The hotel sector in Lebanon has experienced tough times over the past two years. With the COVID-19 pandemic and the economic and living crisis devastating the Lebanese people, the sector's revenues have plummeted significantly, putting many hotels at risk of closure or already in that stage. However, the current summer season showed promise on several fronts. How has this impacted the sector?
"The season was good, but it did not meet expectations," says Pierre Ashkar, head of the Hotel Owners Association. He attributes this to the fact that "those who stayed in hotels were only expatriates and tourists, not resident Lebanese," noting that "the middle class in Lebanon has nearly disintegrated, and consequently, those who belonged to this class did not resort to hotels or internal tourism."
In an interview with MTV, he highlights a major issue faced by hotel owners: evaporating revenues, which are "burned" due to the purchase of diesel, as state electricity is completely cut off. Additionally, hotel owners are struggling with water shortages, forcing them to secure and purchase water using their own revenues.
Ashkar asserts that we are facing a dark tunnel, adding: "We covered part of the losses incurred during the stagnation period last winter this summer." However, he points out that "we will witness many closures of hotels that have been open year-round for decades during the upcoming autumn, winter, and spring seasons, especially in areas outside Beirut."
