Tour operators report a 50% improvement in bookings over 2003; the streets of Bhamdoun are rocking; guides are having the best summer in three years and their busy season increased to six months…. But Lebanon wants more tourism. EXECUTIVE details how the country can get more by taking a look at tourism niches and sub-niches that have development potential or even untapped capacities.

Healing the body

Health-related travel is an international tourism market niche to which local experts attribute enormous inbound potential. A broad coalition from the public and private sectors has begun efforts to unleash this potential by cultivating a sub-specialization of health tourism, called medical tourism, and the first results are coming in.

In June, Lebanon’s National Council for Health Tourism (NCHT) counted 40 to 50 patient arrivals here from regional countries, marking the beginning of what is hoped to become a huge activity for Lebanese hospitals, doctors and hospitality providers. “Every year, Arabs spend over $3 billion on health treatment. We have a stock of excellent doctors who studied in 58 countries. That is why we can claim to be an alternative source to developed countries in provision of health services. We have accreditation of a standard that no other Arab country comes even close to,” boasted Khalil Malaeb, general manager of K&M International Health Tourism.

His company received a commission by the NCHT – an entity formed under participation of five government ministries and five private sector syndicates – to organize and market Lebanon’s health tourism project worldwide. Work on the project started one-and-a-half years ago with measures to set up the infrastructure of local networks and international agreements, Malaeb said, and once the system is rolling, local providers should expect clients to come “by the thousands.”

The elements that make Lebanon an attractive destination for medical tourism in the region and possibly beyond are a superb price-cost ratio offered by clinics and practitioners here and 140 years of excellence in the field, Malaeb claimed. In developing the potential NCHT does not rely on approaching individual patients but tries to establish a systemic supply through agreements with governments and insurance companies in partner countries and through alliances between hospitals.

According to Malaeb, first operational accords were established earlier this year with Kuwait and Dubai, and government-to-government agreements with three countries in the Gulf and North Africa are currently in the process of being completed.

By NCHT expectations, most patients coming to Lebanon, often accompanied by family members, would stay anywhere between several days and a few weeks to undergo operations for a range of internal ailments of heart, liver and other organs. However, first arrivals already also included patients seeking longer treatment for cancer and degenerative diseases.

A second very significant client group presenting strong revenue potential for local surgeons are persons signing up for plastic surgery. With costs starting around $1,500 and the duration of the procedure taking a maximum of one week, including all medical follow-up, plastic surgery has become a preoccupation for vastly growing numbers of women and men from around the region, and Lebanon has already gained a reputation as a center for such treatment.

If the formula for medical tourism becomes as successful as expected and hospitals fill up with patients whose treatment costs are paid (upfront) by their foreign healthcare providers, it would constitute a healthy inflow of revenue – for which no projections are available – and also lead to a follow-up creation of rehabilitation clinics, convalescence homes, and purpose-built accommodations for family members in the vicinity of major hospitals. For the moment, the network employs existing hotel facilities to serve clients, offering numerous options on cost and class of treatment and hotel stay.

The beach

In core qualities, the new prime-grade Lebanese beaches should have no trouble competing with many of the top destinations. Whether at an undeveloped beach in the south, or at any of the leading new resorts in Rmeileh, Jiyeh, Damour, and Byblos, one sees a different and distinct beauty confirming the country’s age-old spell as a land of splendor.

Cleanliness has been a problem on Lebanon’s coast, both due to absence of wastewater treatment facilities and because of prevalent picnickers and beach revelers who don’t remove their own trash. But with the emergence of carefully managed new seaside fun spots over the past four years, private sector operators have shaped stretches of noticeably clean resort environments. As the beach resort business is expanding, it hopefully will bring continued impetus in the creation of environmentally responsible recreation sites and push municipalities and national authorities towards more effective action in remedying the deplorable state of handling liquid and solid wastes.

Competition pressures among resorts seem to have thus far stood against the establishment of a dedicated association or syndicate and defining of joint standards by operators. But one only needs to compare the diverse features of, for instance, Oceana in Damour and the Edde Sands Resort in Byblos to be immediately convinced that the offerings of classy places complement one another, and the more originality and variety in style they provide, the better.

The establishment of sophisticated and affordable beach resorts that are able to comfortably accommodate capacity crowds is still a relatively young development. Thus, the new leisure attractions operate under challenges to achieve returns on their investments ranging from $1.5 to $10 million, satisfy their mainstay local customers and raise the image of a Lebanese beach vacation among European holidaymakers, who account for the vast majority of international tourists on Mediterranean beaches.

All is not eco

In the worldwide growth sector of eco tourism, Lebanon recently claimed to have many chances, reaching from participation in reforestation and environmental projects to adventure travel and agritourism. However, the sector is not really in gear. “I am afraid to have to say that the sector is very weak. We don’t have a profile of eco tourists coming to Lebanon from abroad,” said Pascal Abdallah, general manager of Cyclamen, one of seven local companies specialized in the sector.

What these companies currently can produce, accounts for far below 5% of the entire tourism turnover in Lebanon, he told EXECUTIVE, and companies cannot offer eco-tourism in the real sense, which relies on experiencing nature non-intrusively. “We do not yet have a national policy on eco-tourism. We are restrained to providing responsible nature tourism,” he said.

What are promoted mostly in the still very small sub-sector are sports and adventure tourism trips. Many of the recent providers of these programs are enterprises evolved from informal beginnings in hiking clubs and youth organizations. The issue of eco tourism is viewed as very important at the ministry of tourism. This notwithstanding, no formal department for eco tourism has been instituted and the issue of nurturing eco tourism is handled by members of the ministry “as a hobby.”

Agritourism projects have been proven viable by academic research but are still small or even merely conceptual, with wine tourism as the specialization seen as having the best potential to become a niche attraction for tourists. Lebanon did hope to claim a modest spot in this lucrative sector (Australia wine tourism brings in $500 million to rural Australia annually, with a near 100% increase in the number of tourists since 1991). However, this initiative has stuttered in recent years. In 2001 UVL put together a formal itinerary for wine tasting tours called Le Route du Vin, but the post 9/11 drought of Western tourists virtually stymied the plan at birth.

Globally, the typical wine tourist falls into three categories: aged 40 to 60, childless couples or those with a higher than average education and income. This is a growing demographic group and one that would appreciate Lebanon’s other cultural attractions. Apart from the vacationing expatriates, the wine growers had counted on these enlightened 40-somethings, mainly from the UK and Germany, to make the journey to the Bekaa wineries.

Currently, only Kefraya, Ksara (which receives 40,000 visitors a year) Massaya, Clos St. Thomas and Clos De Qana offer genuine hospitality services. Cave Koroum is putting the finishing touches to a not insignificant wine resort in the village of Kefraya. The winery is arguably the biggest in the Middle East and has a restaurant, tasting room and hotel to match.

Massaya, a younger but forward thinking winery, has introduced weekend buffet lunches and last year held blues and jazz concerts in the vineyards. This summer, the winery expects to receive nearly 10,000 visitors and has added more concert dates. Others have taken the lead: Clos St Thomas in Qab Elias holds regular lunches and star watching evenings.

Gaming, shopping, and festivals

Lebanon is always a good place to leave money, and there’s nowhere easier to do that than the Casino du Liban. From 1959 until deep into the civil war, it achieved a legendary career as place where the rich, famous and reckless gambled their fortunes. Show designers from Las Vegas are said to have come to Maamaltain in the casino’s heydays to pick up entertainment ideas.

Today, the casino again is a fixture of the region’s entertainment scene as the Middle East’s largest gaming establishment. Night after night, its silhouette outlined with brightly flashing stroboscopic lights dominates Jounieh Bay and the pulling power of its gaming rooms and the new risqué “Lipstick” show often turns the shoulder of the Byblos-Beirut freeway into a parking lot.

According to a Casino du Liban spokesperson, the establishment has been increasing its advertising and promotion activities in Arab countries in recent years, and regional visitor flows are growing steadily. How big is this niche exactly? Until comprehensive surveys of visitor behavior are conducted in Lebanon, it will remain unclear just how many of our 438,203 Arab visitors from 2003 found their way into the gaming areas and how many of the roughly 130,000 hotel guests from the Gulf region flew to Beirut specifically and solely for a casino vacation.

What is certain is that the casino patrons are esteemed spenders. The casino’s auditors have held back on releasing the establishment’s books over the last three years, due to unresolved tax disputes. But with pre-tax dividends of $50 on each $145 share (OTC) for 2003 and fiscal participation of 30% in the casino’s annual turnover of an estimated $88 million, investors and fiscal coffers, and to a smaller degree the national economy, clearly enjoy a profitable inbound tourism niche here. Retail shopping was historically embedded in Lebanon’s function as the Middle East’s trading post, back when people from the entire region came to Beirut to shop for goods ranging from abayas to household furnishings.

However, attempts in the mid 90s to run month-long Lebanon Shopping Festivals failed to re-establish Beirut as a retail tourism destination in direct competition to Saudi Arabia’s shopping mall culture and Dubai’s mega sales spectacles. Today, summer sales periods in Lebanon have become successful in attracting regional guests, and for visitors from Levant countries, the wide choices in retail commerce continue to make Beirut a real shopping destination.

Tourist preferences in retail purchases and the share of these expenditures in their overall spending can only be estimated, demonstrating the need for more detailed research into consumer groups and behavior. “They spend a lot on food, a lot on clothing and ladies leave much money at the beauty salons,” said the PR manager of a major Beirut resort hotel with many Gulf customers. However, her colleague at another top house with a large GCC clientele responded that the city is not seen as a major shopping destination by guests in the hotel.

Statistics on Value-Added-Tax refunds still provide the best indicators that are available on the role of retail in inbound tourism. After the program was instituted in 2002, VAT-refunds were reimbursed to visitors to the tune of over $1 million over 12 months. Respective purchases by tourists in the range of $10 million to $20 million in one year would hardly make for a national retail salvation. However, concentration of refunds in certain item categories – 62% of refunds were on clothes and 12% on jewelry/watches – and large shares of foreign-bound sales at some retail outlets suggest that Lebanon’s retail sector has destination potential in a few micro-niches.

While they may not qualify as a destination that people travel 2,000 kilometers to visit, specialized up market clothing retailers Aïshti are an example of an enterprise that attributes a massive share of its sales to non-residents. With the incentive of VAT tax refunds, the retail streets of Beirut’s Hamra and Verdun districts could in the past two years again count on tourism as income boosters during the summer and religious holiday seasons. Large retail projects under development around the capital also count on Arab visitors in their feasibility predictions, and the ABC shopping mall in Ashrafieh in its first summer season is visibly successful in drawing in Arab visitors who otherwise seldom found their way to the quarter’s retail scene.

Like gaming and shopping, music festivals have long been well-known fixtures of Lebanon’s tourism infrastructure. The Baalbeck Festival contributed to establishing the country’s international profile since its renewal in the late 90s, thanks to coverage of festival events by foreign media, festival committee member Leila Bissat told EXECUTIVE, but she agreed that “the Lebanese and expatriates” traditionally comprised the main clientele.

This could change. Numbers of cultural festivals are mushrooming, with locations from Aanjar to Zouk Mikhael adding their profiles to the list of summer entertainment. The majority of these festivals are seen as value-added to the community and perhaps domestic attractions, but some virginal events, such as the Beirut Jazz Festival held last month for the first time, are aiming to make it onto international event calendars.

With the impressive portfolio of cultural backgrounds and settings of Lebanon, festivals have the potential to reach more international fans. At Baalbeck, special performances by world famous artists such as Placido Domingo this summer proved suitable to attract tourists from Jordan, Syria and other Arab countries, Bissat said. And like other festivals, the Baalbeck planners are looking at cruise ships stopping over at Beirut Port for opportunities to organize excursions to festival events.

Some events even aspire to stardom. “This is our first year, in which we want to build the legend of the festival,” said Roland Barbar, the conceptual director of the Byblos Festival. After the festival changed its format into a composition of ticketed performances and a series of free concerts in the consecutive off-Byblos event, he is confident that the annual spectacle will make it to the world agenda within the next three years. The festival, with 24,000 sold tickets in 2003, is certainly on course to achieve financial feasibility.

It would be stretching things to assume that the Byblos Festival and its peers in the assembly of Lebanese summer events could aggregate into a cultural and fun profile that let the country acquire stature akin to the model of global leaders, like the Edinburgh Festival. But by the quality of settings and the enthusiasm of the growing fan base, good music and great moods, festival packages here seem disposed well enough to become the region’s hub and the bridge of cultures between Europe and the Arab world.

The city of Byblos is one of five UNESCO world heritage sites in Lebanon. Its tourism potential is tremendous but much of it has lain dormant. Roger Edde, business tycoon and developer with international experience in Europe and the United States, is a member of an old influential family here. After establishing a beach resort near Byblos in 2003, he has the ambition to turn city and area into a magnificent tourism destination with plenty of new features. To EXECUTIVE, Edde revealed details of his plans.

You are stepping forward with a new and highly ambitious plan for a real estate development in the Byblos area. Why are you proposing such a large project today?

I feel the tourism industry and tourism related real estate in Lebanon are two years ahead of a moving curve, which will move up substantially in the 15 years that follow. I also applied the principle of supply side economics in real estate. Dubai has proven that supply side economics in the construction of real estate in the worst of conditions can be successful. In Lebanon, we are not in the worst of conditions. We may be in one of the most interesting conditions.

What do you intend to develop in the Byblos area?

I was responding to a demand showing on the map of the growth of tourism. By aiming at creating a destination in Byblos I want to emphasize the cultural aspect because I believe in cultural tourism. I want to enrich that concept with what is already trendy worldwide: green villages, where people can feel that they have the quality of life that they dream to have during the years living in hard times in the big cities. I wanted to address also another growing business by developing an area with a large port that will be a port for leisure boats, plus a terminal for cruise liners.

How much land did you own prior to starting things and how much did you acquire additionally?

I had the vision already before, which meant I acquired a lot of land. We are talking about more than three million square meters and I have acquired a third of that recently.

Are the three million square meters continuous or distributed over the entire area?

We are talking about a stretch from the Byblos seaside to the Byblos snow side, the area of Laqlouq, the cedars of Tannourine, the cedars of Jaj and above. I already own 1.6 million square meters in Laqlouq, including a river. That will be the cornerstone for the Laqlouq, Tannourine, Aaqoura, and cedars of Jaj development where we could even promote religious tourism and pilgrimages. I won’t go and invest right now, before the road is done, because I know what not to do.

What do you want to establish on the seaside?

My tendency is to rely on private enterprise and I am not scared of dreaming of the impossible because I don‘t think there is anything impossible. Before starting anything, we had a top urban planner conceive a development for seven kilometers around Edde Sands. We centered the space on the port of Byblos and the volumes that go from the port.

Are you talking about expanding the old port?

No, the old port is small and medieval and cannot be touched. The city of Byblos and the Lebanese government and the UNESCO have already approved the idea of a port in a place called Ras Edde. I have already large amounts of land there. If we wait for the government, we can forget about it.

Building a port would cost how much?

It would be $270 to $350 million, minimum, for the pure port facilities not counting real estate. The cruise line terminal needs more than that because I would also like Byblos to become a place of support facilities and maintenance for the cruise liners.

How much will the entire development cost?

My calculation is now that we will rapidly reach a $2 billion investment, not only land buying but real investment, because we are talking a city development around a very large port facility. At a certain point I will start to accept investors. I have already demand from international pension funds, Arab and Lebanese investors to join in.

So your final vision is an investment volume of $2 billion in developing three million square meters of land?

No, I am talking about Byblos taking the $2 billion, in a triangle between Edde Sands, Amcheet and [the village of] Edde. That would be all connected with tennis camps, sports theme park centers, and a wellness area with clinics offering exams of the quality you can get in the Mayo Clinic.

Then you are focusing on health tourism?

Health tourism and sports tourism, but all in a leisure environment. In some places, you want to be quiet, discreet, in a wooded area out of sight, receive your spiritual treatment. We are already starting an experience of that in Edde Sands with spiritual treatment, for which we have been waiting a lot. At this stage, what we are doing is creating the brand and reputation and testing the ground. We will move when we have enough evaluation of demand.

So going to a next stage would depend on profitability?

It is not profitability. Next stages are planned and would go immediately. I don’t think we would have a problem to fill a large port. In fact, when I would do the port I would probably already have sold most of the space of the port.

How much did you invest in Edde Sands if we take this resort as the seed of the vision?

I am over the $10 million mark, not talking about the real estate but what has been invested into the real estate.

And you have calculated $100 million for a hotel in the next expansion phase?

This is correct for the first stage of the hotel. I think we may go up to $150 million, especially if we are doing a project consisting to a part of a hotel and to a part of a serviced hotel.

How much did land value of your properties increase since you started investing into this dream?

From a real estate point of view, not from a return point of view, every penny I have spent on that land has increased three to five times in value. Plus, I can price anything built on the land today at the same pricing in Solidere or any prime location in Beirut. That is also very important. You are 33km from Beirut but you did something of a real quality in a very unique spot, you can price absolutely at the same level as any prime location in Beirut.

Is it true that you have recently also undertaken other investments?

We have moved into the old city of Byblos. We are buying boutiques in the old souk and in fact collected more than 20 boutiques in the old souk. Prices have already multiplied three to five times; but when I have an offer, I take it. We are defining the market. Only two weeks ago, we hired two high-quality persons and asked them to establish their high quality fresh cuisine into the souks of Byblos. It is a sudden success.

How long until you fill the triangle with $2 billion worth of investment?

I think it will take at least seven years.

How do you respond to people who say that Mr. Edde only developed this project because he owns a lot of land and wanted to increase its value?

That is my right but it is not my reason. In fact, wherever I am starting a project I am buying land at a higher price. I am not a seller of land. Others say Roger Edde is doing politics the other way. That’s true. I cannot afford under the present political conditions to do politics. I don’t like to do politics under the Lebanese conditions as they are today. It is my way to do politics and have people understand that doing things for yourself and for others can be profitable for yourself and for others.

You are engaged in development of the Byblos area to a scale that seems to amount to private town planning. Isn’t there a contradiction?

No, it is not a contradiction. I am doing it privately and at the same time, this is putting a lot of pressure on the public authorities to respect what I am doing and emulate it.

Lebanon has a tradition of feudalism. Is this past of the ZAIM being carried over into the role of private public developer?

I have been born into a family, which has been the ZUAMA of the area historically. I made a real effort not to deal with the area as a fiefdom. I want my area and Lebanon to move out of this mentality. It is an ideological thing for me. I have written about this and I went from village to village to sell my ideas of democratic liberty, political liberty and economic liberty.

What if the public sector might someday say we don’t like this private man to be that powerful?

Then I will go back and run for president.

The less state there is the more responsibility rests on the shoulders of the developer. But could you as developer not take the view that your role is just to build and sell and afterwards pursue other projects?

I can’t do that, for the very simple reason that I chose to live here to give a chance to a place outside of Beirut, which is close to my heart where our name has been associated with historically. The choice of Byblos as a destination for me is a responsibility and also a sentimental choice. There is nothing wrong with that. To worry about the quality of architecture, worry about the quality of the green space, of the sand and the water, investing heavily into a place which honestly was a dump and turn it into a place that many people call heaven, this is a challenge that is part of a responsibility. The project is not a commercial one to me; I would never sell it.

A proud tradition

Lebanon’s adult entertainment industry/sex trade is worth an estimated $140 million (although this figure could be much higher), and employs over 4,000 people. Lebanon has always worn a patina of sin, one that represents a not insignificant portion (7%) of the tourist industry, around even though the ministry might prefer to focus on Lebanon’s more family-oriented attractions. Though hardly transparent, the market can be characterized as highly diversified, as it encompasses everything from the Super Nightclubs of Maameltein, with their bevies of Eastern European hostesses, the new wave of massage parlors (or anti-stress clinics), and the red light bars for the less well-heeled customers. There is also a thriving local and regional market for Lebanese “escorts,” and models. And then there are, of course the freelancers, the women (and men) who work the hotels, cafés and sidewalks, practicing the oldest profession in the world.

The law

Contrary to what most people think, prostitution is not illegal in Lebanon, in the sense that it is not included in the penal code. Only the act to facilitate or encourage prostitution is penalized. Prostitution is regulated under a 1931 law related to the “preservation of public health,” which stipulates that prostitution must take place in a “public house” or “meeting house,” both of which must be run by women over 25-years-old in accordance with the rules of the particular neighborhood. Other regulations stipulate that prostitutes should be at least 21 years of age, be subject to a medical exam twice a week (the fees of which are to be paid by the municipality) and that policemen can make spot checks whenever necessary. In other words, most prostitution in Lebanon is illegal, simply because it’s not done by the book.

Super nightclubs also fall under the law, as they need permits to serve alcohol and (according to a 1947 ruling) stage “non-cinematic” shows, i.e., cabarets. Finally, a 1929 government ruling controls the daily comings and goings of foreign “artists” employed to dance in bars and nightclubs.

These so called artists need a permit issued by the Surete Generale. The text stipulates that the person in question needs to submit “a certificate of previous work or be a member of a known artistic organization.” In case the artist does not fulfill these conditions, the Surete Generale can still authorize her to work “if investigations show the artist is good and qualified.” It is also worth noting that “exciting” dancing and dancing in indecent clothes are also prohibited. The text also regulates entry and stay in Lebanon. Policy today is that “artists” who enter the country as dancers can only stay for six months.

Super Nightclubs

The biggest money-spinners in the adult entertainment sector are the Super Nightclubs, which account for nearly $100 million annually. (For a popular operation, business can be lucrative. Overheads – rent, electricity, salaries, permits, “unofficial payments” etc. – account for 40% of revenues and, given the nature of the business, the finance ministry will find it hard to get a clear picture of monies earned.) There are an estimated 80 genuine super nightclubs in Lebanon, some 40 of which, including the most upscale ones, are historically located in the Jounieh neighborhood of Maameltein. The rest are dotted around Hamra, Ain Mreisseh, Tabarja, Mansourieh, Hazmieh and the mountain resort of Aley. The number of girls employed per club varies from five to 30, but the top clubs such as the famous Excalibur, which can employ up to 40 hostesses, have more. In theory, all so-called super nightclubs offer cabarets, but in reality only in the bigger ones are shows performed, mainly by girls from Eastern Europe and the former Soviet Union.

Show or no show, the main business is about spending time with the girls. The deal generally is that if you spend $60 to $100 on drinks, the girl of your choice will keep you company for around 90 minutes. The easiest option is to buy her a bottle of Champagne, but Whiskey will suffice. Your own drinks at $10 each come on top of that.

For men visiting a super nightclub with the idea it being a brothel, the experience can be rather disappointing. In principle, customers are not permitted to leave with a girl and girls are not allowed to offer sexual favors. The clubs are not bordellos and are subject to regular spot checks by undercover policemen or Surete Generale officers. However, if the customer spends the minimum $60 to $100, the customer is entitled to ask the girl “out” the next day between 1pm and 7pm. (The Surete Generale, which regulates the entry and stay of the girls in Lebanon, demands that the girls are to be in their hotel by 5am. They are not allowed to leave before 1pm and have to be back in the club by 8pm, hence the specific window of opportunity).

This does not mean that she will consent to sex. While some will (the rate is roughly $100), others will merely go for a walk or have a meal. In rare cases, clients can take a girl home the same night, but this is risky and restricted to long-term customers and both club owner and girl must agree. The fee is usually $300, $50 of which goes to the girl. The rest is divided between the owner (for loss of business), and the hotel owner, who must pay off the policeman who checks the hotel in the morning.

From Russia with love

For a foreign worker (they are mostly Russian) to find employment in the Lebanese super nightclub circuit, she must first sign up with an agency (most are in Moscow). A successful applicant’s contract will not stipulate the entire range of what is expected of her once she starts working in her new country of employment, but most arrive with their eyes open. (see Global Trade)

The Lebanese club owner pays a fee of about $150 per girl to the agency and must buy the girl a return ticket of some $800 and pay her an average salary of some $300 a month plus commission (based on her ability to sell bottles of champagne). Girls working in the top clubs however can earn salaries of $600 and even a $1,000. The employer pays some $400 for a permit and medical tests, as well as some $350 for medical insurance. Girls share a room in a hotel. Most club owners will pay for the cost of accommodations, which is roughly $300 a month per girl. Cases have been reported however, in which the hotel fee was deducted from the girl’s basic salary. Total cost to the employer per girl for her six-month stint in his employ is some $5,300.

Massage Parlors

Found throughout the Greater Beirut area, massage parlors, or anti-stress centers, as they are euphemistically known, are technically legal and generate as a “sector” over $20 million per year. Generally clean and well-run, these operations employ some six to 12 mainly Lebanese or Filipino girls, who will give a regular 40-minute massage before offering the extra service. The massage usually costs $20, which goes to the house, while any extras, usually another $20 to $30, is kept by the masseuse, who will often cater to around seven customers per day. A few years ago a string of parlors was raided by police and closed down. Today this “problem” has been resolved and many of the best businesses openly advertise in the local press.

Girlie bars

This cottage industry, the closest you will get to a traditional brothel in Lebanon, generates revenues of roughly $6 million per year. There are about two-dozen in Hamra and Ain Mnreiseh alone, recognizable by the universal red light outside their door. The price of a drink is about the same as in your average club on Monot Street, but there all similarity ends. The madam will waste no time in asking you right away if you want to take one of the three or four (often mature) ladies employed in the bar to a quiet place upstairs or behind the bar. The police are paid off at a local level and the cost of full sex is about $50.

Call girls

The top end of the “adult entertainment” market is dominated by the fearsomely popular Lebanese call girls, who ply their trade in the hotels of Beirut and the Gulf countries. Many of the less ambitious operators advertise in the local press as dancers seeking employment or women looking for a marriage partner, but for the high-net worth clients, the local model agencies and pages of the glamour magazines (showing contestants at bikini contests etc.) are their tele-shopping heaven. In these cases, the agency will arrange a contact and take a cut. In this sense, their activities are indistinguishable from regular pimping. The girls, often aspiring singers or models, can earn up to several thousand dollars a night, more if they are requested (and agree) to travel on one of the regular weekend party charter flights between Beirut, Saudi Arabia and other Gulf countries.

The Freelancers

At the budget end of the market are those women who ply their trade at the street level. Still, they are a solid component of the industry and contribute around $4 million to the sector. They are generally Lebanese, Syrian or African and offer their wares mainly on Raouche and the Jounieh Highway, but they can be found all over Lebanon. They charge between $25 and $50.

Many women (and men) work out of cafés, especially in the BCD, and in collaboration with a waiter who acts as a middleman between the professional and the potential client. She will charge anything between $100 and $500. Given the nature of their work, it’s difficult to estimate how many women are on the game, but it is assumed the number is in the high hundreds.

Lebanon and the Lebanese: part of a global game

Early last month, former British model David Barnett, was sentenced to four years in jail for running a jet set prostitution racket of 40 men and women for rich Lebanese and Saudi businessmen, including members of the Royal family. Barnett was sentenced to four years in prison. Among his four accomplices was 31-year-old Lebanese Wissam Nashef, who helped Barnett to find prostitutes. Nashef was sentenced to three months in jail and had to pay a 3000 euro fine. During the trial Nashef admitted to having pimped for wealthy clients from Lebanon and Saudi Arabia. The global trade in women to work in the sex industry is estimated to be worth between $7 and $12 billion. Since the fall of the Berlin wall, Russia and Eastern Europe have taken over the role dominated by the Asians in the 1980s. An estimated 500,000 Russian girls, or “Natashas,” are working in the global sex industry today, as well as some 100,000 Ukranians and up to 100,000 Moldavians. An estimated 1,500 of them reside in Lebanon.

Keeping up with the neighbors

In Israel the situation is somewhat different. It’s estimated that every year some 3,000 women are smuggled into the country by the Russian mafia and sold for $3,000 to $6,000 each. According to a local media investigation, these unfortunate women work up to 12 hours a day, serving 10 to 15 clients for an average of some $30 a customer, of which the pimp takes up to 90%. In July 2001, the US State Department placed Israel on the black list of countries that do not meet the criteria for dealing with sex crimes.