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	Lebanon		Info-Prod Country Guide
CHARACTERISTICS   INDICATORS   ECONOMIC SECTORS   INVESTMENT ISSUES   PROJECTS   PROSPECTS

Principal Economic Sectors Industry The main industries in Lebanon are food processing, textiles, cement, chemicals, oil refining, furniture, jewelry and some metal work. Virtually all industry is privately owned and much of the manufacturing capacity is located in East Beirut. The industrial sector is still trying to recover from the impact of the fifteen year Civil War. The lack of adequate infrastructure, rising costs of services and scarce bank credits are slowing recovery, although imports of industrial machinery have started to pick up. In 1993, the International Finance Corporation (IFC), an arm of the World Bank, allocated a credit line of US$ 45 million to small and medium sized enterprises in Lebanon to be disbursed through local banks. Agriculture Agriculture accounts for about one-third of GDP. Thirty percent of total land is cultivated arable or utilized forest. The most fertile areas are located along the coastal strip and in the Beka'a valley. The main crops are wheat, barley, corn, vegetables, potatoes, citrus fruit, hemp (hashish), olives and tobacco. The primary livestock are sheep and goats. The agricultural sector suffers from labor shortages, lack of banking facilities and rising costs of services. The government subsidizes sugar beets, wheat and tobacco and has succeeded in reducing the lucrative but illegal drug production in West Beka'a and Ba'albeck - Hirmil. Several multinational donors are financing agricultural and livestock projects. Construction and Real Estate The construction sector performed very well in 1993-95, with both engineering construction permits and cement deliveries rising dramatically despite a moderate rate of construction. Real estate and construction attracted a large share of new private investment. Arab investment in the real estate sector reached an estimated US$ 1 billion in 1993. Preliminary results for 1996, however, indicate reduced activity in this sector. Tourism Before the Civil War, Lebanon was a major tourist center, and its scenic beauty, sunny climate and historic sites attracted some two million visitors annually. In 1974, tourism contributed about 20 percent of the country's income. Currently there are about 360 hotels in Lebanon, of which about 90 are in the Beirut area. Regardless, the level of reconstruction needed to bring tourist infrastructure up to pre-war standards is considerable. The Ministry of Tourism estimates that there are some 3,000 restaurants, night clubs, and cafes in Lebanon, compared to a pre-war figure of more than 5,000. There are about 650 travel agencies. With the quieting of the political situation, the private Arab business sector has begun to show renewed interest in investing in Lebanon. Thus, in discussions with the government, Lebanese entrepreneurs now occasionally raise the possibility of improving infrastructure facilities and access roads to tourist sites in the country. During 1993-1995, a number of requests were presented for the speedy repair of the Tyre - Sidon road, which bears a heavy traffic load during the summer months, despite having been severely damaged during the Civil War. Other potential tourist sites in Lebanon where the road network is inadequate are located in the Ba'albeck, Kar'oon Lake, 'Anjar and Byblos areas. During 1993, the Ministry of Tourism announced a plan for the development of the tourist sector. The plan includes the rehabilitation of hotels, service and management training and the cleaning of beaches. In order to encourage Arab tourism, the Ministry of the Displaced has evacuated and returned 300 war-damaged homes to Kuwaiti and other Gulf nationals. Furthermore, in late 1994, an agreement was reached with a German company to rehabilitate the famous Jeita caves, which were used as arms depots during the war. A new hotel is planned in the Khalde area, south of Beirut, which already hosts a number of luxurious hotel-beach complexes, including the Summerland and Coral Beach hotels. In January 1997, a number of hotel unions, travel agents, restaurateurs, and others within the Lebanese tourist industry have announced their intention to cut prices in half in an effort to boost tourism. The year 1995 saw 402,000 tourists come to Lebanon, a 20 percent increase over 1994. Nearly half of the tourists hailed from other Arab countries. Previous Chapter Contents Menu Next Chapter

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