The hospitality industry, which has witnessed an encouraging summer season, is not likely to return to the same old ways of doing business as it is undergoing a major makeover. This transformation is the product of the disruptive effects of the economic and financial crises, Port Explosion, and Covid-19 pandemic. Large-scale layoffs and the talent bleed have created vacant jobs that are being filled by young fresh graduates who are rejuvenating the hospitality workforce. The closure of businesses especially in Beirut is making the launch of new ventures easier as vacant locations have become more available. On the other hand, the decline in salaries, which seems to benefit hotels and restaurants, is likely to be short-lived and has been already offset by the rise in the cost of utilities.
Improved performance
Hospitality, which was one of the most affected sectors by Covid-19, is benefiting from the recovery in travel and tourism activities after the global easing of pandemic restrictions. Around 1.8 million people are estimated to have visited the country this summer. About three quarters of the visitors are Lebanese expatriates. The remainder mainly consists of Arab tourists especially Iraqis, Egyptians, and Jordanians. The percentage of non-Arab foreign tourists, who are mainly interested in ecotourism, has increased to 28 percent of the total number of non-Lebanese visitors. Tourism receipts are estimated to have reached nearly $5 billion. Tourism receipts totaled $8.7 billion per year, General Manager of Gefinor Rotana. GOP is a key performance indicator (KPI) that shows the profits of a hotel after subtracting operating expenses. , General Manager of Albergo Hotel, a boutique hotel located in Ashrafieh, said: “We are doing very well this year. We had already closed 2021 with an occupancy rate of 67 percent and with an average room rate of $398 which is really good.” Albergo Hotel is part of Relais & Châteaux, an international association of luxury hotels and restaurants. The average room rate of four and five star hotels in Beirut increased from $59 in the first half of 2021 to $66 in the same period of 2022.
