News updates

The “SME Policy Index: The Mediterranean Middle East and North Africa 2014, Implementation of the Small Business Act for Europe” report was launched recently.  The report assessed policies regulating small and medium enterprises in Lebanon and in 8 other countries of the region, and defined key priorities and reforms needed to liberate the capacities of these enterprises to generate jobs and development.  The report which was put together by the Organisation for Economic Co-operation and Development (OECD), the European Union, and the European Training Foundation (ETF) in consultation with European Investment Bank, highlighted strengths and weaknesses in designing policies specific to this sector based on the Small Business Act for Europe (SBA) which was adopted by the European Union. Key recommendations of this assessment included stimulating coordination between ministries and relevant institutions working with SMEs and supporting the latter, registering SMEs via inclusive services centers, analysing better SMEs’ training needs, organizing training workshops on entrepreneurship, especially on women's entrepreneurship.
Source: Al-Nahar 9 October 2014

As Safir newspaper published a report about the commercial activities in the clothing and footwear sector in Lebanon, which has been declining since 2010.  The president of the Association of Hamra Traders, Zuheir Itani, noted that this year was the worst since 1990 especially with the decrease in the number of foreign tourists, adding that the commercial activity has decreased by 50% since 2010. He also noted that activity was extremely weak even during the Eid.  Another clothing shop owner in Hamra noted that some shops owners were forced to lay off their employees and to reduce costs as much as possible.  He added that the situation has had its toll on all economic activities and has increased unemployment rate and subsequently decreased purchasing power.
A similar situation also prevails in the Mar Elias and the Moawwad markets where merchants say that commercial activity has decreased by 70% since 2010.  The president of the association of merchants of Moawwad", Issam Abdallah, warned about the present dangerous economic situation in the country which is further exacerbated by the road closure and which can lead to the total destruction of the commercial activity.  Markets in the Metn area do not fare any better according to the report as the activity is stagnating in Jdeideh, Zalka and Bourj Hammoud.  The president of the association of merchants in Zalka and Amaret Chalhoub, Philippe Samarani, noted that there is a 30% decline in sales compared to earlier years.

Source: Al-Safir 9 October 2014

Caritas president, Father Paul Karam, signed the day before yesterday 3 Memorandums of Understanding (MoU) with the municipalities of Saida, Tyre, and Qssaybeh, to implement development projects within the framework of an on-going programme entitled “Building Alliance for Local Advancement, Development, and Investment” (BALADI), which is funded by USAID and implemented with a number of local organisations.  The MoU included three projects namely the refurbishment of sports stadiums in cooperation with the municipality of Saida, building a public garden and a cultural centre in cooperation with the Municipality of Qssaybeh and the setting up a permanent traditional crafts center in Tyre in cooperation with the Municipality.
Source: Al-Mustaqbal 9 October 2014

L'Orient le Jour published an article last Saturday on the results of a study it undertook on the “economic contribution of migrant workers from South Asia”.  The newspaper interviewed several migrant workers from Sri Lanka, Bangladesh and India who represent the highest numbers of migrant workers in Lebanon in order to determine their consumption trends. To be noted that, according to the Sri Lankan Embassy in Lebanon, the number of incoming migrant workers decreased over the past few years in view of the deteriorating security condition in the country and the impoverishment of many Lebanese families.

On the consumption trend of migrant workers, the newspaper revealed that out of the average total income of USD 400 to USD 500, some USD 100 to USD 200 are spent on accommodation, and USD 40 on electricity and water bills. The study indicated that food consumption differs according to nationality.  Migrant workers from Bangladesh spend some USD 100 monthly on food compared to USD 200 for Sri Lankans.  Transportation expense is estimated at LBP 100,000 a month, while residency fees amount to LBP 500,000 per year Finally, some USD 50 are spent on clothing every two to three months while remittances to their families abroad are estimated at a total of USD 1000 per year.

Source: L’Orient Le Jour 4 October 2014

The Royal Academy of Science International Trust (RASIT) announced the convening of the first annual international World Women’s Health and Development (WWHD) forum.  The event will take place at the UN Headquarters in Geneva from 19 to 21 October 2014 and will seek to produce an international declaration on women's health for sustainable development.  The organising committee also announced that a young Lebanese woman, Nour al Assaad, was chosen to present the vision of the youth on women's health during the inaugural session.  Al Assaad was selected amongst 2644 young applicants because of the nature of her vision.  Nour is an activist who carries development ideals and works on scientific applications for bringing about positive change and for community development.  The Forum will include several topics, namely women's health and sustainable development, international women's health policies, environment, media, lifestyle and economic conditions and their impact on women's health, women's mental health, scientific research and its importance in developing women's health through early detection and treatment.
To be noted that the Royal Academy of Science International Trust (RASIT) in an international NGO affiliated to the UN and created in 1968.  It seeks to serve humanity through education, health, scientific research and other sustainable development projects.
Source: Al-Mustaqbal 7 October 2014

In an attempt to promote Lebanese economic relations abroad, the Minister of Foreign Affairs and Emigrants, Gebran Bassil, held last week a coordination meeting, attended by the Ministers of Economy Alan Hakim, and Industry Hussein alHajj Hassan, in addition to the General Directors of Industry, Economy, Public Works, Finance, and Agriculture, as well as the representative of UNDP at the Ministry of Economy, Rafiq Berro, and advisor of the Minister of Tourism, Mona Fares.
Minster Bassil explained that the meeting was held in accordance with the old decree numbering 14623, which was issued in 1970 and which regulates the work of ministries in the field of trade and foreign economic agreements. He indicated that the meeting aimed at exploring ways to assist the various Lebanese economic sectors and administrations in marketing Lebanese products abroad, so as to increase productivity and reinvigorate the Lebanese economy. Thus Basil proposed the establishment of a "Committee for Foreign Economic Relations”, which will focus on coordinating and communicating among concerned ministries and agencies, and with trade missions abroad, in order to develop the country’s economic diplomacy, and to open up new foreign markets. Finally, Bassil clarified that this will be accomplished through conducting studies, researches and policy documents. Furthermore, the new committee will make recommendations and will identify priorities, in order to assist in developing foreign economic policies for Lebanon.
Source: Al-Diyar 4 October 2014

Following several reports on rural and eco-tourism posted on the WEEPortal, following is a new article on the subject published in Al-Mustaqbal newspaper, which presents divergent views on the impact of rural tourism, namely in Ehden where tourism in the nature has become widespread albeit sometimes not very eco-friendly.
Concerning this matter, the owner of a tourist agency in Ehden, Chafic Ghazal, noted that his company, which organises various activities such as; ATV driving, hiking and camping, is attempting, as much as possible, to adhere to environmental criteria adding that people are slowly becoming more environmentally as a result of awareness raising and guidance activities. For his part, the environmental activist, Butros Moawwad, challenged a number of unsound practices which are wrongly referred to as eco-friendly, stressing that the fundamental regulations of natural reserves are not being respected.  In support to his argument, Moawwad added that eco-tourism is not compatible with the usage of 4-wheel-drive vehicles in natural reserves. On the other side the report presented the more favorable views of local shops’ owners, among whom that of a bakery owner, Lamya Yaakoub, and of a restaurant owner, Jean Lahhoud, who both concluded that this type of tourism has a positive impact on local economy, stressing that the region's economy largely improved since the start of eco-tourism.
Source: Al-Mustaqbal 7 October 2014

As Safir published today a report on the tourism sector in Lebanon, indicating a sharp drop of 64% in revenues this year compared to 2010, and that is according to Pierre Achkar, Head of the Hotel owners' syndicate. Achkar predicted that total revenues of the sector in 2014, will not exceed USD 2.5 billion, against USD 7 billion in 2010.
Achkar noted that insecurity in the country and the region has adversely affected the tourism sector, with many tourist establishments suffering from serious financial difficulties, and are no longer able to settle their electricity, water and municipality bills. He also revealed that the currently harsh situation has led to the layoff of a large number of employees in hotels and tourist establishments. Hence some 45 thousand workers and employees, from a total of 150 thousand employed in that sector (i.e. 30% of the total), have lost their work during the past four years. He also noted that the number of tourists has drastically dropped from 1.49 million in 2010 to some 987 thousand tourists in 2014, which represents a decline of 39.87%, according to data of the Ministry of Tourism. In contrast the Ministry revealed that the restaurant sector, which largely depends on local consumers, and that of travel which depends on Syrians, performed better than the hotel sector.
Source: Al-Safir 7 October 2014

The Chairman of Investment Development Authority of Lebanon (IDAL), Nabil Itani, pointed out that Lebanon has one of the highest level of expatriates’ remittances relative to the gross national product, as it ranked first in the region, pointing out that these remittance reached some 16% of the GNP. Itani also pointed out that in 2013, Lebanon ranked eighteenth globally in terms of remittances, and twelfth among the developing countries. Itani presented these figures during a speech he gave at the meeting of the International Organization for Migration (IMO) which was held last week in Rome, and in which he stressed the crucial role that Lebanese expatriates play in the Lebanese economy. He also indicated that expatriates have invested heavily in various sectors, including: real estate, services, tourism, banking, IT & communications. Itani also, noted that the public and private sectors are both aware and supportive of the expatriates’ role having established various institutional bodies to facilitate and develop business relations and to attract investments, such as the Central Bank’s fund of USD 400 million in support of entrepreneurship and incubators, as well as “Kafalat’s new fund in support of innovative projects.

Source: Al-Safir 4 October 2014

Amel International Association concluded yesterday, its project entitled “Strengthening the youth capabilities in Lebanon", during a graduation ceremony held for the occasion. The ceremony was attended by some 4250 youth participants, from Beqaa and Beirut and Saida. The project, which targeted refugees from Syria and hosting communities alike, sought to empower Lebanese, Syrian and Palestinian youth, through organizing training workshops to develop their professional skills, as well as providing psycho-social support. The training workshops included various specialties, namely: foreign languages, computer maintenance, information technology, nursing, secretarial skills, and others.
Source: Al-Safir 3 October 2014