Saturday, April 16, 2005

Politics Aside: Spend Please

“We have lowered our room prices by 50%”, explains the young owner of the Beryte Hotel just opened in the new year. By the end of the month of January, the new venture seemed worthwhile with an 80% occupancy for its first month’s opening. But the promise of plentiful times took an 180 degree turn with the assassination on February 14, 2005, of former Prime
Minister Rafiq Hariri, killed about 400 meters away.

Across the road, along Beirut’s Corniche, Rana El Khoury, Operation’s Manager of the Palm Beach Hotel explains the shock waves caused by the bomb were disastrous. Sitting in what will be the restaurant on the ground floor, bellboys turned painters, resurface the walls while others adjust the new windows. “We had about 1.5 million dollars worth of damages in the
windows alone. We had to redo everything in the rooms: the curtains, the furnishings, the carpeting, everything.”

Next door, at the InterContinental Le Vendome also facing the sea, Director of Sales, Laurent Gabard describes a similar experience in damages and expands: “It is not only about the immediate cost of damages which hurt us, but also that the impact of Hariri’s death reduced business and tourism confidence in the country…We have seen a 70% drop in business in
comparison to the same time last year.” The number rising up to about an 80% decrease of revenues for other hotels is echoed in most of the empty lobbies throughout the city and country.

“Why?” Jihad Shoughari, Operations Manager of the Beryte Hotel prepares to answer: “Well, you know economy and politics are like siamese twins, you can’t separate the two.” The two go hand in hand. And as Hariri’s death plunged Lebanon in political turmoil, with an opposition engaged in a serious tug of war with the present Syrian backed government, businessmen and tourists have cold feet.

The already tense situation has not been made any easier by five more bombs exploding in commercial areas up to about two weeks ago. But as the explosions claimed few casualties, a regional director for a multi-national explained: “The bombs? Well, it looks more like economic terrorism rather than anything else.” The targeted victims were commercial centers,
clothes shops, and factories among other things.

“We don’t know how we are going bounce back” expressed Shoughari: “we need to see what will come of the elections.” And as Gabard says: “At this point we have to rely on the local market, but they don’t come to hotels”.

And locals have been rallied for economic revival. In comparison to a deserted downtown, as witnessed in the past few weeks, the trend has recently been reversed. Bahia Hariri, sister of the late prime minister, and Nora Jumblatt, wife of the opposition leader Walid Jumblatt, set up a campaign coinciding with the date of the start of the Lebanese civil war April 13th. The message: the war is over, let’s focus on our country and spend. Although the stage that was set up for free concerts has been taken down, the cafes seem to be reaping the benefits of the momentum with people coming through. The downtown is filling with Lebanese making a show of force for revival, and maybe even enjoying a stroll licking an ice cream.

In the meantime, hotels tighten their belts, reducing staff, saving on paper and electricity, waiting for a turn in the tide. Gabard explains that: “at least, in the past few days people have been calling to make some reservations for the summer, which is something compared to last month”.

And as Rana El Khoury of the Palm Beach Hotel says: “If we can get over this crisis, then we will spend a very beautiful summer... We hope to make an impact at the Dubai tourism fair in the beginning of May”.

A few doors down, Mr. Shihab, owner of the Bayview Hotel, sleeves rolled up, glasses on top of his head, speaks to a crew of men up on the top floor as they are preparing the open air restaurant for its opening next month. “What do you want, we have to go on, we are not stopping.” And as his wife put it: “The sea is still here, the sun is hot, come to Lebanon.”

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