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Lebanon: still waiting one year later |
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Written by Arabian Business
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Continued political instability is having an ongoing negative impact on Lebanon's hotel industry, but hoteliers are confident the country will eventually bounce back.
HVS International's Lebanon - Country Snapshot 2007 report, released in April, revealed the country recorded the lowest market occupancy of all markets between 1996 and 2006 at 57%.
According to the report, in 2006 Beirut hotels saw occupancy drop 4% to 48%; market wide average rates dropped 5% to US $110; GOPPAR dropped 37% to $19; and RevPAR dropped 12% to $53 - the lowest RevPAR on record for HVS International's survey.
Noting that tourist arrivals were still down for January this year, the report's authors Hadrien Pujol and Bernard Forster also provided a warning that "if the situation does not improve in the short term, many hotels and tourism services may face bankruptcy".
InterContinental Phoenicia general manager Joseph Coubat said the hotel's occupancy dropped to 20% during the conflict last July.
"The occupancy is more or less the same [this year]; it is not picking up like it used to," he said. "In 2005 we had a reasonable summer, [but] last July our occupancy was 20%. This year is not clear yet, but the summer is quite slow."
Hotel Cavalier sales manager Ayman Nasserddine said hotels across Lebanon were suffering very low occupancy ranging from 18% to 35%.
"Last year we were enjoying record occupancies, then between July 12 and 14 it decreased a lot, of course, because people checked out or cancelled," he explained. "But after that we went up to 100% again because we had a lot of journalists staying here, then in the middle of August they went home. Slowly it has been increasing again, but last year [because of the journalists] was better than this year."
Nasserddine said the hotel's occupancy now ranged between 40% and 60%, relying solely on the corporate segment because of the weak tourism market.
Gefinor Rotana Hotel business development executive Jeanine Aoun said the property also recorded higher figures last year than this year.
"People are afraid to come here," she said.
While InterContinental's Coubat and Rotana's Aoun both said political uncertainty made predictions difficult.
"We hope it will get better," Aoun said. "But we don't know what will happen."
"As long as there is uncertainty in the political environment and security [it will stay the same]," Coubat agreed.
But hoteliers are confident the country will be able to demonstrate its resilience once stability is achieved.
Mövenpick Hotel and Resort Beirut general manager Jörg Hauri said the industry was "on a recovery path".
"The biggest challenge remains to restore consumer confidence," he said. "The behavioural pattern and return of business has seen a decline versus the same period last year, with bookings being short lead and/or last minute. In spite of all that, our hotel has been successful in boosting revenue from key feeder markets both locally and internationally."
Palm Beach Hotel sales and marketing manager Nadine Zaccour said the hotel's outlook was "good enough".
"Things will get better as soon as the political and military situations are resolved. People forget very quickly, and are on the go very quickly as well," she said. "So as soon as a compromise is signed, you will be sure that Lebanon will improve better than ever."
by ArabianBusiness.com staff writer
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