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More incentives and services to Arab investors

    This year’s summer was quite different for Lebanon . It was in fact an Arab tourism season that put Lebanon again on the Arab and international tourism map; reminding the Lebanese of the boom their country witnessed in the fifties, sixties and early seventies, despite the different causes.

    The events of September 11^th were among the basic elements that helped Lebanese tourism industry to attract 382,064 Arab tourists out of a total 700,979 people of different nationalities.

    Lebanon’s success in attracting tourists bears great importance, since Lebanon is special regardless of its small area (10,542 square kilometers) due to its diversity and the rarity of its nature, climate and culture. This country also has thousands of years of civilization behind its rich beauty, where each civilization left its marks, like Phoenician ruins over roman temples and crusader castles.

    Since the start of good signs for the tourism season in Lebanon , the service and investment corporations were at full attention to keep up with the event and take advantage of it to support the national economy. It is noted that Lebanon hasn’t seen since its independence such a rejuvenation movement. The Lebanese government has placed its full strength behind this movement, as many ministries have been working around the clock to complete the projects and solve pending issues such as the properties of Arab citizens, especially those of GCC, to guarantee the attraction of Arab tourists to Lebanon .

    The main efforts were focused on the comfort of Arab tourists, especially the supply of proper water and electricity without interruptions and the lighting of streets, also the acceleration of the rehabilitation of roads in tourist’s locations, as well as the renewal of the traffic control system and ensuring adequate security.

    The government has taken two brave steps in this regard after Sept. 11^th. The first being the decision to give visit visas upon arrival and the second is the deal struck with “GLOBAL REFUND CO.” to refund tourists their added value tax paid within Lebanon .

    The Lebanese government has been very busy fixing up what the war has destroyed in the historic city of Beirut where modern skyscrapers are mushrooming side by side with ancient ruins to mix the past with the future.

    Beirut has a trade area that goes through a never-ending maintenance process to restore old buildings and build new high tech ones. It is considered an important trading junction for the Middle East as a whole, due to its portal location and its relaxed banking rules.

    Lebanon had to work very hard after the civil war to regain its popularity in the Arab world as a tourist attraction spot. The war was centered in some major tourist attraction points ( Beirut , Bhamdoun, Aley, and some villages in Al Matn and Al Shouf) unfortunately and it had distanced Arab tourists from Lebanon . The Lebanese government now gives some serious encouragement through a distinctly modern law that enhances the investment atmosphere, which splits Lebanon into three main investment zones:

Zone A, which includes some tourism resorts where it is made easy for an investor to obtain work permits of all types as long as he hires at least 2 Lebanese employees for every foreigner, it also gives contributing companies listed in Beirut Financial Market an income tax relief for 2 years.

Zone B: deploys a 50% reduction of income tax for 5 years in addition to the privileges of zone A.

Zone C: gives a full relief for 10 years of income taxes plus the privileges of zone A.

    The Lebanese government wants to speed up the growth of under developed areas through giving these breaks.

    The law says that IT and Tech projects receive zone C privileges regardless of where they take place. Additionally, the board of the Lebanese corporation for investment may apply zone B privileges to projects in zone A.

    Industry receives a fair share of the spent money, especially since the industrial sector is growing in a direction that implies compatibility with the rest of the Arab markets.

    Technology looks very promising for investors, particularly since the new law gives it a 10-year tax break regardless of where the projects take place, in addition to working along with the society for information technology professionals to enhance technological exports. The society is conducting research along with “Graber Simons & Quan” and the USTDA the feasibility of establishing a center for advanced technology in Lebanon (BETZ), which would attract some serious capital to the region.

    We cannot forget to mention investment in the agricultural sector, in particular after the signing of the Lebanese – European partnership. The Lebanese government is trying to support the exportation of Lebanese agricultural goods by enhancing quality standards and proper packing.

    Arab investment was clearly displayed at the Metropolitan Palace Beirut Hotel in Horsh Tabet area in eastern Beirut , where nearly US $150,000,000 were invested by al Habtoor Group (UAE), which also designed another project in the same area.

    The new project consists of a shopping complex of 2 parts, ground level and subterranean, with a large open joining area. The complex is made up of many stores of different sizes, to suit the high quality goods to be exhibited there. There is also a food court around a large internal garden that’s open on top for natural lighting and ventilation. The height of stores was also studied to ensure the comfort of visitors.

    The hotel building is made up of a ground level with restaurants and a connection to the commercial part. The first floor has the administration and reception offices, and it is also connected to the commercial area.

    In the second & third floors there is a health club and a spa. The remaining floors (4-26) are hotel rooms and suits with 3 technical floors in between.

    The last level is designated for a panoramic restaurant with views in all directions and a helipad.

    There is a large conference/celebration hall in the hotel. Since the new and the old hotels are dependent on each other, a proper connection must be kept, so a pedestrian bridge will be built in between, from transparent materials mostly, so as not to block the view. The project will also add sufficient car parking spaces.

    Tourism, and specially hotels are still a main attraction to Arab investors, because Lebanon has a good climate; while most Lebanese speak several languages, also Lebanon having an open financial atmosphere.

Minister of Tourism:

    The minister of tourism, Mr Karam Karam, confirmed in a communication with Al Shindaga that tourism is being groomed to become Lebanon ’s No. 1 business in order to enhance the financial state of Lebanon . He said that Lebanon is used to high quality tourism and has become the tourism forefront for Arabs. He expects more than 1 million tourists by the end of 2002. Hereby we see that Lebanon has taken a major step forward since September 11^th. The country has always had the tourism culture and Arabs have been there as tourists since the beginning of the 20^th century. That was until the painful war ripped everything apart. Lebanon has all it takes for a great tourism industry particularly for Arabs, who feel at home there because their native language is spoken, that’s why Lebanese family tourism excels. It offers an unbeatable combination of nature, culture and civilization.

    The  question remains, will Lebanon witness an Arab invest revolution as needed?

    Al Habtour Group sensed in the early nineties that Lebanon started its recovery. And, despite a wave of uncertainties that engulfed the whole investment future in the Middle East then, Mr. Khalaf Al Habtour, Chairman of the group, took a bold and meaningful decision: To start partial investment in Lebanon , the second home he used to spend the summer in with his family when he was young.

    Mr. Al Habtour’s decision seemed to be a risky venture driven by his love of Lebanon . But the fact was that he based his decision on comprehensive study and consideration. He also took into account two issues:

-          The importance of investing in Lebanon to support its economic recovery.

-          Investment was an expression of his strong feeling towards Lebanon and   
  an added effort to help the re-construction of the country.