Syrian

turmoil made them shift to Lebanon as their medical

destination.”

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© EuroMed@Change 2013 16

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© EuroMed@Change 2013 17

Major Business Events

Bu

sin

ess

Even

ts

Mediterranean Tourism - MT-2013

Sector: Tourism

Number of editions: First edition

Organiser: University Goce Delchev - Stip - Faculty of Tourism and Business

Logistic - Gevgelia

Focus: Mediterranean Tourism - MT-2013 in Serbia is an international

conference which brings together academics and professionals in tourism.

Related topics: tourism, travel, entertainment, hotels, vacations, destinations,

tourism policy, SPA, cultural tourism, leisure.

Expected Participation: 1000 to 2000 attendees

Next event: 14-15 June 2013, Nis, Serbia

Information: www.euagenda.eu

Outdoor Lebanon 2013

Sector: Outdoor and sports industry

Number of editions: 2 (2012, 2013)

Organiser:

Focus: A unique event and platform for the growing outdoor and sports

industry in Lebanon. Prospects for the outdoor and sports industry in

Lebanon are highly promising and the sector is continuing to grow as interest

in a more active and healthy lifestyle increases.

2012 participation (organisers data): 20,000 visitors and hundreds of

exhibitors

Next event: 26 -30 June 2013, Beirut

Information: www.outdoorlebanon.com

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© EuroMed@Change 2013 18

This guide is a Doing business toolkit dedicated to clusters, SMEs, or entrepreneurs

interested in developing business partnerships in the tourism sector in Lebanon. It provides

an overview of the main opportunities available for the private sector, as well as concrete

and useful data to those interested to go further.

It has been prepared by Fondation Sophia Antipolis under the EuroMed@Change Project, a

Preparatory Action initiated by the European Parliament and implemented by the European

Commission (DG Enterprise and Industry).

EuroMed@Change proposes new dynamics for SME and cluster internationalisation

between Europe and 4 targeted partner countries: Morocco, Tunisia, Egypt and Lebanon. It

is managed by four organisations from across Europe (ANIMA Investment network as

Project leader, the European Business Innovation Centre Network, INNO AG and the

Fondation Sophia Antipolis as partners) and it coordinates with more than 45 associated

regional business, finance and innovation networks.