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ECONOMIC CRISIS

Tourist syndicate head says many establishments have closed amid the crisis

Tourist syndicate head says many establishments have closed amid the crisis

A photo from May 2021 shows patrons at a bar in Beirut's Gemmayzeh district. (Credit: Marc Fayad/OLJ)

BEIRUT — The head of both the Federation of Tourism Syndicates and the hotel owners’ syndicate, Pierre Achkar, said Friday that the economic crisis Lebanon is suffering from, which has led to massive electricity and water shortages "has prompted many institutions to close.”

Here’s what we know:

   • In a statement Achkar said, "The almost uninterrupted power cuts force tourist institutions to pay very high operating costs, due to the use of private generators and the increase in the price of fuel oil.” Fuel prices, since fuel imports are for the most part no longer subsidized by the government, have risen sharply in recent months as the dollar hit record levels on the parallel market in early January, although it has since decreased following an injection of dollars to the market by the central bank.

   • In his statement Achkar also criticized the fact that "tourist institutions are struggling to supply themselves with water during winter" adding that "this crisis has pushed many of them to close, particularly in Mount Lebanon, although not all have publicly announced this decision.” The water supply has indeed recently been interrupted in several regions, notably in Beirut and Mount Lebanon, due to shortages of electricity in the hydraulic stations.

   • Achkar also claimed that the appreciation of the Lebanese pound against the dollar on the parallel market which has been taking place following BDL’s decision to inject dollars in the market “has not reduced operating costs in tourist institutions.” He stressed that these institutions’ revenues are in Lebanese lira and expenses in dollars.

   • The head of the syndicate also explained that the products purchased by restaurants and hotels are still priced at the exchange rate of LL33,000 against the dollar, which was the dollar rate against the dollars before it fell back to around LL23,000.

   • “As long as the political situation in Lebanon is unstable, the economic, financial, tourist, social and vital conditions will also remain unstable, or even deteriorate,” Achkar added.

   • The tourism sector has been hit hard by the socio-economic crisis and the fallout from successive lockdowns due to COVID 19, with an absence of any plan from the Lebanese authorities to aid the businesses that have been damaged as a result. 

BEIRUT — The head of both the Federation of Tourism Syndicates and the hotel owners’ syndicate, Pierre Achkar, said Friday that the economic crisis Lebanon is suffering from, which has led to massive electricity and water shortages "has prompted many institutions to close.”Here’s what we know:   • In a statement Achkar said, "The almost uninterrupted power cuts force tourist...