The economy is doing surprisingly well right now given the internal and international factors Lebanon is facing.
The most obvious external factor is the trade war Syria is currently imposing on us.
The most obvious internal (or, perhaps, external, as well), the bombs that are supposedly scaring tourists away.
Even though many khalijis aren't showing up, the influx of Lebanese living abroad returning this summer is massive. Furnished apartments in non-traditional tourist locations are booked: Ashrafieh, Jounieh, Jbeil. It's the usual places that are suffering: Broumanna, Bhamdoun, Aley, the Phoenicia.
However, it's not the bombs that are keeping many of the tourists from visiting. It's the instability in Saudi Arabia.
Saudi princes own a number of properties in Beirut's downtown and in Aley. They have indicated that they will arrive in September, but not before then.
This was surprising to many hotel and furnished apartment managers because the Saudis had previously made reservations. Saad had done a good job convincing the Saudi princes and notables to show up in Lebanon this summer. He guaranteed them that they would not be the targets of attacks, even if more bombs went off. The Saudis were not deterred by the internal situation.
But then, about a month and a half ago, many of those reservations began being cancelled. First, it was the head of the household who cancelled his stay. But then the entire family reservation was cancelled. Given that many Saudi royals and notables rent entire floors of hotels, this was a significant hit.
The Movenpick is currently packed with many upper middle class individuals from the Gulf, but the Phoenicia is operating at less than 30% occupancy. Most of the clients at the major non-resort hotels are businessmen - many more than in years past, not tourists. It shows that business is good, but tourism is way down.
So, why all the cancellations?
Allegedly, it's because of the succession to Malik Fahd.
The gossip I heard from one prince who is not really in the loop - but more in the Saudi loop than me - is that King Fahd is on life support. The plug can be pulled at any time.
Judging by Beirut hotel reservations, it seems like that time might be in mid-August.
Thursday, July 21, 2005
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5 comments:
I know you are trying to make a point, but aren't we stretching a bit here LP?
I don't think that Franz Ferdinand and the other guy (???) cancelling their Jbeil shows had anything to do with ailing Malik Fahd.
Interesting that today's press in the USA (Washington Post, NYTimes, LA Times) all report that Prince Bandar will soon leave his post as Saudi Ambassador to Washington (after 22 years!!), in part because of the unsettled dynastic situation back home. It looks like something is indeed afoot in the Desert Kingdom...with possible repercussions all across the region!
LP, makes sense! how interesting. i will be very curious to see what happens over there when king fahd officially dies. i can imagine lots of people are panicked about not being around when the plug is pulled and getting screwed over by rivals.
mad-- fyi: franz ferdinand cancelled their entire eastern med tour (including turkey, greece, and leb) because of promotional commitments in the US... it wasn't about lebanon (or the security situation) at all-- and in fact, the byblos show is the one they've specifically promised to make up next year.
I didn't know that Franz Ferdinand will make up the concert.
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