Executive Magazine

Promoting tourism starts at home

by Executive Editors July 30, 2015

written by Executive Editors

No cultural tourism enthusiast would feel that a trip to Beijing is complete without visiting the Forbidden City, or to Athens without at least passing by the Acropolis, and the same thing can be said for Paris and the Louvre Museum. While cultural tourism is not the only form of tourism, it is the one that brings in the largest number of visitors to a country. Lebanon, which also has culturally significant antiquities has failed to cultivate these sites as touristic destinations that would match the aforementioned attractions.

Global examples such as Petra in Jordan or the Mayan Temples in Mexico show that developing touristic destinations around culturally significant landmarks can be done and would bring in benefits such as an increased number of visitors to the country, as well as increased economic benefits including investment opportunities in businesses complementary to tourism and employment.

Yet, Lebanon has largely missed this opportunity with only Byblos coming close to being a tourist destination, thanks to private sector investment in the city and the goodwill of its municipality. Other areas with cultural antiquities, such as the temples of Baalbeck or the hippodrome and seaside ruins in Tyre are ignored and left to languish with the little domestic tourism they can bring in (see article page 50).

So what can be done to change that and benefit from our country’s potential for cultural tourism? The basic and necessary first step would be a change of attitude by all stakeholders in the tourism industry, starting with the Ministry of Tourism itself, moving away from complaining about their limitations towards a more constructive attitude.

The Ministry of Tourism, charged with promoting and marketing these cultural sites, should research good examples of touristic destinations centered around cultural antiquities and develop a national plan that can be applied within the Lebanese context. Instead, the Ministry of Tourism has focused its strategy for the next five years on rural tourism. While it is a viable form of tourism for sure, it does not make a lot of sense to prioritize promotion of largely unknown locales over one of Lebanon’s most valuable touristic assets — its antiquities and rich cultural history.

Meanwhile, while it benefits the municipalities where cultural ruins are located to cultivate a viable city that will attract tourism — not only do they collect half of the total entrance charges, but they also collect taxes from building permits — it is often left up to a mayor’s personal initiative to back tourism projects through facilitating their development in terms of permits and such.

A good municipality can either make or break a touristic destination as there are no institutional practices or national plans to enforce and encourage positive action. Here again, a change of attitude from fatalistic to “can do” would be more beneficial to the city itself. Instead of municipalities complaining about a lack of budget, they could use whatever opportunities or investments they have at hand to attract tourists and more investors, such as in the case of Byblos.

Tourism is touted as being one of the pillars of the Lebanese economy; if this is the case then a more serious and well studied approach should be taken for its development and promotion. One where all stakeholders know their role and energetically follow a national strategy based on specific research and data.

July 30, 2015 0 comments

A port policy for all

by Executive Editors July 29, 2015

written by Executive Editors

Lebanon’s seafaring culture stretches back to at least the time of the Phoenicians. Our maritime trade has, historically, connected East to West, spreading commerce and culture across the Mediterranean Sea. It was towards the end of their centuries-long rule that the Ottomans dug out what today is Beirut’s port and, less than a century later, in the 1950s, the Lebanese government built Tripoli’s port. Today our harbors are vital to the economy and a strategy is needed to strengthen our connectivity to and positioning among increasingly competitive global markets.

Ships sailing in and out of our ports carrying goods and freight bring us, for example, the latest electronic gadgets that are designed on one side of the planet, manufactured on the other and shipped across vast oceans to our stores and malls. Lowering the cost of maritime trade is and should remain a priority. Over the past decade, freight lines across the world have increased their container capacity, allowing a level of standardization that has transformed the efficiency and speed of maritime trade. At the Beirut Port, this standardization has at least made imports more efficient — products are cheaper allowing the Lebanese to, as the port’s management argues, maintain their purchasing habits. The global goods trade will grow by 4 percent next year, says the World Trade Organization, with a growing share of those goods shipped as containerized cargo. Lebanon’s ports must keep up with this trend but building container capacity must also be coordinated.

For our manufacturers, now that land transit across Syria is no longer viable, the ports provide vital access to foreign markets, particularly those in the Gulf. Once the civil war subsides in Syria, our ports could very well be indispensable in the reconstruction that will follow. Syria’s plans to expand its ports at Tartus and Latakia are on hold for now, while the links of those ports to Syria’s national infrastructure lay in a state of disconnectivity. Tripoli’s port might, to a lesser extent, also serve Iraq’s reconstruction needs once transit routes reopen.

Much work, however, remains to be done if we are to exploit these future opportunities. Infrastructurally we are weak. The reality is that the port of Beirut is practically isolated from any transportation infrastructure that would make it capable of serving Damascus or Baghdad. The lack of a rail link and the bumper to bumper traffic beginning at the port’s roadside entrance will only get worse without a plan for infrastructure investment. Lebanon needs two modern ports at the very least. Tripoli’s port may be in the better position geographically to transport goods to our easterly neighbors, but there is neither a national plan to coordinate the ports vis-à-vis each other nor a plan to build the transportation infrastructure needed for this kind of capacity.

If we want our ports to continue to serve the needs of our growing economy over the long term, and of neighboring economies in the medium term, we need a national strategy. This strategy must focus on port integration within the international logistics value chain as well as the interconnectivity of Lebanon’s ports with each other. A national strategy should also organize the way our ports are managed — whether it is full privatization, public-private partnerships, or nationalization — to maximize sustainable economic returns for the nation as a whole. The Beirut Port’s management consists of a temporary body whose mandate was never meant as a permanent solution. A port management that is accountable to the government with clear lines of reporting is a necessary first step in articulating such a national strategy, putting in place processes that contribute to decisionmaking at the ports, like major expansion plans.

A national strategy for our ports must be conceived through a coordinated discussion within the framework of the state. It cannot be left to the private sector, a temporary committee or to any other personal interest to decide. It must be a national debate.

July 29, 2015 0 comments

Museums & Galleries

Artscoops: a beirut based online art platform

by Sara Ghorra July 29, 2015

written by Sara Ghorra

“Tell me what you collect, tell me how you collect, and I will tell you who you are.” – Jean Willy Mestach (1926-2014).

As the late artist and collector of African art Mestach aptly insinuates, assessing someone’s private art collection is a subtle yet indisputably revealing glimpse into their mind and soul. Yet, although what one collects will always be unique to each individual, how one collects is slowly yet surely following the trend of almost everything else: going online.

By Fadi Yazigi

Indeed, the art world has undergone great changes in the last few years with the rise of digitized art commerce, as hundreds of online art selling platforms have been created worldwide in response to a growing demand. Whether in terms of genre, media or style of the artwork or in terms of the artist’s notoriety, the range offered by the international e-commerce websites is eclectic and expansive. Today, one can effortlessly explore a considerable chunk of the art market with the hope of finding and buying art that suits their taste, needs and budget.

But even though the online marketplaces for contemporary art are numerous, very rare are those centered on art coming from the Arab world. And that is why Artscoops came into existence. The Beirut based online art platform designed by mother and daughter, May and Raya Mamarbachi, launched less than a year ago and is the first one to focus solely on art from the Middle East and North Africa.

May & Raya

Artscoops gives one the opportunity to browse, discover and acquire contemporary pieces – mostly drawings, paintings, photographs and sculptures – created by both renowned and emerging artists from the region (prices for individual pieces start from just $250 and can go up to $100,000 and more). It partners with artists, cultural institutions and various commercial galleries, both in Lebanon and abroad, in an attempt to showcase and promote the best of Middle Eastern art.

In addition to its ongoing informative listing of artworks and their respective artists, Artscoops also curates online exhibitions, which feature harmoniously grouped artworks that correspond to a specific theme. Some of the galleries they collaborate with in Lebanon include Mark Hachem Gallery, Agial, Art Factum, Galerie Janine Rubeiz and ArtLab, among others.

Once the desired artwork is selected, one can make secure online payments via PayPal, one of the world’s leading payment networks for e-commerce.

Another interesting area in Artscoops’s range of work is the online auction, during which it invites potential buyers by e-mail to participate and engage in a continuous bidding process that happens over a span of 10 to 14 days, receiving its peak bids in the final 48 hours. It has previously organized an auction in association with Paddle8, the specialized international online auction house.

By Joumana Medlej

The platform’s principal aim is to expose MENA artists to the world and to allow international collectors to get acquainted with their creations and be enticed enough to add some of them to their collection.But beyond just being a bridge between buyers and sellers, Artscoops offers precious advisory services that benefit not only the collectors but also those who have just started considering crafting their private collection. As a matter of fact, more and more young men and women in Lebanon are contemplating buying art. But while their initial instinct might be finding the pieces that would use to embellish their newly bought apartments and houses, Artscoops’ Co-Founder Raya Mamarbachi suggests leading them on a further step.

Beyond just discovering the artworks that embody their personal aesthetic choices and hint at their individual sensibilities, the novice buyer has the opportunity to make a more thoughtful selection.

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By Fadi Yazigi

Indeed, in her publication “Evaluating Art as an Alternative Investment Asset”, published in 2009 in The Capco Institute Journal of Financial Transformation (authored by Raya Mamarbachi, Marc Day and Giampiero Favato), Raya Mamarbachi examines the changing role of art and its newfound appreciation as a very attractive object of investment. “Returns are just as attractive if not better in art than the stock market” states the paper, an alluring idea that is developed throughout with conclusions that shed new light on art collection.

Therefore, with the aim of educating and guiding, Artscoops offers the services of its team of art consultants, among whom are Raya Mamarbachi, May Bendki Mamarbachi and Delphine Leccas. Their expertise can help any beginner to start their artistic journey, by introducing them to the type of artwork that echoes their preferred style, as well as guiding them on important matters of evaluation.

Norms are changing in all fields, and art is no exception. Although art pieces such as those auctioned at Sotheby’s, Christie’s and Philips can be worth hundreds of thousands of dollars if not millions, they comprise only a small part of the overall art market. The rest can be relatively affordable. And since it has now become possible to explore so much art in so little time, no matter one’s location, it’s just about the right time for budding art collectors to start the quest for the pieces that thrill them.

By Hassan Darsi

July 29, 2015 0 comments

Film

Issam Merheb’s social criticism through ‘Velfies’

by Sara Ghorra July 29, 2015

written by Sara Ghorra

Issam (‘SiMi’) Merheb is Lebanon’s latest viral sensation. His 60 second ‘Velfies’ (Video-Selfies), which he began filming from his car, have taken the social media scene by storm. In the videos, Issam shares his personal observations, sarcastically reflecting upon high society’s latest personality disorder symptoms.

Each of his videos is a comical example of the loss of personal identity that plagues our society. Although Issam used to express some of his thoughts through humorous and cynical Facebook statuses (with respect to his cherished freedom of self-expression), it was only after he changed his method of delivery that these pertinent reflections started disseminating beyond his close circle of friends. Issam’s popularity is now growing fast thanks to his casual, funny and concise videos which touch upon topics others wouldn’t dare discuss. Yet his revolt against our society’s fake attitudes and its adoption of foreign trends is understandable to anyone who knows where he comes from.

Alain Merheb

Issam is the son of the late beloved Alain Merheb, ‘King of Al-Howara’ (Howara is a type of satirical song that talks about social, economic and political issues) and the dancer and choreographer Nay Lahoud Merheb. He grew up in a home filled with love and art, in an atmosphere that inspired individuality and authenticity. Issam’s father, who was one of the nation’s greatest treasures in the performing arts scene, was praised as one of the few people who endeavored to preserve our traditional artistic forms. He made it his lifelong mission to teach the world about Lebanese music and dance, and his genuine pride in belonging to his nation touched many, particularly his family.

Issam Merheb in ‘Tarik El Shams’

So it comes as no surprise that Issam (also a natural born performer, who showed his acting skills in his uncle Romeo Lahoud’s play ‘Tarik El Shams’ in the summer of 2014 at the Casino du Liban), shares his father’s passion for Lebanese traditions. He is spicing it up with his own individually crafted satire and, thanks to his ‘Velfies’, his message is spreading fast.

In his videos, he reproaches the ‘trendiest’ chunk of our society both for their tendency to show off and their lack of modesty (‘Cedars & Business Lounges’ Velfie); for their sudden applause for causes they should already be supporting, prompted by an event that took place on another continent and which won’t even affect them (‘El Pride Bel Love’ Velfie); and for any type of false emulating of the latest worldwide trends while getting further away from their Lebanese belonging (‘Quinoa/Kale’ Velfie).

The topics he is tackling might seem inconsequential when taken individually, but his broader message is far from petty. Although he sarcastically brands himself as a “#HaterForLife his second hashtag implores “#SaveLebanon”. And this genuine plea, although packaged in a spontaneous and mocking manner, has more to it than pointless sarcasm.

SiMi

Unsurprisingly, not everyone is a fan of Issam, especially those who do not enjoy the art of self-criticism. Yet few can remain unmoved to the obvious frustration which underlines his desire for a more candid society. Shouldn’t we be grateful for the likes of Issam, one of the few who cares enough to publicly expose the signs of our society’s loss of individual identity? Someone confidently satirizing the attitudes of those who supposedly make up the ‘crème de la crème’ of society, but who are actually uprooting themselves in a mannered attempt to seem more ‘open’?

“#SaveLebanon”, he preaches ironically. However, if we each started making an effort to detect and work on those small complexities that are distorting our sense of belonging to the colorful mosaic of our nation, we may eventually be able to collectively shape a healthier and truer society and perhaps, ultimately, ‘save Lebanon’.

‘Tarik El Shams’

July 29, 2015 0 comments

Culinary Art New Food Concepts

The Beirut Street Food Festival, An Event With A Ripple Effect

by Sara Ghorra July 27, 2015

written by Sara Ghorra

Some people’s relationship with food is more of a passionate love affair. They take sensual pleasure in preparing it, and may even feel a hint of guilt when indulging in it. To them, food is pleasure, cooking is art, and the perfect dish is akin to a little piece of heaven.

Although not everybody has such strong feelings about culinary art, nobody can deny the fact that food is often much more than just a means to satisfy one’s hunger. Food brings people together, and great food brings people even closer.

Anyone who has watched “Babette’s Feast”(1987) will remember the superb final scene, depicting Babette’s sumptuous French dinner being served to a small congregation of unusually austere people. Her guests, who are used to plain meals typical of their chaste existence, are presented with a feast which is lavish beyond their wildest dreams.

In that final scene we witness a fascinating transformation of energy among the invitees who initially find it almost sinful to comment on the earthly pleasures of their meal but whose inhibitions vanish as they discover exquisite flavors they had never before dreamed of. The feast elevates them to a physical and spiritual delight that mystically affects the dynamics of the diners and changes the atmosphere among them entirely.

There is no denying that the act of sharing a flavorsome meal with others can have a real effect on those partaking in it. But what if such an exchange could take place outside the delimited space of a dining room in a house, or a table at a restaurant? For instance in a public area, where more people could participate in the tasting … what effect could it have then?

The answer is provided by Youmna Mteiny & Zeina Halawi – an energetic duo who are forging the trend of ‘street food’, one event at a time!

Youmna and Zeina merged their respective know-how in design and hospitality during March of this year, and kick started their endeavor of introducing new flavors to our scene through the “Beirut Street Food Festival (BSFF)”.

That event, which took place last May at a public parking lot in Monot (Beirut), gathered 30 chefs and food lovers who presented both traditional and personally-crafted recipes ones to more than 10,000 participants. There were no company labels to be seen and no references to the professionals amongst the chefs, only an attractive name relating to the dish being served at each stand. This intentional simplification made it more exciting for both the cooks and the tasters to discover new plates without any preconceptions.

However, this successful event is only part of Youmna & Zeina’s bigger vision. Indeed, they have the goal of becoming trendsetters in Lebanon’s hospitality industry, weaving a solid community from the culinary sphere and elevating our food-loving nation to a higher level while turning this yearly festival into a celebration recognized by the entire MENA region.

This might seem an ambitious goal considering their young age, but their palpable energy suggests otherwise. The pair, who completed their Master’s Degrees in ‘Culinary Management & Innovation’ at the esteemed ‘Institut Paul Bocuse’ in France, had each taken a culinary course at the institute before deciding to embark on the full program, a year apart from one another. For Zeina, it was another personal reward, in addition to the ‘International Etiquette and Protocol’ course which she had taken at the ‘Institut Villa Pierrefeu’. For Youmna, it was her graduation gift!

Their paths eventually crossed, leading them to partner up and build a culinary art platform in the shape of the non-profit organization ‘BSFF’. And even though this initiative is far from being the bread and butter of the two ‘Culinary Concept Creators’, they are giving it equal importance. What makes them stand out from the crowd is their approach, which draws simultaneously on Youmna’s industrial design background as well as Zeina’s hospitality management experience in some of the best luxury hotels in Asia.

The Beirut Street Food Festival was both the trigger for their mission, and what set off its momentum. In order to keep that momentum alive, they have created “Discover”.

“Discover” is a series of experiments they have designed and started carrying out at the environmentally-friendly hangout spots The Junkyard (since June) and The Garden State (since July). These bi-weekly tastings are an invitation to uncover not only innovative dishes and flavors but also different chefs (whether professionals, semi-professionals or amateurs). Indeed, at each of these tastings, 2-4 new culinary artists are introduced and present the tasters with personalized dishes according to that evening’s theme. Each event proves more surprising than the last as the chefs’ creativity blooms in an attempt to challenge the traditional.

But some of the most interesting things about Youmna & Zeina’s endeavors are the broader consequences of their work, which are already extending beyond their events. Thanks to the ladies’ BSFF model and their method of implementation, a great number of the featured cooks have found themselves facing exciting new opportunities. Moreover, some of the ‘chefs-at-heart’ who had never considered turning their hobby into a full time job are finally taking the plunge.

Any witness to the culinary synergies they are creating would agree that Youmna & Zeina’s BSFF could become a game changer. By revealing so many diverse culinary talents to players in the hospitality industry and potential investors, they are encouraging not only the fusion of new tastes but also the growth of a new trend in the restaurant business.

If people had the chance to visit a restaurant because they know the specialties of its chef, wouldn’t it be satisfying for them to know that their bill would neither incorporate the cost of the premium location, the architecture, the interior decoration nor the other elements that aren’t at the core of their outing? Real food lovers do not mind a minimalistic dining experience in a boutique restaurant consisting of a gourmet meal, a clean setting and good company (even if the latter is just a glass of fine wine!). Their aim is to satisfy their palate, without necessarily hurting their wallets. Indeed, we could point to some existing venues that are all about the food they serve (the likes of Motto restaurant, Jai Kitchen, Onno, etc.), which attest to the popularity and success of this concept.

Food is art. And just as an art collector would excitedly visit a gallery to discover what the latest addition to their collection could be, key players in the hospitality field ought to show up at the BSFF events to uncover preferred artists. As for the rest of the tasters, join the movement – even if only to enjoy the food!

July 27, 2015 0 comments

Theatre

‘One Night on Broadway’ By Roy Khoury

by Sara Ghorra July 25, 2015

written by Sara Ghorra

One of the delights no theater enthusiast would ever miss on a trip to London or New York is a West End or Broadway musical. This performance, which mingles the worlds of acting, singing and dancing, can be a truly enchanting spectacle, one which we have never had the chance to experience on our home soil … until now!

For the very first time in Lebanon and the Middle East we have a chance to get a taste of the drama in the production “One Night on Broadway”. This show, which gathers 25 artists and 25 members of the Lebanese Philharmonic Orchestra on stage, has already enthralled crowds on two fully booked nights at Casino du Liban back in May, and will be one of the most anticipated events at the Zouk Mikael International Festival this month.

Yet the most exciting news of all is that this outstanding production was the creation of one of our own local talents, 26-year-old Roy Khoury, who graduated with honors from the ‘Broadway Musical Theater’ program at the New York Film Academy back in 2012.

Roy Khoury

“One night on Broadway” is Roy’s personalized musical, an artfully designed compilation of excerpts from twenty of Broadway’s most famous shows. The musical numbers include Footloose’s “Mama Says”’, Chicago’s “All That Jazz”, Sister Act’s “Raise Your Voice”, The Addams Family’s “When You’re an Addams”, Les Miserables’ “I Dreamed a Dream”, Hairspray’s “You Can’t Stop the Beat” as well as extracts from the enchanting Phantom Of The Opera, among others.

No two scenes are alike, with each stage setting distinguished by its unique décor, special costumes, and flamboyant troupe of actors, singers and dancers. Even better, no scene lasts more than five minutes, and the transitions from one to the next are as smooth as they are funny. Roy, the choreographer, director and musical director of the whole show wanted his musical to be a spectacular ‘tasting’ in which each member of the audience could find satisfaction.

The high quality of the show is a reflection of the rich experience Khoury gained during his studies, internships (at the ‘Broadway Dance Center’ & ‘Steps on Broadway’) as well as his participation in some Broadway musical performances. He took part in productions of ‘Sister Act’ (backstage as hair & make-up artist), ‘The Lion King’ (on stage as dancer and puppeteer) and ‘Wicked’ (as backing actor & singer) in New York.

Khoury has always been a fan of performance arts and, as a youngster, used to take singing, piano and violin lessons with private coaches, as well as dancing classes in studios. His passion knew no boundaries, until he was injured in an accident that put him in a coma for two months in the middle of 12th grade.

After waking up from his coma, he decided to stop all other artistic activities and concentrated on filmmaking studies at the Académie Libanaise Des Beaux-Arts (ALBA). After two years, he stumbled upon the ‘Broadway Musical Theater’ program and applied on a whim. He received a callback within two days of submitting his video audition, and was invited to audition live in New York.

The two years he spent at the New York Film Academy were a period of highly intensive training. While there, he studied music theory, musical theater and theatrical scene, acquired the major acting techniques such as ‘The Meisner technique’, ‘Stanislavski’s system’ and ‘Uta Hagen’s technique’, exercised his vocals to adapt to several music genres and performed all types of dances (Classical, Tap, Jazz, Ballet, Ballroom, etc.).

Yet when he came back in 2012, he was disappointed to discover there was no place in Lebanon for somebody with his training. Broadway musicals were still foreign to the Middle East, and a university teaching position without a PhD was out of the question at any reputable university.

That is when he decided to establish his own dancing school – STEPS. For more than a year he experimented and innovated with his students, many of whom were interested in honing their skills and adapting them to the requirements of a musical. And that is how, just before the end of 2014, Khoury decided to create his first musical – ‘One Night On Broadway’ – featuring his troupe of acting, dancing and singing students!

Success is often difficult to come by, but when it happens, it is truly a reason for celebration. Khoury is one of many talented young Lebanese, yet he is also one of the few who had the fortune of being around people who took risks on him simply out of faith in his abilities. But their risk paid off as the show not only sold out and thrilled audiences keen to discover a new form of theater, but also raised the bar in our theater scene. Local talent and creativity is yearning to unveil itself, and we hope that “One Night on Broadway” will be the first in a long line of future Lebanese musicals.

July 25, 2015 0 comments

Uncategorized

Exploration on hold

by Mona Sukkarieh July 24, 2015

written by Mona Sukkarieh

This article was written in May for the June edition of Executive Magazine.

The third well drilled in Cyprus’ Exclusive Economic Zone (EEZ) failed to reveal commercially exploitable natural gas reserves. Italian multinational Eni’s Saipem 1000 drillship drilled to a depth of 5,485 meters in Amathusa, in Block 9, without yielding positive results.

This is the second failed attempt by the Eni-KOGAS consortium in Cyprus’ EEZ. The consortium is hoping to get similar treatment to that given to Total, and submitted a request to extend its exploration license. As it stands today, the license expires in February 2016, with the consortium negotiating with Nicosia for a two year extension. Eni reportedly plans to use this period to form a more precise picture of the previously unexplored area and reevaluate the geological model and data collected in both drills.

With Total and Eni’s failure to locate commercially exploitable quantities of natural gas, all five blocks awarded in the second licensing round to big fanfare in 2013 yielded disappointing results. Of course, this does not rule out positive results in the future with the possible extension of the exploration program — granted for Total, and hoped for by Eni.

Exploratory drilling on hold

If Eni’s failure in Onasagoras and Amathusa, both in Block 9, is in itself a setback for Cyprus (although not entirely unexpected given the success rate for drilling at such depths), it does not mark the end of bad news for Nicosia. The Eni-KOGAS consortium, which holds exploration rights in Blocks 2, 3 and 9, is legally bound to drill at least four wells in its current exploration program. But, after two unsuccessful wells and over $300 million spent, the program is shrouded in doubt. No exploratory drilling is expected this year in Cyprus (the Saipem 1000 drillship is scheduled to undergo maintenance lasting around five months) and could possibly be delayed for much longer. Indeed, with current oil prices, the Italian company has suffered significant losses in the last quarter of 2014, leading to cutbacks and the decision to sell up to €8 billion ($8.9 billion) of assets. Its priorities seem to lie a bit further south, after pledging to invest $5 billion in Egypt. Similarly, Noble has suspended further drilling plans in Block 12 due to the slashing of its exploration budget.

Resumption of negotiations

The disruption of offshore exploration, which is not expected to resume before 2016 or even 2017, in addition to the expiration of Turkey’s NAVTEX (navigational telex warning) and the withdrawal of its seismic research vessel Barbaros Hayreddin Paşa from Cyprus’ EEZ, opened a window of opportunity to resume negotiations between Greek and Turkish Cypriots. The election of President Mustafa Akıncı — seen as a moderate — in Northern Cyprus on April 26, brought hope, for the first time in years, that the Cyprus problem can actually be settled.

Contacts resumed on May 15. Greek Cypriots would have headed to the negotiation table with a stronger hand had they made a new discovery, which would have made them much more at ease in monetizing their gas resources. Instead, developing the ± 4 tcf Aphrodite gas field is in itself a challenge in the current context. This seems to have brought the Turkish option back to the table as one of the means to monetize Cypriot gas, even faster than negotiators.

Development of Aphrodite

With the break in exploratory drilling, Aphrodite remains the only Cypriot gas discovery to date and will remain so in the short to medium term. Noble Energy is expected to submit its development plan in the next few weeks.

The plan is likely to involve a floating production, storage and offloading (FPSO) unit producing 800 mmcf of gas per day, and subsea pipelines to possible destinations, which in addition to Cyprus may include Egypt. Already, there are difficulties. It appears Noble Energy and Delek, the owners of Aphrodite, are hesitant when it comes to contributing to infrastructure work beyond the development of the field, which would ultimately leave it to the buyers and interested parties to transport the gas to its final destination.

Noble is also obligated to find export markets to proceed with the development of Aphrodite, since the local market is so small (requiring less than 35 billion cubic feet of gas per year) that it does not, on its own, justify development costs. Egypt, with its idle LNG plants and vast local market, emerges as the most logical option. The Egyptian Natural Gas Holding Company (EGAS) is negotiating to import approximately 700 million cubic feet of gas per day from Aphrodite. Gas will be transported via a pipeline that would be completed “within two and a half to three years,” according to a statement by EGAS chairman Khaled Abdel Badie to Daily News Egypt.

But Egypt is setting 2018 as a target year to become self sufficient in gas, and plans to stop imports by 2020. In addition, the Egyptian LNG option also comes with its own sets of challenges, although they can be managed in a way so as to alleviate their impact and make the Egypt option more viable. First, the combined capacity of the two LNG plants in Egypt is 12.2 mtpa and the operators are in discussions with other potential providers, including the Leviathan and Tamar partnerships, BP and BG (for supplies from Egyptian gas fields). This means not all of these suppliers can be accommodated. It is not exclusively a matter of ‘first come, first served’, as other elements such as geopolitics and prices are also taken into account, but timing is very important. Second, there is a risk Cypriot LNG might not be competitive in European markets where LNG is now delivered at around $7 per mmBtu (or even Asian markets, with similar prices). Taking into consideration the price of gas at the well, and adding the costs of transport to Egypt, liquefaction, transportation to Europe, regasification and profits, the end-user price could end up at $12 per mmBtu. Granted, LNG prices regularly fluctuate and cannot be predicted years in advance, but the LNG glut whose impact we are beginning to feel is expected to continue with additional supplies hitting the markets in the next few years, and an expected return to grace for nuclear energy in Asia. Barring a major catastrophe, these developments may indicate that prices are unlikely to return to their all time high in the foreseeable future.

There might still be another option, namely marine transport of compressed natural gas, allowing exports to Europe, although it doesn’t seem to generate much enthusiasm given it is still untested (the first ever carrier currently being designed for Indonesia’s PLN is expected to become operational in May 2016).

Changing market conditions, inflated expectations, a subjective assessment of geopolitics and political risks, unreasonable bets and so on might explain why Cyprus had to abandon grandiose ambitions and make the most out of what it already discovered — in itself significant — all while, rightfully, bracing for more. Unfortunately, these are symptoms we are all too familiar with in Lebanon.

July 24, 2015 0 comments

Comment

Combating a global scourge

by Nabil Watfa July 24, 2015

written by Nabil Watfa

Child labor afflicts over 160 million children worldwide, according to the International Labor Organization (ILO) — making it one of the most pressing human rights issues globally. Fortunately, the response of the international community to the phenomenon has been immense. The 96 year old ILO first addressed the problem with the adoption of the Minimum Age (Industry) Convention (No. 5) in 1919. This was followed by the adoption of the Minimum Age Convention (No. 138) in 1973; the Declaration on Fundamental Principles and Rights at Work in 1998; and the Worst Forms of Child Labor Convention (No. 182) in 1999. In 1989, the United Nations also adopted the Convention on the Rights of the Child as a global standard based on four main principles: nondiscrimination; the best interests of the child; the right to life, survival and development; and respect for the views of the child. Yet there is still much work to do.

What is child labor?

Children engage in different types of work. If the work includes activities such as helping parents or assisting a family business, without interfering with the child’s schooling or undermining the child’s development, it should not be classified as child labor. On the contrary, engagement in such activities will contribute to the child’s development and the welfare of the family, and will provide the child with the skills and experience that are required to become a productive member of society.

However, if the work deprives children of their childhood, potential or right to dignity, or if it is harmful to their health, then it is deemed child labor. Examples of such work include activities which specifically interfere with school attendance, lead to dropping out of school and involve arduous, heavy work with long working hours. The severity and nature of child labor varies depending on the child’s age, type of work and the circumstances under which it is carried out. If child labor jeopardizes the physical, mental or social wellbeing of the child, it is referred to as ‘hazardous work.’ The priority for the international community is to eliminate the worst forms of child labor.

The worst forms of child labor (WFCL), as addressed by the ILO Convention on the subject, refer to:

• All forms of slavery or practices similar to slavery, such as the sale and trafficking of children, debt bondage, serfdom, and forced and compulsory recruitment of children for use in armed conflict;

• The use, procuring or offering of a child for prostitution, for the production of pornography or for pornographic performances;

• The use, procuring or offering of a child for illicit activities, in particular for the production and trafficking of drugs and;

• Work which, by its nature or the circumstances in which it is carried out, is likely to harm the health, safety or morals of children.

Globally, the response to child labor started with the ratification of the 1999 ILO Convention (No. 182) by 179 member states. This means that, at present, more than three out of four children live in countries that have ratified it. Efforts have concentrated on a number of actions, including prevention, protection, legislation, recovery and social integration of millions of children. The response was directed at different types of child labor, including hazardous work in areas such as agriculture, small scale mining, child domestic labor, child trafficking, commercial sexual exploitation, forced and bonded labor, and the engagement of children in armed conflict and illicit activities.

Worldwide trends show positive signs in tackling the problem. ILO statistics indicate that the number of child laborers (5–17 years old) worldwide dropped from 246 million in 2000, to 218 million in 2008 (an 11 percent decline); and to 168 million in 2012 (a 35 percent decline). Meanwhile, the number of children involved in hazardous labor dropped from 171 million in 2000 to 85 million in 2012 (a 50 percent decline). The statistics also show that Asia and the Pacific still maintains the largest number of child laborers (78 million, or 9.3 percent of the child population); Sub-Saharan Africa has the highest incidence of child labor (59 million, or 21 percent of the child population); Latin America and the Caribbean has 13 million or 8.8 percent of the child population; and the Middle East and North Africa is home to 9.2 million child laborers or 8.4 percent of the child population.

Sector wise, the largest number of child laborers work in the agricultural sector (98 million, or 58 percent of the world’s child laborer population). The service sector (wholesale and retail trade; restaurants and hotels; transport, storage and communications; finance, real estate and business services; and community as well as social personal services) exploits 54 million; while industry (mining, quarrying, manufacturing, construction and public utilities) exploits 12 million.

[pullquote]Prior to March 2011, the child labor population in Lebanon was estimated at 100,000[/pullquote]

The situation in Lebanon

Among the four different categories of the WFCL listed above, hazardous child labor is more predominant in Lebanon. Prior to March 2011, which marks the start of the Syrian crisis, the child labor population in Lebanon was estimated at 100,000. Earlier surveys conducted in selected southern villages and in Mount Lebanon and Beirut provinces identified child labor in agriculture and construction, two of the most hazardous sectors, and sweat shops, as well as the street children in the urban areas of Beirut, Bourj Hammoud, Antelias and Jounieh. The assessments showed that 16 percent of the labor force in small and medium size enterprises (SMEs) were children aged 9–18, 5 percent of whom were girls. Child laborers are exposed to a number of hazards, including chemicals, heavy mechanical machinery and psychosocial stress. The effects on the health of working children are not only acute, but may be chronic, manifesting in long term poisoning, cancer and musculoskeletal and mental disorders. Field experience has also revealed that a growing number of girls were victims of sexual exploitation, including abuse in the workplace. Boys and girls were also engaged in the use and distribution of illicit drugs. Earlier studies conducted in the South Lebanon province revealed that children were sexually active at an early age, with limited knowledge about prevention of HIV and other sexually transmitted infections. The phenomenon is exacerbated by the continued massive influx of Syrian refugee children, who created significant human rights and economic challenges for host communities, and for the refugee legal framework in Lebanon.

In 2013, a study was sponsored by the ILO, UNICEF, Save the Children International and the Ministry of Labor (MOL) for the purpose of assessing the number and conditions of children living and working on the streets. The study, entitled “Children living and working on the streets in Lebanon: Profile and magnitude,” was conducted in 18 districts across Lebanon, covering a total of 1,510 street based children (SBC). The results identified the causes for the high numbers of SBC as social exclusion, vulnerability of households, the influx of Syrian refugees into Lebanon, organized crime and exploitation of children. SBC were more prominent in begging (43 percent) and street peddling (37 percent), and more prevalent in urban areas. The study covered a wide range of aspects that are too detailed to include here.

Fortunately, Lebanon reaffirmed its commitment to combat child labor through the ratification of the relevant international conventions and the issuance in 2012 of ministerial Decree 8987, which prohibits the employment of persons under the age of 18 in hazardous jobs. In November 2013, Lebanon pledged to eliminate the WFCL by 2016. This will depend on the proper application of the national action plan. However, given the problem’s complexity, the MOL’s efforts need to be supported in a coordinated fashion with other government ministries such as social affairs, public health, education and higher education, the interior, municipalities, as well as UN agencies.

What needs to happen

Action aimed at the elimination of child labor must address a number of target groups and partners, especially the direct beneficiaries — namely the vulnerable children — and the indirect beneficiaries, including parents, SMEs, schools and community leaders. This is not to mention direct recipients, including the MOL’s Child Labor Unit (CLU) and labor inspectors, the National Steering Committee (NSC), social work NGOs, employers and workers organizations, and all governmental agencies involved in combating child labor. Other collaborating partners include governors, law enforcement officers, municipalities and UN organizations.

At the field level, an updated situation analysis is needed to identify gaps in child labor relevant programs and policies in the different provinces across Lebanon. A strong national steering committee needs to be involved in the collection, analysis and dissemination of data on child labor, in order to support the planning of policies and services. The development and implementation of a Child Labor Monitoring System has also been effective in reducing the impact of risk factors and in promoting positive and protective services. Public awareness campaigns to promote the understanding of child labor are also essential as supporting services. The same goes for the provision of training and technical advisory services for the direct recipients, indirect beneficiaries and the collaborating partners referred to above.

[pullquote]Given the direct correlation between incidences of school dropout and child labor, resources must be directed at efforts to keep all children in school[/pullquote]

Given the direct correlation between incidences of school dropout and child labor, resources must be directed at efforts to keep all children in school, especially those between the ages of 6 and 15. This necessitates a number of interventions, including the provision of livelihood services such as an assessment of obstacles that prevent children from attending school, and the provision of financial support and other incentives to help households offset income currently being earned by children. This must be accompanied by the implementation of safe schools and smart student programs to improve school enrollment, retention and destigmatization of working children.

Such school and student focused programs would need to include at least four main elements. First, teachers should be trained to assess school readiness for children in primary and secondary education. Through this, teachers will become qualified to diagnose the particular educational requirements of the students, identify criteria for remedial classes, develop a diagnostic tool for students’ enrollment in remedial classes, design and deliver remedial competency based curricula and design training tools for monitoring student progress.

Second, teachers should also be trained to conduct remedial classes targeting students who have sporadic school participation or are at risk of dropping out. This will qualify teachers to provide incentives such as back to school kits and lunch programs in order to encourage attendance and retention in schools; conduct awareness raising activities at national and local levels, beginning with a knowledge, attitude and practice study to assess youth refugee perception towards displacement and identify psychological status; design and modify existing tools to monitor students’ progress; and aim to alleviate poverty by promoting income generating activities for families with children.

Third, safe child and youth friendly schools must be created to promote social cohesion and accommodate the learning needs of all children. This should include anti-bullying campaigns, tutoring, cultural activities, team sports and group therapy. Additionally, training in, and the implementation of, the National Strategy on Violence Against Children will be needed.

Finally, targeted interventions should be implemented through surveys and site inspections designed to identify and withdraw children who are under 14 from forced labor environments and conduct rapid assessments on the impact to the family; identify and withdraw children who are above 14 from the WFCL and conduct rapid assessments on the impact to the family; and improve school enrollment, performance and retention through mentoring, tutoring and financial incentives. Preventing at-risk children from becoming victims of forced labor by helping families through coordination with mayors, labor unions and development service centers must also be employed. If such coordinated action is taken, Lebanon will be able to do its part to combat the global scourge of child labor — and provide the next generation with a far brighter future.

July 24, 2015 0 comments

Economics & Policy

Church and state

by Jeremy Arbid July 23, 2015

written by Jeremy Arbid

Earlier this year, Executive started an investigation into an expansion project at the Port of Beirut (POB) aimed at enhancing capabilities and readying Lebanon’s primary port for future competition. The plan was to create a multi-purpose terminal — at a cost of $129 million — building a new quay to accommodate larger seafaring vessels and filling the Basin 4 to create a backyard for general cargo and container storage.

The project’s key measure of filling in Basin 4 caused a huge stir as soon as contractors commenced work. The first line of opposition was as vocal as it was obvious: truckers, fearing for their livelihoods, blocked POB access. Their union argued that filling Basin 4 would eliminate trucking jobs for general cargo — materials ranging from steel girders, baled and boxed goods to cars.

However, it quickly emerged that the truckers’ grievances were barely the tip of a much wider disagreement over Lebanon’s maritime transport. Executive contacted a wide range of stakeholders — some of whom made themselves very hard to reach. Others were initially slow to respond but very forthcoming once we discovered that the epicenter of the debate was located in a very unlikely place: Bkirki — seat of the Maronite Catholic Patriarchate.

Clerical intermediation at the hub of Lebanese Christianity led to the formation of a committee of Christian political parties focused on the economic need for a national maritime transport strategy. The Bkirki-led committee is looking beyond the plight of the truckers: they point to the port as a strategic public asset whose current expansion planning is, in the committee members’ assessment, neither institutionally sound nor properly aligned with the development needs of the nation’s economy.

“If this [plan] was part of a whole new look for 2050 and the next 35 years, and were this port to play a very important role in the rebuilding of Syria [then] okay, I would take off my hat and say let’s do it. But I read the feasibility study. It’s all bullshit,” says Fadi Abboud, industrialist, former minister of tourism and participant in the Bkirki-led committee. Ghassan Hasbani, chief economic adviser to the Lebanese Forces and also a participant in the Bkirki-led committee, says that port management is only concerned with how to maximize its revenues without taking into account what impact the expansion project may hold for the economy at large. “They [the port management] are doing what they believe is best for the port itself and the revenues of the port. They are not taking into account the impact on the economy, on society and on the social and public responsibility of the Port of Beirut, which is very important,” Hasbani says.

It is all part of a larger power struggle for control of the management of the port — with the truckers’ union seemingly a pawn towards this end. Those in opposition decry the illegal status of the port’s board of directors — they charge that it is a temporary committee. Indeed, operations were handed over from a private company in 1990 to this committee under the expectation that a law would be passed to formalize the structure of Lebanon’s ports. It never materialized. Leveraging a stay on the project, the Bkirki-led committee is demanding the government articulate a national strategy to organize the ports. As Executive goes to print, the POB expansion project remains on hold indefinitely in the face of significant opposition, and additional stakeholders are entering the fray.

A trucking sideshow

In December 2014 the truckers’ union began protesting the expansion plan, arguing it would negatively impact their livelihoods while also contesting the legality of the project. The truckers, in fear for their jobs, ran to Bkirki for support — the trucks’ owners are majority Christian, says Minister of Culture Raymond Araiji, whose Marada party participates in the Bkirki-led committee. The Church promised to look into the matter, with Bishop Boulos Sayyah enlisting Christian political parties — Free Patriotic Movement, Kataeb, Marada and the Lebanese Forces — to the cause.

The pressure worked. In January, the responsible parliamentary committee issued a statement calling for work on the expansion project to stop and asking the council of ministers to intervene. However, the commotion raised by the union has quickly spiraled into a debate over the port’s management as a strategic asset of the state, leaving the concerns of the union as a secondary issue.

Executive’s interview requests with truckers’ union leader Naim Sawaya remain unanswered, but interviews with participants of the Bkirki-led committee confirm that the truckers do fear their livelihoods are at stake. To them, any restructuring of the port’s strategy might jeopardize their employment in a similar fashion to that of the stevedores more than a decade ago. The installation of the blue and red gantry cranes at the port rendered obsolete the basic manual labor of unloading and loading cargo from ships. The port’s director, Hassan Kraytem, in an April interview told Executive that maximizing efficiency in the port’s operations was the goal. The introduction of the gantry cranes and a focus on containerization at the port has allowed gains in efficiency, Kraytem acknowledges, but has marked a shift in employment structure. “True. Work in the port has changed a lot and the number of employees has come down, by choice and by force,” he admits. A new multi-purpose terminal would allow the unloading and loading of ships carrying containers or general cargo around the clock every day of the year, he says, whereas the quays of Basin 4 now service ships for only eight hours per day.

[pullquote]“[the truckers] moved because they were the only ones who could exercise pressure”[/pullquote]

The truckers’ fear, Araiji says, is based on the assumption that the filling of the Basin 4 will kill their business — particularly general cargo activity. They depend on freight coming into the Beirut Port and believe that “if you fill [Basin 4], this cargo wouldn’t be able to discharge, and the trucks, in principle owned by Christians, will be impacted because this kind of cargo will be redirected to Tripoli. In Tripoli, trucks owned by Christians cannot enter the [port],” Araiji says. The truckers have been working within the current framework: specific companies and drivers have been servicing the Beirut Port not under formal contracts but through general arrangements, with trucking companies having a non competitive environment secure to themselves. It is “a monopoly in fact, a de facto monopoly,” Araiji says.

Kraytem told Executive in the April interview that the closure of Basin 4 and the construction of a multi-purpose terminal in its place would not negatively impact general cargo. He does acknowledge that the port’s overall growth rates will continue to focus on container traffic, adding that transshipment at the port now accounts for one third of its traffic, with the rest being local. Kraytem says the expansion will increase container traffic, and that general cargo will also be received at the planned multi purpose terminal. He says they’ll have much more work, and that truckers can transport containers as much as they drive general cargo.

Differing motives

The Lebanese Forces’ Hasbani confirms the plight of the truckers as a triggering event, but not the crux of the issue. Abboud corroborates this notion, saying, “Yes, [the truckers] moved because they were the only ones who could exercise pressure — if not for them, what could we do?” The Bkirki-led committee is backing the union but for strategic reasons only, and opinions within the committee range from mere disagreement with the truckers to railing against them as a bloated monopoly.

Araiji indicated that the truckers held a monopoly over general cargo at the port. Abboud reiterates this notion. He tells Executive that, “In their mind, [filling] Basin 4 means the beginning of not allowing conventional ships [carrying general cargo]. They are trying to fight for their rights and the monopoly they have. They [mobilized] simply because they are under the impression that maybe general cargo will move to Tripoli.”

Abboud offers a harsher judgment on the truckers. He says their monopolies at the ports hinder the country’s manufacturers. Their transit of freight between the port and factories is extremely slow, cumbersome and expensive “because it’s another fucking monopoly. You cannot buy your own truck and send it to the port. Everybody who tried failed. In principle you can, but you will never be able to get it [through],” he says.

The truckers, however, are convinced of their cause, says Araiji, who is one of four ministers participating in the Bkirki-led committee — the others being Minister of Economy Alain Hakim, Minister of Education Elias Bou Saab, and Minister of Energy and Water Arthur Nazarian. Abboud, a Free Patriotic Movement supporter and informal advisor to Bishop Sayyah revealed to Executive that “[the truckers] had their own reasons. Their own reasons have nothing to do with the economy of the country. We are with them in strategy and tactics — for the strategy we think they are right.”

Port management

The truckers astutely grasp that they would be among the first affected by a shift in port strategy.

Those in the Bkirki-led committee realized, based on the movement by the truckers, that changes at the POB were not in their economic interest. What began as a labor issue is now the cause célèbre on the political front, and the economic stakeholders to be affected tend to be on the Christian side — not in a religious dimension, but a communal one in support of industrialists in the greater Metn.

The Bkirki-led committee is questioning the legality of the port’s management as a main component of their takeover strategy, specifically challenging the port’s ability to undertake any expansion project without government approval. For its part, the port’s management justifies its plans by pointing to a previous cabinet decree as all the approval it needs. The Bkirki-led committee challenges this interpretation. They argue that since the port’s managing team is a temporary one, it cannot undertake expansions without new approval from the Council of Ministers.

The legal challenge stretches deeper. The Bkirki-led committee is raising questions over the port’s legitimacy to spend the tariffs it collects. “It’s neither a public company nor a private company, nor a department within the government, with no clear reporting lines to anyone except a dotted line to the minister. It has its own bank account at Banque du Liban. It does not fall under the jurisdiction of the audit council, so it does not get audited by the government at all,” Hasbani challenges.

Abboud adds that, since before his time as minister of tourism, he has been stonewalled on the tax issue. He says the role of the Church throughout all of this has provided a useful platform to push the issue. “We went to Bkirki because there is no president,” Abboud tells Executive. “To be totally honest with you, [this was] the only way I could think of to turn this around, because I have been defeated for the last 15 years, before I was even a minister in the Cabinet. Usually Bkirki, when we ask for their interference, say they will not interfere in such a way — they will simply call the president: ‘Please Mr. President, put this whole issue in a Cabinet meeting.’”

But Abboud is adamant that the tariffs the port collects are illegal taxes. “You cannot collect taxes from the people and not pay them to the budget — this money goes to private banks, and [Kraytem] spends the money as he wishes. This is what has been happening for the last 25 years, which is absolutely incredible. I sent [a letter] to the Shura Council asking them how a temporary committee can collect taxes from the people and not pay it to the budget? This question is now more than three years old and has never been answered.”

National strategy needed

The Bkirki-led committee is pushing further. They want to integrate Lebanon’s ports into a national strategy, and their objection to this specific expansion project — as one not in the public interest — has, in their opinion, highlighted such a need. They also say the project does not consider the impact to the nation’s economy but only serves the port’s desire to increase its revenue. Predictably Kraytem, the port’s manager, disagrees. He says that Lebanon would be losing economically and strategically, and that it would negatively impact Lebanese consumers if the expansion project were not implemented.

[pullquote]“We asked if there is a national plan for the ports. There was none”[/pullquote]

Where exactly the port lays in economic importance to the nation is not up for debate, but how it intersects with other sectors of the economy, they say, must be prioritized. “We asked if there is a national plan for the ports. There was none. We asked if there is a national strategy for maritime transport. There was none. We asked for the position of the government. There was none,” Hasbani tells Executive. The Bkirki-led committee is of the opinion that Lebanon’s ports, since they are public assets vital to the nation’s economy, should be incorporated into a national strategy integrating maritime transport with land infrastructure. “This is what we’re demanding,” Hasbani continues, “first of all a strategy; second an independent regulator; third a clear structure of how the ports will be managed — public-private partnership, privatization, nationalization — we have to have a decision by the government and it has to be a full national discussion, not just one minister or one group.”

If and when the government might commence this debate is still unclear — its silence on the whole issue is deafening. The ministry responsible for the port has been publicly absent from the discussion, seemingly content to allow the port’s future to be debated outside the framework of the state. Executive’s interview requests to the Minister of Public Works Ghazi Zaiter, as well as separate requests to its director general for land and maritime transport, Abdul-Hafiz Kayssi, remain unanswered. Abboud also says that Prime Minister Tammam Salam has so far declined to put the expansion issue on the agenda of the Council of Ministers. He tells Executive that, “I spent two and a half hours with him [in March]: ‘You are the head of this Cabinet, you are the prime minister, how can you say you don’t want to look at this file?’”

Executive has also learned that an additional stakeholder has requested the project be put on hold — the Lebanese Army. The army is reportedly anticipating delivery of several new frigates, and the port’s First Basin is said to be too shallow to moor those warships. Filling Basin 4, the Army is concerned, might also limit the access of UN and foreign military ships — possibly jeopardizing international treaties.

Clearly, the Port of Beirut is a strategic asset — it is Lebanon’s maritime transport hub, the point of entry for a great majority of Lebanon’s consumables and raw materials, as well as the site of export for most of the goods produced here, with major implications for the nation’s economy. A national strategy organizing Lebanon’s ports is needed, the Bkirki-led committee correctly points out, to address infrastructure challenges that are limiting shipping efficiency, as well as to determine the roles of Lebanon’s ports and how they will be managed.

July 23, 2015 0 comments

Special Report Tourism 2015

Alternative lodging

by Nabila Rahhal July 23, 2015

written by Nabila Rahhal

Interest in authentic and traditional experiences has been growing over the past several years in Lebanon, as exemplified by the rise in the number of restaurants in traditionally designed homes or even by the number of people going on hikes in rural and rarely visited areas of the country.

This trend can also be seen in the growing number of guesthouses — defined as a private home offering accommodation, and usually breakfast, to paying guests — or boutique hotels opening their doors, especially in rural areas of Lebanon. When Executive first covered guesthouses two years ago, there were less than 10 such lodgings across the country. Today however, there are approximately 40 guesthouses according to Kanj Hamade, senior consultant at Lebanese Industry Value Chain Development Program (LIVCD). The program works on rural capacity development across three main sectors or value chains: agricultural, agro-industry and tourism, in which LIVCD offers training and technical support to guesthouse operators.

A sign of their current significance to tourism is that such lodgings are now officially recognized by the Ministry of Tourism and require a license for operation.

What’s in a guesthouse?

According to Layal Boustany of L’Hôte Libanais, a private company that promotes alternative tourism in Lebanon mainly through rural guesthouses, visitors opt for these forms of lodgings when they want to immerse themselves in the culture and traditions of the region they are in. “Previously, tourists came to Lebanon and went to touristic sites but did not really get in touch with the people or the community. Today with the guesthouses, they are basically living with locals so they get direct contact with the cuisine, the traditions and the mentality of the people. Even in boutique hotels, because they are small, there is a much closer and personal relationship between the owner and the guests,” Boustany explains.

Local or foreign clientele

Boustany says that when L’Hôte Libanais was founded by Orphée Haddad in 2005, the idea of opening one’s private house to strangers was unheard of among Lebanese, and that his main role was raising awareness and encouraging locals to utilize their homes in that manner.

Dar Alma

Today, there are eight guesthouses and one boutique hotel in L’Hôte Libanais’ network, which promotes and markets these guesthouses on its website, social media platforms and at events, along with allowing guests to book through the website in return for a percentage of the booking fee. According to Boustany, for the first few years, their clients were largely foreigners already familiar with the idea of guesthouses and either residing in Lebanon or here on vacation. “Slowly, and especially in the past three years, we had more people from Beirut who wanted to take a weekend getaway in these guesthouses or boutique hotels, instead of going to a typical mass tourism hotel,” Boustany says.

LIVCD’s Hamade says that local tourism is the driving force behind guesthouse capacity in rural areas for the time being. “We cannot promise guesthouse operators that there will be thousands of tourists suddenly coming to Lebanon this summer. What we can do is support them in first meeting the local demand, which is plentiful, and then preparing themselves and their venues, in terms of quality, for when the tourists from the Gulf region return,” Hamade says. He adds that when these tourists do come back to Lebanon, it will be enough for only 5 percent of them to visit rural areas and spend a night in a guesthouse in order to significantly impact the area’s economy.

Indeed many guesthouses or boutique hotels are finding that they have more demand than they can handle. Manager on duty in Dar Alma, a new boutique hotel in Tyre, says that their nine rooms are almost fully booked on weekends until the end of September and that they are at least half full during weekdays for the same period.

Collette Kahil, owner of Beit al Batroun, a guesthouse in Batroun, says bookings from both foreigners and Lebanese have been steadily on the rise since she opened two years ago, and that she has recently added two rooms to her house, making a total of five, to meet this increased demand.

Beit al Batroun

Show me the money

Hamade explains that rural tourism in general, and guesthouses or boutique hotels specifically, present an opportunity to revitalize the regions that host them. “These areas need that sector as it empowers women and youth in the area — they are usually the ones that work in this soft value industry — strengthens social cohesion when Lebanese visit lesser known areas of their country and combats poverty within that region, aside from securing the resilience of the tourism sector through diversifying offers,” Hamade explains.

Still, Boustany says L’Hôte Libanais encourages guesthouse owners to view this operation as an alternative revenue stream, one which can eventually be put back into developing and maintaining the guesthouse itself, rather than as a full time job which, according to her, would put too much emphasis on commercializing the guesthouse and affect the experience’s authenticity.

The makings of a guesthouse

Slowly, owners of traditional Lebanese houses are considering the idea of transforming their homes into guesthouses. Boustany says that while at first they had to approach people and convince them to do so, today they are getting more and more phone calls from people who ask them to come and assess whether their homes meet L’Hôte Libanais’ criteria for guesthouses. The requirements include that the house’s architecture is traditionally Lebanese, the breakfast served is authentic and reflective of the culture and most importantly, the host is friendly and open to the guesthouse experience.

Beit al Batroun

“Many people call us but when they understand the concept, they back out because they are not ready for such an idea. The concept of a boutique hotel is more easily accepted by the owner and the guest at times,” Boustany says.

While guesthouses and boutique hotels are certainly on the rise in Lebanon, with two new guesthouses — one in Keserwan and the other in Furn el Chebbak — joining L’Hôte Libanais’ network this summer, Boustany feels there is more work to be done in spreading awareness of alternative tourism.

“The challenge is that, even with all our efforts, the idea of the guesthouse is still uncommon and sometimes people are disappointed or their expectations are not met. In the end, you are in somebody’s house and sometimes there are clashes. But we know it is working because it is growing. The guesthouses in our network are fully booked and both the hosts and guests are happy,” Boustany concludes.

July 23, 2015 0 comments