“We feel a big difference, the street is so empty,” Yara Abi Fager, business manager of this Lebanese restaurant located in the Jemmais neighborhood known for its trendy restaurants and nightlife, tells Loosa. The neighborhood’s streets have been empty since the start of the war in Gaza on October 7 and clashes between Hezbollah and Israel on Lebanon’s southern border.
“Usually we feel very uncomfortable, our nerves are on edge, and this affects our decision to leave the house and spend money,” says Yara.
Although Lebanon is not officially at war, fears of the country being drawn into a conflict are already affecting an economy that, even before the hostilities, has, since 2019, been one of the worst economic crises of modern times.
Since the start of the conflict in Gaza, activity in the restaurant sector has dropped by 70% to 80% during the week and by 30% to 50% on weekends, according to the Union of Restaurants, Clubs and Cafes. Gaza Lebanon.
One of the most affected sectors is tourism, which is estimated to account for 20% to 40% of the country’s GDP. Several countries such as France, the United States, the United Kingdom or Germany have not only advised their citizens not to travel to Lebanon, but have asked their nationals to leave the country immediately “in view of the unpredictable security situation”.
“Commercial flights are still available, but with limited capacity,” the US embassy wrote in the most recent announcement.
Lufthansa, Swiss and Saudia airlines have canceled all flights to Lebanon. Flag carrier MEA has transferred most of its 24 aircraft to other countries, with only 8 in service at Beirut airport, after insurance companies cut policy coverage for wartime damage.
At the Beirut airport, you can see the emptiness. Few planes on the runway, practically no queues, few passengers.
“Tourists, like many Lebanese living outside the country, bring with them foreign currency to help Lebanon deal with the crisis,” Sybil Risk, director of public policies at Quluna Airada, an NGO focused on reform, tells Lousa. Lebanon.
The MEA’s decision led to an 80% drop in the company’s flights and drew criticism from the government.
“I am totally against this decision because it creates a very negative impact on the country,” Lebanese Economy Minister Amin Salam told Lousa.
“It sends a negative message to those coming to Lebanon or importers and exporters to Lebanon, and creates a negative impact on the economy,” says the minister.
Economist Sybil Risk further explains, “Insurance companies are already assuming that Lebanon is at war, and the cost of insurance has increased for all goods going to Lebanon, which will have an impact on prices in a country where inflation is already very high.”
Economy Minister Amin Salam tells Loosa that the price hike could be between 1% and 3%. He insists that the consequences of a new war in Lebanon are incalculable.
During the last war between Hezbollah and Israel, in 2006, Israel bombed Beirut airport, the city’s only airport, and imposed a total blockade of access roads and sea routes to the border with Syria. If this happens now, the country, already weakened by a protracted economic crisis and dependent on imports, will find its residents unable to access essential goods such as food and fuel.
“Whatever happens to make Lebanon go to war will really take us into the middle of nowhere, I’m serious,” says Minister Salam.
“Because our infrastructure is so bad and our economy is so weak. We can’t afford even a small push or even a small increase. [de violência]”, says Salam.