Tourism Sector in Lebanon Policy Recommendations
Tourism Sector in Lebanon Policy Recommendations
JULY 2018
CONTENTS
1. Tourism in Lebanon
a. Overview
b. Opportunities and Challenges
c. Policy Initiatives
a. Administrative Environment
b. Control vs. Problem Solving
a. Preconditions
b. Organization
c. Set Supply & Demand Criteria
d. Intelligence
e. Portfolio of Tourist Products
f. Engage, Debate & Market
g. Directions & Good Practices
5. References
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Summary
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1. Tourism in Lebanon
a. Overview
However, tourism has been a rapidly growing source of foreign income and a strong
pillar of the national economy, following a period of relative political stability and
security.
Its direct contribution to the national and local economy includes visitor exports,
domestic expenditures, internal tourism consumption, and purchases by tourism
providers, whereas its indirect contribution includes domestic supply chain, capital
investment, government collective spending on tourism, and imported goods for indirect
spending.
In 2017 tourism continued to follow an upward trend, reaching 19% of GDP. The
Ministry of Tourism reports that, in 2017, tourist arrivals hit their highest level since 2011
with 1.85 million tourists visiting the country, revealing a 10% yearly increase2. By 2028,
international tourist arrivals are forecast to total 2,995,000, generating expenditure of
LBP20,357.3bn, an increase of 6.0%3. According to World Bank and national
authorities’ estimations4, over the first 11 months of 2017, hotel occupancy rates
averaged 64.4% with the latter registering an increase of 6.9% over 2016 and the
highest rate since 2010. With its labour - intensity characteristic, tourism contributed
338,600 related jobs in 2017, almost 15% of national employment.
1
World Bank - Lebanon’s Economic Outlook, April 2018, found at:
http://documents.worldbank.org/curated/en/189231523637982157/pdf/125256-MEM-April2018-Lebanon-
EN.pdf
2
Bloominvest Bank - Lebanese Tourism Sector: 2017 in review
3
World Travel & Tourism Council - Travel & Tourism, Economic Impact 2018, Lebanon, found at:
https://www.wttc.org/-/media/files/reports/economic-impact-research/countries-2018/lebanon2018.pdf
4
World Bank - Lebanon’s Economic Outlook, April 2018
4
Lebanon has won the title of the “champion of the MENA Region”. According to the
World Travel and Tourism Council5, Lebanon ranked in 64th position out of 185
countries in 2016 with an absolute contribution of USD 9.2 billion. It came ahead of
Jordan (69th), Tunisia (76th), and Cyprus (89th). Moreover, real growth forecasts of
2.8% for the year 2017 positioned Lebanon in 140th place ahead of Italy (149th),
Tunisia (160th), Egypt (166th), and Turkey (171st) (see below).
European tourists grasp the lion’s share of tourist arrivals, constituting 34.45% of the
total. In details, French tourists, constituting the largest share of European tourists at
27%, went up by a yearly 13.31% to 169,787 visitors. The number of incomers from
Germany, the United Kingdom and Sweden also saw respective yearly improvements of
12.99%, 12.96% and 15.14% to 70,045, 98,914 and 39,864 in 2017. On the other hand,
the number of Arab tourists, constituting 30.23% of the total, displayed a yearly increase
of 7.33%, to stand at 561,273 tourists by December 2017, mainly attracted from Saudi
Arabia, Iraq and Kuwait. According to the data availaible, internal tourism has been on
the rise specifically in the years following the political turmoil in Lebanon’s neighboring
countries, like Syria.
5
World Travel and Tourism Council - Travel & Tourism, Economic Impact 2018, Lebanon
5
Source: Bloominvest, Lebanese Tourism Sector in Review
Moreover, Beirut ranked in 5th place in the top 10 destination cities by international
overnight visitors reaching 1.69 million international overnight visitors in 2016, growing
by a yearly 11%. Moreover, Beirut came ahead of Cairo with a total of 1.55 million
visitors followed by Tehran (1.52 million), Cape Town (1.37 million), and Casablanca
(1.05 million), according to the World Travel & Tourism Council.
The other side of Lebanon’s tourism policy attracts visitors for the rural areas, in the
context of the 5-year Rural Tourism Strategy. According to the paper6, “the strategy was
developed through consultations with rural tourism stakeholders between January and
July 2014 and its goal is to enhance economic opportunities in Lebanese rural areas
through improving the competitiveness of specific value chains, including rural tourism
and another set of agriculture sectors and food products.”
6
Ministry of Tourism - Lebanon Rural Tourism Strategy, 2015, found at:
http://www.mot.gov.lb/Content/uploads/Publication/150225013030192~Rural%20Tourism%20Strategy_E
nglish.pdf
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b. Opportunities and Challenges
Overall, the prospects of the tourism industry in Lebanon are promising (see below),
although the industry remains sensitive to geopolitical, political and security fluctuations.
As a significant resource of foreign exchange and with its independence from state
control, it offers an alternative to decaying exports in raw materials and agricultural
products as well as it adds to the competitiveness and the transformation of the
business environment in the country, towards a more service-oriented economy.
Source: World Travel & Tourism Council, Economic Impact 2018, Lebanon
Tourism can also become a driver for investment in infrastructure works, a more
sustainable approach towards natural resources as well as a more decentralized
development model that can benefit the regions and the municipalities with more
income and jobs. In order to avoid a painful disruption, similar with that of 2006,
Lebanon needs to reform its public institutions and its resilience towards external
shocks, given the country’s frail fiscal condition.
Tourism can prove a sustainable path for the Lebanese economy if policy makers and
legislators incorporate it in a more strategic approach about the future of the country
and the role of public administration in the shaping of a more stable, efficient and open
economic governance model. Lebanon will need to set clear national goals and invest
time and resources towards a more open and sustainable tourist sector, that will
disseminate its benefits across municipalities and the regions of the country, while it will
have the capacity to address contemporary challenges in the fields of climate change,
immigration, security etc. Given the scope of the study, we propose a number of
necessary reforms in the central administration but we emphasize more on policy
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directions and good practices that could pave a path for a more prosperous and
innovative tourism policy in the future.
C. Policy Initiatives
However, Lebanon is not among the countries that have developed and currently
implement a comprehensive strategy for the tourism sector. Although there have been
sporadic initiatives in the past, the lack of political and economic stability has deprived
the government and the businesses from the creation of administrative, cooperative and
inclusive policy orientation for the long-term.
Among the initiatives the MOT has taken in the past are the following:
● The Lebanese diaspora tourism promotion programme (Ana) has targeted 14
million Lebanese abroad and offers them a variety of visitors’ ‘packages’ to visit
their homeland at least once in their lifetime.
● The Phoenicians’ Route Initiative, a cultural tourism promotion project, designed
itineraries along 18 Mediterranean countries and more than 80 towns of
Phoenician-Punic origin and culture.
● The ‘Authentic Shouf” campaign was dedicated to the promotion of the Shouf
region and its environmental, historical and cultural assets.
● The five-year Rural Tourism Strategy (2015) aims to enhance economic
opportunities in rural areas through improving the competitiveness of the rural
tourism value chain.The Government has prioritized the conservation and
development of archeological sites and their urban surroundings throughout the
past decade in Byblos, Baalbek, Tripoli, Tyr, and Saida. It is argued that for every
US dollar invested in cultural heritage in Lebanon, US$ 7 of additional economic
activity are created. The Investment Development Authority of Lebanon (IDAL)
provides incentives for investors, including exemption from corporate income tax,
reduction on work, residence and construction permit fees.
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OECD - Tourism Trends and Policies in 2018
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Ministerial officials argue in favor of the success of the strategy. The Ministry of Tourism
reported that rural hotels and accommodations were highly booked throughout the
summer and high season periods of 2016. There is a growing number of visitors who
seek to experience local destinations, authentic cultures, heritage, nature and
gastronomy in rural and semi-urban areas. Indeed, the strategy offers a significant
potential for the tourist sector with measurable opportunities for local enterprises, more
jobs, diversified sources of income, welfare, knowledge, innovation, economic and
social cooperation, provided it is constantly updated and endorsed by all local and
national stakeholders.
2. Ministry of Tourism
a. Administrative Environment
The Ministry (MOT) has initiated a series of reform efforts to simplify its procedures and
allocate human and economic resources in a more meaningful and efficient way. In the
context of the project, it has been estimated that the 10 most burdensome procedures
amounts to 12.390.694.000 LBP, and stand up to 95% of total procedures in the
Ministry of Tourism. An interesting finding is also the fact that only two procedures, i.e.
the Tourism License for existing building and the Tourism license for new building
exceed 50% of total administrative costs for Ministry of Tourism.The sector policy in this
perspective is rather rigid because stated in different laws and decrees, which make the
reference to an overall documented policy rather difficult to track, it is subject to
different interpretations from the involved actors and, last but not least limits changes,
intended as evolution, in the course of action that in this way depend mainly on
legislative action.
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A recent IFC (World Bank, 2012-2013) project of simplification has made a number of
recommendations through a set of corrective measures, above all in the area of
regulations. Moreover, the project analysis of administrative procedures and norms has
acknowledged the following8:
8
Bouas, K & Katsimardos, P. - Analysis of Administrative Procedures and Official Norms, Technical Assistance to the
Administrative Simplification in selected ministries in Lebanon (Ministries of Social Affairs, Tourism, Public Health and
Industry, Financed by: EU General Budget, Service Contract ENPI 2014/348-279
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- The Department of Tourism and Festivals according article 7 par.2 of the law
10339 of 23/05/1975 is attributed responsibilities that, as spelled out, may be
more appropriate to assign to specialised departments within the Ministry of
Culture.
- The Department of Hotels and Catering is practically assigned the same
responsibilities as the Department of Hotels and Enterprises.
- The mandate of the Department of Technical Studies overlaps with the
responsibilities of similar bodies that concur to the assessment of projects
regarding the touristic infrastructures. This is particularly true for the technical
studies pertaining to the safety of touristic facilities both for the part regarding
the physical structures and the hazards to health, or to the environment.
- The deficit of human resources is significant. The poor quality of the job
descriptions and the slow pace of recruitment to fill the vacant positions are also
in the case of the MOT the most important factors at the origin of the deficit.
Horizontal internal redeployment is the preferred option to temporarily filling
posts. Moreover, the assignment of positions and promotions according to
religious affiliation is also taking place in the MOT.
- The interaction with the Ministry of interior regarding the Touristic police needs to
be reconsidered particularly and some thoughts should be given to re-assigning it
to the municipal authorities exclusively for the administrative sanctioning.
- The interaction with local government authorities follows the same model as for
the other ministries. Strengthening the institutional mandate and rehabilitating
organisations and structures is the remedy for improving and making efficient
and effective the relationship between centre and periphery. As a matter of fact,
the best practice in the EU countries shows that licensing and inspection of
touristic structures is fully devolved to the local (regional and municipal)
authorities with the ministry in charge of defining the development strategy of the
touristic sector, standards for the management of facilities, policies and
programmes of touristic promotion to be coordinated with the regional
governments.
- There is no evidence of interaction among departments within services. Each
Department reports directly to and depends on commands from the Head of
Service. The decision-making authority of the Departments is limited to the
expression of favourable opinion on the issuing of licences and nothing more.
- The level of automation within the MOT is lamentable both from the viewpoint of
the infrastructures and also of the services in support of ITC. The management of
hardware and software maintenance is in the hands of private contractors. The
workflow software is not functioning and intranet is missing although the cables
and physical network is in place.
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- The management of personnel affairs like in the other 4 pilot ministries is
centralised and inadequate in the current format. The staffing levels are
inadequate for the structure as it has been defined. Perhaps the same staff in a
reduced number of Departments incorporated according to criteria of similarity of
mandate might be beneficial to the quality of services rendered by the MOT.
Given the aforementioned deficits, the current project has advocated on a series of
policy developments that will empower the bureaucracy with the capacity to regulate,
design policies and decentralise much of its daily operations to the municipalities. In
other words, the transition from the ‘control’ mentality towards a problem solving system
will liberate human and financial resources towards better policy and service outcomes.
The proposed reforms can be summarised as follows:
● Strategic Planning and Evaluation: The MOT should initiate the creation of a
competent Policy Unit to design and evaluate policies, in close cooperation with
the department of Research and Documentation.
● Simplification. In the context of the Draft Decree 4221, it is necessary to integrate
the preliminary permit with the final permit, to unify and codify all sectoral
legislation, to define the rules of policy planning and clarify all intersections with
other policy-making bodies.
● The One Stop Shop (applications for licences & complaints) is in need for
development & computerization as well as the outsourcing of licensing.
● The Inspection Function, currently undertaken by the Inspectors & the Tourist
Police, assisted by Complaints Dept) need to be integrated & streamlined within
the service
● The Tourism Promotion function should be adhered to one agency (a national
tourism promotion agency) instead of many Ministerial Departments or sporadic
campaigns undertaken by private public relations companies.
● Merging and streamlining the management of national touristic sites and
facilities, touristic enterprises, government - owned rest houses, the conduction
of technical studies by the Service of Research and Documentation supervised
by the Department of Technical Studies for newly discovered or established
sites) to avoid fragmentation of activity, delays and bureaucratic “bottlenecks”.
● Decentralization of services, resources and pure regulatory functions from the
MOT to the Governorates and the Municipalities, for which capacity will need to
be created and responsibilities precisely defined. This would require initial
capacity to handle licensing procedures at the regional level. Progressive
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establishment of one regional office for Mount Lebanon and Beirut with
competence in the area of tourism according to the de-concentrated model.
● Inadequate Financial Resources can be addressed through the promotion of
synergies and joint ventures with private sector & non for profit organizations in
the fields of thematic tourism, welfare, social economy, environmental protection,
culture etc.
● Inadequate Number and Training of Civil Servants calls for a radical redesign of
HR and training procedures, as the licensing and inspection task in MOT are
draining the ministry human and financial resources.
The above steps are expected to introduce one transaction form for each procedure and
a substantial elimination of administrative burdens, supportive documents, processing
time and internal administration cost in the medium and the long term as well.
a. Preconditions
Global tourism experiences a rapid growth over the last 60 years. This trend is
expected to continue with international arrivals forecast to increase by an average of
3.3% per year to 2030 (4.4% to emerging destinations and 2.2% to advanced
economies, according to the UNWTO and the OECD..Despite its steady growth over the
last decades, global tourism is not disconnected from economic and political downturns
but depended on multiple dimensions as visitor demand, sustainability criteria, new
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technologies, travel mobility, investment, infrastructure, skills and an integrated
approach across departments and levels of government, with input and support from
industry and the research community.
● Political stability and peace should be continued and further deepened through
more inclusive institutions and the opening up of the economy and the
democratic governance to internal and external competition of ideas, markets
and trends. A solid national strategy by the new government can essentially
assist the country in making decisive steps in modernisation.
● Administrative Simplification & Restructuring of Tourism Policies will assist the
MOT in devoluting its daily operations to municipalities and regions, to build
capacity in better regulation, policy design and effective control and assessment
of its policies.
● A Business-Friendly Environment, especially for the SMEs including a VAT
reduction for new investors and employment incentives for new business will
attract new capital in the tourism market.
● Interministerial Cooperation, especially in the fields of Transportation, Security,
Health, Competition is a prerequisite to avoid policy discontinuities and
inconsistencies.
● Agricultural Production & the production of Chain of Added Value can be assisted
through organized promotion of clustering in the regions, to enhance the Rural
Tourism Strategy and connect the urban with the rural economy.
● Combating Environmental pollution, especially air pollution, water management,
waste management, creation of green spaces, traffic congestion should be a
governmental priority, especially after the country’s endorsement of the UN’s
Sustainable Development Goals (SDGs).
● Promotion of Food Quality and Safety, by setting quality standards, promoting
labour training through special programs and introducing a system for the
traceability of goods
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● Improve Transportation both in urban and rural areas and upgrade its efficiency,
capacity, connectivity, the development of a bus network and the monitoring of
taxi pricing.
● Setting Customer/Visitor Protection Rules and a transparent information
mechanism, so that foreign visitors ar aware of the domestic rules and the
existing institutions that accept complaints and resolve disputes.
● Create a consultative environment where Business & Non Profit Incentives can
assist each other and suppress high operational costs, while clarify investment
incentives.
● Promote Public - Private Partnerships based on the traveler’s experience,
including airlines, taxis, volunteers, tour operators, residents etc.
● Draft a National Marketing Plan based on extensive consultation, intelligence,
surveys and cooperation among the state and stakeholders, following the
successful method that resulted in the Rural Tourism Strategy Plan.
● Encourage Local & Regional Promotion by utilising the Association of
Municipalities key role
● Develop further key tourism areas and activities (Sustainable, Sports, Religious,
Gastronomy, Festivals, Marathon, Conferences, Financial Services,
Health/Medical tourism etc)
● Foster Internal Tourism and introduce holiday programs for the poor families.
● Invest time and money in the Improvement & Maintenance of archaeological
sites
● Assist private income through sharing economy platforms in accommodation,
transportation etc and regulate it according to taxation and urban planning rules.
It is proven that Ineffective tax regimes for digital P2P platforms create an unfair
business environment, particularly in the accommodation market and especially
for SMEs.
● Review Seasonality to combat overtourism by extending the tourist season
through more offered activities, sports, conferences, cultural events, on a
year-round basis.
● Endorse the Sustainable Development Goals horizontally & set policy targets per
Ministry (OMSAR)
● Join the Open Government Partnership to introduce transparency, accountability,
public consultation principles & methods horizontally
b. Organization
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In order to draft and execute regional or municipal tourism strategy plans, it is essential
to introduce a competent authority for the organization, the coordination, the
coordination and the cooperation with the central administration and the stakeholders.
This authority can be a “Destination Management Organization” (DMO), which will
report to the Ministry and the Governor about the progress of the tourism strategy.
The works of the DMO can be assisted by a “Monitoring Committee”, that sets priorities
and oversees the progress of the plan for the best possible allocation of resources. The
Committee communicates with other governmental, business and social entities in the
context of the collective effort, organizes conferences and events, conducts surveys,
engages with the local economy, encourages the networking of agricultural producers
with hotel and restaurant owners, promotes dissemination and information activity for
the public and the visitors and if necessary, introduces “protocoles of cooperation”
among all local and regional stakeholders (see below)
In order to draft a Tourism Strategy, the MOT in cooperation with the regional and local
DMOs need to have a detailed picture of supply and demand trends in Lebanon. To
achieve this, it needs to set a list of supply and demand criteria as:
● Demand for tourism field at the local level (Regions and Municipalities)
● Development trends for tourism at the local level (Enterprises, professions,
opportunities for clustering and specialization, accommodation capacity,
infrastructure etc)
● Accessibility (combined transportation networks)
● Product supply readiness (logistics, standardization, supply chains, local
markets)
● Contribution to local growth strategy (or how tourism can enhance or contribute
to regional or municipal growth)
● Competitiveness & comparative advantage (so that every region has a its own
list of interior and exterior comparative advantages for the visitor)
c. Intelligence
The next step involves the collection of data for cities and regions, in order to conduct
regional and city strategy plans, including branding and marketing campaigns. The
DMO and the competent policy unit of the MOT can collect and analyze information,
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assisted by business associations and other stakeholders. Data sets of the following
categories is required:
Every region/city should have a portfolio of its tourist product. The portfolio defines the
identity and the brand of the place and includes a variety of experiences offered to a
typology of visitors.
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A complete portfolio allows policy makers to identify competitors for the country
(international level & regional level), for the regions (internal competition), for the cities
(internal competition) and for the cities (international competition).
Following the successful deliberation model of the Rural Tourism Strategy, more
inclusive debates are needed both at the national and at the local level. An inclusive
engagement strategy, implemented by the regional DMO and the Monitoring Committee
includes:
The MOT should have an enabling and facilitating role in the dialogue and in providing
an open environment for the exchange and sharing of knowledge in close cooperation
with the DMOs. The major objective is to create a collective community of shared
interest that understands the sector’s opportunities and challenges, develops actions,
works hand in hand and declares its readiness to contribute to the country’s growth
path, through a sustainable year round tourism strategy that stretches among all
territories; cities, rural and coastal areas, islands and mountain tops.
A successful marketing plan reflects the identity or the (national/regional) brand. A city
or a country brand consists of values, geography, history, culture, tradition and in the
case of tourism includes its unique characteristics and its comparative advantages. In
the case of Lebanon the security issue discourages western travelers from
visiting/exploring the country, hence a national marketing plan has to be honest and to
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present the positive developments on the security front in combination with the
attractive tourism product the country offers. A similar campaign was orchestrated in the
past by Colombia (with the motto “the only risk is wanting to stay”9), that managed to
eliminate negative impressions and present the positive and peaceful aspect of the
country.
At the city level, Beirut could be either a city break destination or a city to be explored
further for its culture, gastronomy, history and elegance. The BeBeirut campaign is a
remarkable effort to (re)brand the city and bring it closer to the visitor, however it
requires continuity, civic engagement, more depth and connection with the daily life of
its residents. Contemporary city branding, as executed in cosmopolitan cities like Paris,
Amsterdam, New York etc, requires a bottom-up approach, where the residents decide
about their identity, the desired quality of life and the promise of their city before they
invite visitors, entrepreneurs, students etc to travel, study, start up, invest etc.
International visitors are tempted by cities that demonstrate a genuine determination to
change and overcome the crisis, as it is the case for Athens, Greece. A city that almost
monopolized global tabloids with pictures of violence, unrest and social drama during
the financial crisis, is now considered an emerging cultural center, a city break for arts,
gastronomy, nightlife and history that decided to exit the crisis with a new identity,
based on the resilience and the determination of its people.
9
See video at: https://www.youtube.com/watch?v=F8y4gBz4bR0
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National and Local Quality Agreements introduce a holistic quality approach throughout
the supply chain of touristic products and services. It requires:
Cultural Routes are built around a specific cultural theme, eg. archaelogical sites,
ancient theatres, cultural monuments and are based on the collaboration between
archaeological services and local governments, the mobilization of leading experts in
the field of monument restoration and the development of new volunteering and
sponsorship initiatives.
Sustainable Cultural Festivals is a necessity for Lebanon and they can survive without
being dependent financially on the state, as follows:
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● Attract money from donors (private sector, foundations, programmes) - not public
subsidy.
● Operates under private sector rules and management, the State has only
supervisory role with an aim to provide high-end cultural products to domestic
and international audiences
Tourism Trails in different regions such as wine trails, religious trails, and archeological
trails will help develop productive sectors in the area and link different producers, both
at the horizontal and vertical levels. They will also allow the Ministry of Tourism and
private tour operators to promote holidays targeted around those trails. Finally, the
development of trails will contribute to the decentralization of tourism and regional
development of areas outside of the main cities, and thus promote sustainable rural
development, job creation and growth in all regions.
Other good practices and tourism themes that can contribute to the model of
sustainable tourism are:
● Pilgrim Routes
● Architectural Routes
● Familiarization trips (movie productions, reality-games, adventure games)
● Small Businesses Excellence Networks
● Organization of Marathons and Trails
● Cycling Rounds
● Dance Music Festivals
● Cities of the World day
● Street Theatre
● Open Air Cinemas Film Festivals
● Culinary Routes
Over the last years there has been a growing recognition of the importance of the
development, management and promotion of local destinations, supported by regional
or local structures and funding, and the preparation and execution of destination
management plans. The adaptability of countries and regions to the new sustainability
standards will define the success of their strategies.
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This report has argued in favor of the “localization” of tourism policy in Lebanon, as the
country has all the necessary human, natural, cultural resources to diversify its touristic
product and upgrade its status as a global destination, outside its Beirut-centered
model. To this end, the Ministry of Tourism is the key administrative entity that needs to
upgrade its regulatory, policy-making and service delivery capacity by decentralising its
daily operations to municipalities and regions and by introducing new structures,
methods and mechanisms that serve efficiency, transparency, participation,
cooperation, openness and good governance.
In the context of the country’s new development strategy, Lebanon could set a national
goal to become a role model for sustainability tourism by 2030. Such an ambitious goal
will mobilise governance entities, business and civil society as well as international
organizations to work together and introduce values, methods and policies that can
transform the quality of Lebanese policies horizontally.
The endorsement of Sustainable Development Goals and the setting of policy priorities
by a coordinating Ministry (OMSAR) can encourage actions to improve the monitoring of
tourism impacts, extend certification schemes, encourage the use of new technologies
and green finance instruments, and generally promote environmentally sustainable and
socially inclusive tourism growth.
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