Oman tourism revenues hit $5.5bn in 2024/node/2607924/business-economy
Oman tourism revenues hit $5.5bn in 2024
Oman’s economy is forecast to grow by 2.2 percent in 2025. Shutterstock
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Updated 20 min 10 sec ago
MOHAMMED AL-KINANI
Oman tourism revenues hit $5.5bn in 2024
Tourism contribution to GDP rose to 2.7 billion rials
Government continues to adopt innovative marketing strategies
Updated 20 min 10 sec ago
MOHAMMED AL-KINANI
JEDDAH: Oman’s tourism sector contributed over 2.12 billion rials ($5.51 billion) to the Gulf country’s national economy in 2024, up from 1.75 billion rials in 2018, according to official data.
The latest figures from the National Center for Statistics and Information indicate that this increase reflects a compound annual growth rate of 3.2 percent, reinforcing the industry’s role as a key pillar in the sultanate’s economic diversification strategy.
The sector’s contribution to gross domestic product also rose to 2.7 billion rials, up from 2.3 billion rials in 2018, underscoring tourism’s expanding macroeconomic impact, according to the Oman News Agency.
European travelers significantly boosted Oman’s tourism sector in 2024, driving a 10.2 percent rise in hotel revenues during the first five months of the year, according to NCSI data released last July.
The country’s growing appeal among European tourists, alongside strong local and regional demand, reflects its broader strategy to diversify its tourism base and bolster the hospitality sector, in line with similar initiatives across Gulf Cooperation Council member states.
Minister of Heritage and Tourism Salim bin Mohammed Al-Mahrouqi said the growth in visitor arrivals, spending, and economic value reflects the result of focused and ambitious efforts by the ministry to promote Oman as a rich and diverse tourism destination, according to ONA.
He added that the latest indicators serve as a testament to the government’s economic diversification policies and effective inter-agency coordination that supports investment and accelerates project implementation.
Al-Mahrouqi also said that the ministry continues to adopt innovative marketing strategies, strengthen partnerships with the private sector, and develop offerings to enhance the overall visitor experience.
GDP growth forecast at 2.2% in 2025
The sultanate’s economy is forecast to grow by 2.2 percent in 2025, up from 1.7 percent the previous year, supported by a recovery in oil activities and steady non-oil sector expansion, according to the Ministry of Economy’s 2025 economic outlook.
Inflation is projected to rise modestly to 1.3 percent, up from 0.6 percent in 2024. Still, it will remain within the target range of Oman’s 10th five-year plan, aided by continued government subsidies and stable global commodity prices.
The ministry estimates GDP at constant prices will increase from 38.3 billion rials in 2024 to 39.2 billion rials in 2025. Oil activities are expected to rebound with 1.3 percent growth after a 3 percent contraction in 2024, while non-oil sectors are projected to grow by 2.7 percent.
Medium-term momentum is expected to continue through 2026 and 2027, bolstered by strategic projects and higher oil production, ONA reported.
Kuwait unveils major capital market reforms to boost efficiency, attract global investments
Updated 8 sec ago
MIGUEL HADCHITY
RIYADH: Kuwait has introduced a central counterparty clearing framework, upgraded brokerage standards, and streamlined settlement systems as part of a sweeping reform to modernize its capital markets and boost investor confidence.
The measures, launched as part of the second stage of Phase Three of the Market Development Program, include introducing sub-account numbering to enhance transparency, as well as upgrading IT infrastructure to support future listings of exchange-traded funds and fixed-income instruments such as bonds and sukuk, according to a press release.
Led by Kuwait’s Capital Markets Authority in coordination with Boursa Kuwait and the Central Bank of Kuwait, the reforms aim to align the country’s financial market infrastructure with global standards while reducing risk and enhancing market depth.
The Market Development Program is a strategic initiative under the country’s Vision 2035 plan, aimed at diversifying the economy, enhancing private sector participation, and modernizing key sectors such as finance, infrastructure, and technology.
Mohammad Saud Al-Osaimi, CEO of Boursa Kuwait, said: “The launch of this phase reflects our unwavering commitment to developing an advanced, efficient trading environment that meets the highest international standards.”
He added: “It is the product of close collaboration across the capital market apparatus and represents a key step in expanding the depth, transparency and resilience of Kuwait’s capital market.”
Boursa Kuwait Chairman Bader Nasser Al-Kharafi said that the collaboration has played a vital role in advancing market infrastructure and introducing sophisticated products and services that promote a more transparent and dynamic investment environment.
He added that these efforts are essential to attracting capital, generating added value for the national economy, and supporting the diversification of income sources.
The measure introduced several key reforms, including the implementation of a Central Counterparty Framework to reduce settlement risks and align clearing processes with global standards.
It also streamlined cash settlements through the KASSIP system, facilitating smoother transactions via local banks and the Central Bank of Kuwait. Additionally, brokerage firms were upgraded to “Qualified Broker” status to enhance market structure, while sub-account numbering was introduced to improve transparency under omnibus accounts.
Furthermore, IT infrastructure upgrades were made to prepare for the introduction of ETFs and fixed-income trading, including bonds and sukuk, pending necessary legislative changes.
This phase marks one of the most significant overhauls since the privatization of Boursa Kuwait, reinforcing the market’s role in driving economic growth.
“We greatly value the remarkable efforts that have driven the various phases of the Market Development Program for Kuwait’s capital market, a reflection of the power of constructive cooperation between the public and private sectors, which stands as a national model for realizing economic objectives and development ambitions rooted in innovation and professionalism,” Al-Kharafi said.
The CMA and Boursa Kuwait reaffirmed their commitment to further developing the market’s infrastructure, supporting sustainable growth, and reinforcing Kuwait’s status as a premier investment destination.
Privatized in 2019, Boursa Kuwait operates one of the GCC’s oldest exchanges, driving market modernization and emerging-market reclassification.
Majority Saudis use AI tools to make travel decisions: Survey
46% of Saudi travelers are using AI assistants to discover activities
46% prioritize safety and security when selecting destination
Updated 16 min 11 sec ago
Nirmal Narayanan
RIYADH: Saudi travelers are increasingly relying on smart technologies, with 87 percent using generative artificial intelligence tools like ChatGPT and Gemini to plan and manage their vacations, according to a survey.
In its latest report, global consumer insights provider Toluna revealed that 46 percent of Saudi travelers are using AI assistants to discover activities, while 43 percent use them for translation purposes.
These findings align with the broader trend observed in the Kingdom, where the number of people using AI tools is increasingly rising.
In June, a report prepared by Google with UK-based research agency Public First showed that 80 percent of Saudi adults use AI tools, with one in three utilizing them regularly.
This is nearly double the share of adults in the US who report using large language model-based chatbots, which stood at 52 percent according to a study by Elon University in North Carolina.
“AI is becoming a trusted travel companion, and not just among younger generations. From finding hidden gems and translating on the go, to getting activity suggestions, young Saudi travelers are making the most of AI to enhance every part of their journey,” said Georges Akkaoui, enterprise account director Middle East, Turkiye, and Africa at Toluna.
The survey said 43 percent of Saudi travelers use AI to find the best deals, while 31 percent rely on these technologies to optimize their itineraries, and 38 percent use them for restaurant suggestions.
“What is interesting is that this (use of AI) is not limited to the tech-savvy; we are seeing notable adoption even among older travelers, with over 40 percent of 45–60-year-olds also using AI for deals, activities, and translation,” said Akkaoui.
He added: “In fact, less than 15 percent of respondents are not using AI for their travels. This shows that generative AI is no longer niche, it is becoming mainstream, cross-generational, and it is already reshaping how people prepare for and experience their trips.”
These findings also underscore the progress of AI adoption in , with the technology emerging as a key component of the Kingdom’s post-oil economic development strategy.
According to the Global AI Competitiveness Index released in January, the Kingdom ranked 15th globally in research output in the sector, having produced 29,639 AI-related publications.
This ranking places it among the top contributors to global research and highlights its emerging role as a regional technology leader.
’s Public Investment Fund, in partnership with Google, launched Project Transcendence in 2024, a $100 billion undertaking, as part of its efforts to advance the growth of AI.
The initiative is set to bolster the growth of local tech startups, generate employment opportunities, and foster collaborations with global technology firms, positioning the Kingdom at the forefront of regional innovation.
Traditional sources remain strong
Despite the significant adoption of AI tools in the travel sector, traditional information sources, along with influencers and online recommendations, continue to play an important role in shaping travel decisions among Saudi travelers.
The Toluna survey said 41 percent of the Kingdom’s travelers still rely on recommendations from family members and friends.
Some 46 percent of Saudi travelers prioritize safety and security when selecting destinations, while 48 percent consider scenery as the decision-making factor.
“Despite having access to more information than they can possibly digest, and probably because of that overload, many still turn to those they trust for inspiration, with family and friends remaining an important source of travel recommendations,” said Akkaoui.
“At the same time, it is not surprising that, as with other aspects of their lives, younger travelers also rely on influencers and online recommendations for ideas and inspiration, showing how digital and personal guidance now shape the travel journey side by side,” he added.
Meanwhile, 47 percent of the respondents plan to travel internationally this summer, while 37 percent are opting for leisure trips within the Kingdom.
Only 4 percent of respondents reported having no travel plans, highlighting a strong overall appetite for summer travel.
Underscoring the growth of domestic tourism in May, ’s Tourism Minister Ahmed Al-Khateeb said the Kingdom is placing human-centered travel at the forefront of its tourism strategy, focusing on authentic cultural experiences, meaningful interactions, and community engagement.
He added that this people-first approach is designed to balance the nation’s rapid infrastructure development with heritage preservation and stronger community connections.
The National Tourism Strategy targets 150 million annual visitors by 2030, after surpassing the 100 million milestone ahead of schedule, with official data showing the Kingdom welcomed 116 million tourists in 2024, exceeding its annual target for the second consecutive year.
Turkiye, the most preferred destination
The survey found that 19 percent of Saudi travelers prefer Turkiye as their favorite destination to visit, followed by Egypt at 15 percent, the UAE at 14 percent, and the US at 10 percent.
Additionally, 8 percent of respondents are heading to Switzerland, 7 percent to the UK, France, and Thailand, while 6 percent have chosen Italy as their summer destination.
“While Turkiye remains the top destination across all age groups, younger travelers show a stronger interest in long-haul and East Asian locations. For example, Japan appeals to 14 percent of 18–28-year-olds, compared to just 3 percent of those aged 29–44, and 0 percent among travelers aged 45–60,” said the report.
In contrast, 14 percent of older travelers aged between 45 and 60 are planning a trip to the UK, a destination that sees less interest from younger respondents as a summer getaway.
In terms of spending, most international travelers are willing to invest significantly in their summer experiences.
The report also said 40 percent of Saudi travelers are planning to set aside more than SR10,000 ($2,666.39) per person on their trips, while 22 percent expect to spend between SR7,500 and SR10,000.
Some 21 percent of the respondents are ready to spend between SR5,000 and SR7,500, while 15 percent are planning to budget between SR2,500 and SR5,000.
The report further said that 40 percent of respondents regularly use eSIM cards while traveling, with 21 percent having tried it before and 20 percent expressing interest despite limited familiarity.
“The evolving travel preferences of Saudi residents reflect broader global shifts toward more connected, experience-driven tourism,” said Akkaoui.
“Whether it is the desire for natural beauty, the pursuit of cultural depth, or the appeal of cooler summer climates, today’s travelers from the Kingdom are more informed, digitally empowered, and adventurous than ever before,” he added.
GCC expats can now invest directly in Saudi main market
Move promotes openness of market internationally
Draft was open for 30 calendar days for public consultation
Updated 13 July 2025
Miguel Hadchity
RIYADH: Residents of Gulf Cooperation Council countries, including expatriates, can now directly invest in ’s main stock market for the first time, under new regulations announced by the Capital Market Authority.
The reform, unveiled by CMA Chairman Mohammed El-Kuwaiz, removes previous restrictions that limited access to swap agreements or required investors to go through licensed intermediaries. It applies to current and former residents of or other GCC states, according to an official announcement.
The initiatives align with the Kingdom’s economic diversification goals under Vision 2030, which seeks to deepen capital markets and attract global capital. By streamlining account openings and broadening access, the CMA aims to enhance liquidity, transparency, and investor confidence.
In a post on X, El-Kuwaiz said the move “promotes the openness of the market internationally, while at the same time building a long-term investment relationship with wider segments of investors around the world, within the framework of a more flexible and attractive regulatory environment.”
In a separate statement, the CMA said the updates would “enhance the attractiveness of the Saudi capital market for local and international investors, increase the level of investor protection, and strengthen the confidence of market participants.”
The amendments were approved following the CMA’s publication of the draft on Nov. 20, 2024, titled “Facilitating the Procedures for Opening and Operating Investment Accounts for Various Categories of Investors.”
The draft was open for public consultation for 30 calendar days via the Unified Electronic Platform for Consulting the Public and Government Entities, affiliated with the National Competitiveness Centre, and the CMA’s website.
The GCC investor expansion is part of a wider regulatory overhaul unveiled by the CMA last week to modernize ’s investment fund landscape.
Key reforms included expanded distribution channels, allowing investment fund units to be distributed through licensed digital platforms and fintech firms approved by the Saudi Central Bank.
Stronger governance measures have also been introduced, including new safeguards for fund manager transitions, which require CMA approval and a 60-day handover period to protect investors.
REITs listed on the parallel market now have greater flexibility, as they can invest in development projects without strict asset allocation limits, potentially enhancing returns.
The latest regulatory changes represent another strategic step to deepen liquidity, attract foreign capital, and position the Saudi Exchange as a leading money market in the region.
The battle for talent: ’s high-stakes bet on human capital
Kingdom’s rapidly expanding sectors are creating an unprecedented demand for highly skilled professionals
Updated 12 July 2025
Nour El-Shaeri
RIYADH: As accelerates its transformation under Vision 2030, a critical question has emerged: Can the Kingdom build a homegrown tech workforce strong enough to power its digital ambitions?
From artificial intelligence and smart mobility to fintech and clean energy, the Kingdom’s rapidly expanding sectors are creating an unprecedented demand for highly skilled professionals. Yet despite billions in investments and major infrastructure rollouts, supply still lags behind demand.
This challenge, however, is far from ignored.
“We are proud to take human capital development to the next level,” said Minister of Human Resources and Social Development Ahmed Al-Rajhi, during the launch of the National Skills Platform in April 2025. “Technical expertise alone is not enough. Leadership, strategic thinking, and adaptability are equally important, and skilling and reskilling for the workforce is a national priority that all stakeholders should engage in.”
The AI-powered platform connects Saudi job seekers to customized learning pathways, marking a shift toward demand-driven education and training.
Despite billions in investments and major infrastructure rollouts, supply still lags behind demand. (SPA)
A national priority
Education Minister Yousef Al-Benyan, who also chairs the executive committee of the Human Capability Development Program, emphasized the broader purpose behind the Kingdom’s reforms.
“Vision 2030 is not just a roadmap for national transformation — it is a model for how investment in people can drive sustainable progress,” Al-Benyan wrote in an April op-ed for Arab News titled “Vision 2030: Elevating human capability in a changing world.”
Citing the World Economic Forum’s Future of Jobs Report 2025, he noted that while 170 million new jobs will emerge globally by 2030, another 92 million will be displaced. He warned that 44 percent of core skills are set to change within five years, with digital and AI literacy becoming as fundamental as reading and math.
“Without these,” he wrote, “individuals are unable to participate meaningfully in today’s digital economy.”
Yousef Al-Benyan, Saudi education minister. (Supplied)
Scaling up training and inclusion
This outlook is shaping some of ’s most ambitious workforce initiatives. Among them is the Waad National Training Campaign, launched in 2023 and supported by more than 70 organizations. The program surpassed 1 million training opportunities in its first phase and now targets 3 million by the end of 2025.
Waad’s Women’s Employment Track has been particularly successful, with a 92 percent retention rate in tech roles—contributing to a record rise in female participation across the digital economy.
Waad, Al-Rajhi noted, is an investment in “the promise of human potential.”
Meanwhile, the Future Skills Training Initiative, led by the Ministry of Communications and Information Technology since 2020, has provided training to hundreds of thousands of Saudis in areas like cybersecurity, data science, and cloud computing. Supported by the Digital Skills Framework and private-sector partnerships, it has grown steadily.
One such partnership — a 2023 collaboration with IBM — aimed to train 100,000 Saudis in AI and machine learning.
Ahmed Al-Rajhi, Saudi minister of human resources and social development. (Supplied)
Talent gaps persist
Despite this progress, a 2025 report by Nucamp and the ministry highlighted a 20 percent shortfall between tech job vacancies and qualified local talent. Critical roles such as AI engineers, cloud architects, and data analysts remain in short supply.
“Demand for AI and cloud experts far exceeds supply,” said Ahmed Helmy, managing director for SAP in the Middle East, in an April interview with Asharq Al-Awsat. The result: fierce competition among employers.
To meet short-term needs, is tapping into international expertise. The Premium Residency Program, launched in 2021, allows skilled foreign professionals to live and work in the Kingdom without a local sponsor. By late 2023, more than 2,600 had taken advantage of the scheme.
In 2024, five new visa categories were introduced to attract investors, entrepreneurs, and tech specialists. These include provisions that exempt founders from Saudization quotas for their first three years—providing flexibility to scale teams while supporting local hiring in the long term.
“Such incentives allow skilled professionals to have a more stable life and make long-term investments in their careers in ,” said Raymond Khoury, partner at Arthur D. Little, in May.
Still, officials stress that international hiring is a stopgap — not a substitute.
“While attracting global talent is crucial, sustainable growth depends on balancing international expertise with local knowledge development,” said Mamdouh Al-Doubayan, MENA managing director at Globant.
To that end, foreign hires are increasingly being integrated not just as employees, but as mentors and trainers.
Startups adapt with remote models
In the private sector, startups are turning to remote hiring to bypass local talent shortages. A 2024 study by Wamda found that many Saudi companies are building distributed teams, sourcing tech talent from Egypt, Jordan, and other regional markets. This strategy shortens hiring cycles and enables around-the-clock operations.
The trend aligns with the Kingdom’s Telework Initiative, which certifies employers to offer remote roles to Saudis—especially women and those living outside major urban centers.
Competitive pressures from giga-projects
The hiring challenge became especially acute in 2023. That year, PwC’s Middle East Workforce Survey reported that 58 percent of Saudi firms struggled to fill key tech roles. A MAGNiTT report found that 65 percent of startup founders saw the shortage of senior tech talent as their top obstacle.
A concurrent survey by Flat6Labs noted that many startups were delaying product launches due to staffing shortages, losing talent to mega-projects offering 30 to 50 percent higher salaries.
“Engineers and product managers often defect to deep-pocketed giga-projects that offer salaries 30–50 percent above startup pay,” wrote venture adviser Aditya Ghosh in a November 2023 LinkedIn Pulse column.
Bridging the divide
Education leaders are working to close this gap. Khalid Al-Sabti, chairman of the Education and Training Evaluation Commission, said in a 2024 Arab News interview that is aligning its curriculum with global benchmarks.
“We must ensure our graduates meet international standards to compete globally,” he said.
This includes revising curricula, emphasizing hands-on projects, and embedding industry into the classroom through partnership programs. The Talent Enrichment Program, for example, spans 160 countries and offers global certifications to Saudi learners.
Encouragingly, ’s position in the IMD World Talent Ranking improved in 2023. Companies such as STC, Aramco Digital, and Elm are now hiring directly from local boot camps and training centers — evidence that education and industry are beginning to align.
The road ahead
Ultimately, the success of ’s tech talent strategy will be measured not just by enrollments or credentials, but by how effectively new graduates are absorbed into the workforce.
If current reforms continue at scale, the Kingdom may not only satisfy its domestic tech demand — but emerge as a regional hub for digital talent.
As Al-Benyan wrote: “By investing in people, fostering global collaboration, and redefining the future of work, is demonstrating that human capability is the ultimate driver of progress.”
Lebanon bets on Gulf tourists to rescue its collapsing economy
With the UAE and Kuwait lifting travel bans, high-end venues pin their hopes on a luxury tourism resurgence
Updated 12 July 2025
Miguel Hadchity
RIYADH: Lebanon’s tourism sector is placing its hopes on international and Gulf visitors to help steer the country through a financial crisis that has gripped the nation since 2019.
As Beirut’s clubs and restaurants increasingly operate in US dollars, the city’s tourism and nightlife have emerged as fragile yet essential pillars of the economy, largely propped up by private investment.
The ongoing financial collapse — now in its sixth year — has created an $80 billion gap in the banking sector, with debt restructuring stalled amid persistent political gridlock.
Since 2019, the Lebanese pound has lost more than 90 percent of its value, while the country’s gross domestic product has contracted by nearly 40 percent.
The 2024 Hezbollah-Israel conflict further devastated the economy, inflicting widespread damage on tourist regions. In response, the World Bank approved a $250 million loan in June as part of a broader $1 billion recovery program, estimating the total cost of the conflict at $7.2 billion, with reconstruction needs reaching $11 billion.
A defiant party amid the ruins
In early June, fireworks lit up the sky above Beirut’s iconic St. Georges Hotel during a retro-themed event hosted by the Tourism Ministry, reviving memories of Lebanon’s golden age in the 1970s — a time when Gulf tourists filled its beaches, mountain resorts, and vibrant nightlife.
Today, that nostalgia is being reimagined for a new generation of affluent travelers. With the UAE and Kuwait lifting travel bans — and possibly following — high-end venues are pinning their hopes on a luxury tourism resurgence.
But renewed tensions in the region have cast a shadow over those ambitions.
Beirut’s tourism and nightlife have emerged as fragile yet essential pillars of the economy, largely propped up by private investment. (AFP)
Lebanon’s tourism sector has seen “some cancellations in hotels, (flight) tickets, and car rentals,” Laura Lahoud, Lebanon’s tourism minister, told Arab News in an interview, acknowledging the impact of regional tensions.
“We are surely affected by the current situation in the Middle East, same as all the region. But if Lebanon remains neutral and does not take sides — as the president and prime minister are insisting — we can save the season,” Lahoud added.
Her optimism hinges on a fragile ceasefire between Iran and Israel. “Hopefully, it will go back to normal,” she said, while emphasizing that festivals and events remain untouched, except for the Beiteddine Festival, where “performers are from the US.”
The dollar hustle
While Lebanon’s currency has collapsed, poverty has tripled, and the banking sector remains frozen, a parallel economy is flourishing in Beirut’s upscale neighborhoods like Gemmayzeh and Mar Mikhael.
Security is part of the appeal. Army patrols have become more visible in tourist areas, and Hezbollah banners along the airport road have quietly given way to billboards promoting “A New Era for Lebanon.”
But the real driver is privatization. With the state largely incapacitated, private investors — mostly dealing in US dollars — are fueling a boom in luxury tourism, pouring money into beach clubs, rooftop lounges, and curated VIP experiences that operate outside the formal economy.
“The private sector has always been a main driver,” said Lahoud, defending the government’s role as a facilitator rather than a funder. “Our role is to guide, organize, and direct investment into new sectors, new regions, and new ideas.”
Laura Lahoud, Lebanon's minister of tourism. (Supplied)
Yet, some argue this model is unsustainable.
“The dollarized tourism economy has a negative impact on domestic tourism,” warned Jassem Ajaka, an economist and professor at the Lebanese University.
“Prices become high for residents, especially if pricing is applied equally to tourists and locals. This is unsustainable because the dollar is not the country’s official currency,” he explained in an interview with Arab News.
Geopolitical gambles
The stakes could not be higher. Lebanon’s agricultural and industrial sectors lie in ruins.
Once accounting for 20 percent of GDP, tourism has emerged as the fastest route toward restoring ties with Gulf countries and reviving the economy.
President Joseph Aoun has made outreach to the Gulf a top priority, traveling to , Qatar, and the UAE to present Lebanon as “open for business.”
Lahoud emphasized that rebuilding tourist confidence in Lebanon “is the main objective.”
She outlined plans to achieve this through comprehensive government reforms, coordinated airport improvements, streamlined visa processes for GCC families, shorter checkpoint delays, and the promotion of year-round tourism across all sectors.
“Before some Gulf countries removed the travel ban, Arab tourists were limited to Egyptians, Iraqis, and Jordanians,” said Jean Abboud, president of the Association of Travel and Tourist Agents in Lebanon.
“Demands from Gulf countries were growing steadily, especially from the Emirates, Kuwait, and Qatar. But due to the current conflict between Iran and Israel, everything has changed,” he told Arab News.
The fallout is immediate. “We, as tour operators nowadays, avoid including the south in our programs due to the unexpected problems,” Abboud added.
Lahoud stated that the ministry is collaborating closely with all industry groups to create unique visitor experiences in Lebanon. She added they plan to develop long-term policies and digital tools to support both city and countryside activities, and encourage vital small and medium investments across all regions.
Risky bet
“Over the past couple of years, I’ve noticed a shift toward a younger crowd — but interestingly, they’re spending more,” says Marco Khadra, ambassador at Factory People, a Beirut-based group organizing many of the country’s major music festivals.
“There’s a clear appetite for nightlife, even among younger demographics,” Khadra told Arab News.
But security concerns loom large. “Some people, including international acts, have felt Beirut isn’t safe, and that affects bookings and attendance,” Khadra admitted, adding: “Perception plays a big role in this industry.”
German electronic music record label Keinmusik performing in one of the Factory People's clubs in Beirut in 2023. (Factory People photo)
For bartenders like Lynn Abi Ghanem, who left Beirut for the Gulf, the sustainability of this boom is questionable. “Not in the long run,” she said of the shift toward Gulf tourists. “Tourists come for a short time, but it’s the locals who keep bars running all year. Without them, things feel off and won’t hold up.”
The staffing crisis is another weak link. “There are a lot of talented workers who aren’t paid what they deserve,” Abi Ghanem added. “If things don’t change, many will keep leaving.”
A mirage of recovery?
Hotels have reported occupancy rates of 80 percent ahead of the summer season, while flights are operating at near capacity with expatriates and Gulf tourists. Yet Lebanon’s recovery remains precarious.
“Even though tourism’s contribution to the gross domestic product increased after the crisis to about 30 percent, this was due to the economic contraction,” explained Ajaka.
“We cannot say the sector has recovered because recovery depends on political stability and investment inflows.”
For now, the party continues, sustained by Gulf investment and the relentless drive of Beirut’s nightlife entrepreneurs.
But as Ajjaka conceded: “The biggest enemy of tourism is any security obstacle.” And in a country where crisis is the only constant, the stakes have never been higher.