Innholdsfortegnelse for August 2017 i Lebanon Opportunities

A number of management strategies have helped rejuvenate the hotel industry. A decrease in GCC visitors is pushing hotels to look for alternative ways to boost revenues. This includes targeting tourists from Europe and other Arab countries, well as honing the domestic market. The implementation of nonaccommodation strategies has seen hotels focus on their corporate and social offerings: Conference facilities, food and beverage (F&B), and wedding and event venues. Expenses and overhead costs have successfully been controlled without detriment to guests. Long-stay hotels, furnished apartments, guesthouses, and lodges are trending countrywide. Although investors are eyeing boutique hotels, investments in large scale hotels or existing ones are continuing. 5-STAR EMPIRES FIGHT BACK Hotels are finally breathing a sigh of relief after four difficult years. “Business began improving in October 2016,” Rami…

The travel and tourism sector is on the right track. The number of inbound tourists has increased. Travel packages are targeting budget-sensitive travelers from unexplored markets abroad. Outbound tourism is also positive. More citizens are exploring global destinations. To meet growing demand, additional aircraft are being charted. SIGNS OF RESURGENCE There will be approximately two million inbound visitors this year, according to Jean Abboud, Chairman of the Syndicate of Travel and Tourism Agencies. Mohamad Fakih, Managing Director at Concord Travel, Tourism, and Transport International, said there has been a 60 percent increase of inbound tourists. “The country is regaining its position as a touristic hub,” he said. International tourist groups are visiting or planning to visit the country. Charbel Kahaleh, Head of Marketing at Kurban Travel, said Gulf tourists have…

Taxes on construction and real estate are plentiful. They represent in some cases almost a third of the cost of a project. Their effects on market activity have led to a call for different tax reforms, many of which would need Parliament approval. But according to Ahmad Khatib, General Manager of Century 21, a local brokerage franchise, many tax reforms could be done without the need of a law. MAIN FEES AND TAXES More than ten taxes and fees are paid by property developers. In terms of value, one of the biggest is profit tax. After profit has been taxed, each shareholder who then receives part of that profit is also taxed on their share. An ‘improvement’ tax is at times levied on developers. “When the State expropriates land to…

The restaurant and nightlife sector has recovered. A decrease in the number of Gulf visitors has forced restaurant owners to adapt, focusing instead on the domestic market. Menus and prices have had to match the demand. Investments in the sector have continued. To lower costs, budgets are smaller. There has been a growth in investments for innovative concepts, and food clusters are maturing. Professional players have the upper hand, succeeding more than individuals MPROVING ACTIVITY Stability has positively impacted the food and beverage (F&B) sector. It has compensated for the drop in sales during the period 2012-2016 from a lack of high-income tourists and expats. “In the last two years, they have been coming less, but this is changing and Gulf visitors are returning,” said Mario Haddad, Managing Partner of…

Parliament has ratified 38 articles to form the salary scale law for civil servants and public employees. According to Parliament, the salary scale is expected to cost $900 million in the first year, rising to $1.3 billion in the third year. Revenues from a mix of 19 new taxes and those that have been increased are expected to recuperate the cost. Parliament has been given one month to approve the budget. If it is not approved within that timeframe, the salary scale and related taxes will be considered effective. Mohamed Choucair, Chairman of the Chamber of Commerce, Industry, and Agriculture in Beirut and Mount Lebanon pointed to the need for conducting studies to evaluate the economic impact of the salary scale and relevant taxes. Choucair also called for “a comprehensive…

Remittance inflows exceed the two other major capital inflows of foreign direct investment (FDI) and official development assistance (ODA). This steady stream contributes to the income of families, helping to alleviate the social and domestic effects of economic downturns. The country ranks high in a number of areas relating to remittances: First among Arab countries in remittance inflows per GDP, second in absolute value, and one of the world’s top remittance-sending countries. Remittances might decrease during the remainder of 2017 and in 2018. The World Bank said this is due to low oil prices. But because they are sent from all over the world, remittances are not dependent on the economic circumstances of a single country or region. Wissam Harake, Economist for Lebanon at the World Bank, said that any…

Classic brogues and oxfords are being ditched by young professionals for more comfortable sneakers. International designers have been quick off the mark, designing sneakers whose cuts, fabrics, and colors fit the work environment. According to Ghina Fadel, designer at Pellini, this casual look is well suited to those who work long hours yet want to feel comfortable throughout the day. A WIDER ACCEPTANCE Office dress codes have become more relaxed. This has signaled a rise in sneakers being worn in the office – in some sectors at least. Retail, hospitality, design and architecture, and technology are environments in which sneakers are acceptable work wear. The trend has spearheaded more designers to pay attention, having noticed an uptick in the sales of this type of footwear. Such designer powerhouses as Lanvin…

DEMAND ON LOGISTIC COMPANIES IS FLOURISHING The Logistics business is growing rapidly. Demand from distribution and wholesale companies for outsourcing logistic companies is increasing, especially among foreign brands dealing with this model abroad. Ziad Harb, Regional Vice President at Beirut Cargo Center (BCC) Logistics, said: “The international trend is outsourcing third party logistics. The distributor-client can focus on its core business and leave the logistics headache for someone else to handle.” Companies that are family-owned, favor the close seller-buyer relationship. But Magdi Ghossainy, Deputy General Manager at Radec Logistics, a third party logistics (3PL) company, said: “These businesses once had owners whose mentality was traditional. The second and third generations are changing things. They are now aware that it is better to use a third party.” The logistics business is…

The number of resorts is growing in size and number. Competition is fierce. Resort owners are implementing alternative strategies to help increase footfall and profits. MORE BEACHES Beach resorts have multiplied. They are bigger, more upscale, and have more services and greater accommodation options. The number of resorts on the southern coastline has increased from three in the early 1990s to 58, according to Ghassan Abdallah, Secretary General of the Syndicate of Maritime Firms. The season began with a flurry of new beach venues in Damour. These include Adam, Damour Country Club, Bella Mare, and Splash. Assem Nemr, shareholder and General Manager of Splash, said investment exceeded $2 million. The 10,000 m2 Splash resort comprises a waterpark that includes two swimming pools. The 9,000 m2 Damour Country Club opened three…

Increasing luxury perks and personalized services are fueling the growing demand for premium credit cards. Banks are adding services for cards already supplied by international card companies: Visa, MasterCard, and American Express. The premium card business is rewarding and banks continue to look for ways that appeal to potential cardholders BANK PORTFOLIOS Premium cards can be categorized into six types. More or less in descending order, these include Centurion, Infinite, World Elite, World, Signature, and Platinum. BLOM Bank’s premium credit card portfolio includes Visa Infinite, American Express Centurion and Platinum, and MasterCard World. After acquiring HSBC, MasterCard World was added to the list. Another premium card in the bank’s portfolio is Visa Signature, which is co-branded with the in-house Arope Insurance. The bank limits cards that have similar features. Jocelyne…

Personal watercraft, or Jet Skis, an actual brand name, have become more refined and powerful. Additional features provide better performance and help when navigating different sea conditions. Docking facilities are available and often include maintenance and storage services. NOTED BRANDS Three watercraft brands are available on the market and sold by three different companies, each dealing in a single brand. Sea-Doo is marketed by Speed Marine, Kawasaki by RYMCO Powersports, and Yamaha by Dabbous Marine. Sea-Doo watercraft ranges from beginner to professional models. The three-seated Spark and Spark Trixx are suitable for beginners and families. Both models are lightweight, making it easier to board on yachts, according to Robby Binni, Sales Manager at Speed Marine. The Sea- Doo range includes the luxurious and top performing models of the GTX Limited…