In spite of the images of conflict and war associated with Lebanon over the last few years, the Land of the Cedars has (again) become one of the region’s party hubs, as the Lebanese paradox seems to attract many a night owl.
Hassan is a Moroccan banker working in Dubai. Ibiza, Saint Tropez and Mykonos bear no secrets for him. This summer, he spent a five-day vacation in Lebanon. “I would love to party at one of the open space bars and visit Gemmayze,” he said a week before his arrival. Gemmayze is one of Beirut’s trendy streets sought after by partygoers for bar- hopping. “I have heard so much about the Lebanese night life!” Hassan added.
According to Paul Ariss, president of the Syndicate of Restaurant and Café Owners, there are some 6,000 restaurants, cafés, pubs, night-clubs and discos in Lebanon, with the majority of restaurants, cafés and pubs targeting a clientele aged 17 to 35. A serious percentage of those enjoy a steady income and relatively low expenses, since most of the young women and men still live with their parents and clubbing and dining out is a major source of entertainment for them. Moreover, one million expatriates in the Arab world and Africa regularly visit Lebanon, and one of their favorite activities is discovering new places and menus.
Open space bars, beach parties and beautiful girls dancing against the backdrop of golden fireworks have become part of the Lebanese landscape. “Lebanon, as a party destination, can’t be compared to other countries in the region,” said Tony Habr, owner of Addmind, a company that creates, develops and manages concepts in the food, beverage and hospitality business.
For Ramzi Adada, owner of Riva, a company that manages Island at the Riviera Beach hotel and employs over 80 people, Lebanese nightlife has evolved dramatically in the last 15 years. “While Lebanon used to lag behind Europe, it recently has caught up with most international clubbing scenes. The only type of entertainment we might still miss being gigantic clubs such as the ones in Ibiza, capable of accommodating 10,000 people,” he explained.
City with a soul
Lebanon being at the vanguard of the party trade can be attributed to the relatively lax regulations compared to its regional neighbors. “In the UAE more restrictions are imposed on clubs, which are, as an example, expected to close at three in the morning, whereas in Beirut they still receive people until dawn,” Habr said. The manager also pointed to the Lebanese crowd, which is able to liven up any venue. Clubs and bars alike are well decorated and are usually built around a sophisticated concept. “Beirut is a city with a soul, unlike other cities in the region, with the exception of Cairo that has another beat to it, one definitely more oriental. In Lebanon, East meets West,” Adada pointed out.
Nazih is a Jordanian investment banker who visited Lebanon this summer. Instead of spending four days like he originally planned, he ended up staying for more than a week. “The places here are unlike anything I have ever seen and people are also extremely friendly,” he said.
For Adada, one of the industry’s main strengths resides in the permanent metamorphosis and innovative approach. The local hedonistic culture gives the sector a powerful edge.
Quality of service provided is another strength of the Lebanese party trade. “Lebanese have gotten used to a certain level of quality on which they are not ready to compromise,” said Michel Razouk, manager of Rand R. The company, which employs about 70 people, runs and operates Sushi Bar, Cactus, and Graffiti Café as well as the L2 lounge-restaurant in Saida.
The reason behind the success of Lebanese venues? A very competitive market and a savvy client base. “Lebanese tend to lose interest rapidly, which forces club owners to redesign their venues every two years, while this period is usually longer for clubs in the West,” explained Habr.
The Lebanese party scene has been revamped in the last few years. Long gone are old-fashioned dance floors, as today the young women dance on tabletops instead. The scene resembles a huge house party where most people know each other. After all, about 80% of the clients are local, while this figure is only 50% in Jordan. Adada explained that at Island, about 60% of clients are Lebanese and the rest foreigners, many of them Syrians and Jordanians.
“Gemmayze, however, caters to a different crowd than what can be seen on the club scene and this might explain the growing number of Europeans we have seen in recent months,” said Razouk who estimates they might account for about 10% of the clientele.
Partying pays
Revenues depend upon the type of venue. While Razouk said that bar tabs start at $25 per person, club owners estimate an average ticket bill to end up between $80 and $150 per head. “Profitability is much higher for clubs, bars and cafés than for restaurants as profit margins are higher when alcohol is served,” Razouk pointed out. Adada believes that clubs can generate yearly revenues of three to five million dollars and have profit margins of about 35 to 40%.
In such a thriving sector, rumors of corruption abound. Habr reckoned that in some of the capital’s largest clubs tables may be sold to the highest bidder. “Corruption exists all over the world; it is not ethical but it is a reality, especially as some managers may think that someone who’s ready to splurge $500 on a table will certainly spend more. At the end of the day it is all about the manager,” he said. Last summer around the capital Arab tourists were paying hundreds of dollars for a reservation.
Despite some drawbacks, the industry is trying to replicate its success abroad. Habr said that his company started expanding after the 2006 War. “The war certainly pushed people to expand out of Lebanon,” Razouk, who plans to expand in Qatar with four concept restaurants, agreed. “However, the fact that Lebanon has been able to export its know-how is a great achievement in itself.”
