Tourism Sector in Lebanon Policy Recommendations

Technical Assistance to the Administrative Simplification in selected ministries in Lebanon (Ministries of Social Affairs, Tourism, Public Health and Industry)

TOURISM SECTOR IN LEBANON POLICY RECOMMENDATIONS

Author: PANAGIOTIS VLACHOS

Financed by: EU General Budget Service Contract ENPI 2014/348-279

JULY 2018

CONTENTS

1. Tourism in Lebanon a. Overview b. Opportunities and Challenges c. Policy Initiatives

2. Ministry of Tourism & Administrative Environment a. Administrative Environment b. Control vs. Problem Solving

3. Policy Recommendations. Promoting Tourism in Lebanon a. Preconditions b. Organization c. Set Supply & Demand Criteria d. Intelligence e. Portfolio of Tourist Products f. Engage, Debate & Market g. Directions & Good Practices

4. Epilogue. Creating a Paradigm for Sustainable Tourism

5. References

Summary

This analysis provides recommendations for Lebanon’s tourism policy in the context of the technical assistance to administrative simplification in the Ministry of Tourism (MOT). In Chapter 1 we provide data on Lebanon’s performance in tourism and we pose a series of challenges for the future. In Chapter 2, we focus on the administrative side, in an effort to identify the problematic administrative procedures in the Ministry of Tourism that become burdensome for citizens and businesses and to create a more efficient regulatory, decision-making and service delivery environment. Chapter 3 is dedicated to a a series of policy recommendations and initiatives that can promote national and local tourism in a competitive global market. Finally, we refer to a number of methods that can assist the country to drafting a more efficient and outward looking national plan for sustainable tourism. We conclude that an integrated, targeted and inclusive tourism policy in Lebanon is feasible given a more efficient, simplified and strategic administrative structure. In order to play a decisive role in the shaping of the country’s sustainable tourism model, the Ministry needs to stop dedicating all its energy on everyday operational activities as licencing and circulating documents, to save time, money and human resources, deconcentrate its self-consuming functions and focus on its main mission/core business: design, regulate and execute policies in a more open, transparent, efficient and sustainable policy framework.

1. Tourism in Lebanon

a. Overview

Security and political challenges continue to be Lebanon’s primary concern. Additionally, unsustainable debt ratios and sizable twin deficits demonstrate a frail macrofinancial framework that exposes the country to significant foreign exchange and refinancing risks, according to the World Bank1. International organizations and experts encourage Lebanon to proceed with bold administrative reforms in order to address acute social problems and modernise its business environment.

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

Another aspect of tourism in Lebanon is its Beirut-centered activity. Almost 80% of visitors’ expenditure has been registered in Beirut and 19% at Mount Lebanon, as the capital with its infamous nightlife, shopping malls, medical services and cultural events attracts the majority of travelers and it has positioned itself as a top destination for many international and Arab visitors. Leisure spending attracts the lion’s share against business spending (95% to 5%), based mostly on foreign spending (86.2%) against domestic spending (13.8%). Tourism is depended on hotels, shopping and luxury products (watches, jewelry, clothes), food and beverage establishments, although there has been an effort to diversify to rural tourism and other forms of alternative travelers’ experience.

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 6

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

directions and good practices that could pave a path for a more prosperous and innovative tourism policy in the future.

C. Policy Initiatives

Tourism is a growing economic sector at a global scale. According to the OECD7, international tourist arrivals grew to over 1.2 billion in 2016. Much of its success depends on the ability of the countries to adapt to current and upcoming social, economic, environmental, security and technological challenges. In other words, countries and international organizations need to focus more on the development of tourism governance and incorporate it within their development strategies.

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.

7 OECD - Tourism Trends and Policies in 2018 8

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 Lebanese Ministry of Tourism is entitled to carry the following missions: ● Promoting tourism ● Regulating, coordinating, and monitoring tourism professions; ● Regulating, coordinating, and monitoring private companies and associations working in the tourism sector; ● Promoting and executing tourism investment projects; facilitating and simplifying rules and requirements related to these projects; and applying laws and regulations related to tourism and tourism enterprises; ● Developing archaeological and historical sites and museums for tourism purposes.

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.

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:

- there is lack of policies and procedures to regulate the functioning of some services like for example the Service of Exploitation and the Heads of the departments are working in a regulatory vacuum. Employees are waiting for decrees that will cover their scope of work. - The actual mandate of the newly created 4 inspection departments has not yet been defined creating confusion regarding the roles and responsibilities of the new inspectors and overlap with the control functions already existing in the Directorate for Touristic Structures. - The role of the Department of Receptions and Information regarding the escorting of delegations needs some review and a better definition. - The role of the Department of Accounting needs to be better defined particularly for the part regarding the review of the “salary scale”. It would be inappropriate if it would concern the salaries of the MOT employees. - The classification of hotels in most countries is responsibility of sector associations or private organisations (national or international). The role of the State in this context can lead to political interference in the affairs of the private sector. - The Department of Travel Agencies and Tourist Guides is in charge of licensing the touristic agencies and the touristic guides. The Ministerial licence to operate as a touristic guide may appear as a protectionist tool for a specific category of workers for which there is need of liberalisation. The licensing of travel agencies is also part of the duties of this department. The mission of this department needs to be reconsidered and along with it even the very existence of the department. - The mandate of the Department of Technical Studies may overlap with the responsibilities of similar bodies placed in other ministries 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.

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

- 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.

- 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. b. Control vs. Problem Solving

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

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.

In addition to the horizontal solutions (reduction of unnecessary steps, the delegation of decision making authority, introduction of interoperable ICT systems, re-organization of administrative structures, introduction of regulations, re-engineering of procedures), the project has proposed the following paths for the Ministry of Tourism:

● Implementation of ongoing simplification initiatives regarding tourism establishment licensing (amendment of decree 4221) ● Standardization of festival licensing procedures ● Introduction of official application forms ● Registration in Diwan ● Delegation of decision making authority according to weighed criteria ● Leaner process for management of complaints and financial reporting (elimination of 10 steps on average)

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.

3. Policy Recommendations. Promoting Tourism in Lebanon.

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

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.

Tourism in Lebanon requires synergies and horizontal interventions, as shown above. A sole strategy for the tourism sector will probably lack the sustainability element if it remains isolated from essential macro and micro policies both at the local and the national level alike. The Rural Tourism strategy has integrated sustainability criteria and is based on an inclusive approach, however it constitutes only a part of the needed holistic approach.

Consequently, a set of preconditions that need to be satisfied in order to kickstart a new approach on tourism in Lebanon are the following:

● 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

● 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

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)

c. Set Supply and Demand Criteria

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,

assisted by business associations and other stakeholders. Data sets of the following categories is required:

● Analysis of geographical characteristics, monuments, cultural and natural resources and monuments ● Analysis of available infrastructure in health and transportation ● Technological capacity, innovation & specialization ● Demographics ● Environmental status ● Macroeconomic targets and status ● Profile of Labour Market ● Profile of tourist visitors (nationality, consumption, gastronomy preferences, technological literacy, duration of stay) ● Basic Characteristics of existing tourist services (classification of hotels, Airbnb etc) ● Main Competitors (countries, regions) ● Gastronomy & nightlife

In order to achieve the best possible profile of the region/municipality/country, one should evaluate it according to the existing tourism sectors and categories, including Sea & Sun, City Break, Religion & Culture, Cruise & Yachting, Conference, Health/Medical, Gastronomy, Marine, Sports, Wellness etc.

d. Portfolio of Tourist Products

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.

● Define the components of a country, city or region tourist product (e.g. archaeological sites, luxury hotels, romantic sunsets, local gastronomy) ● Define the products and their sub-products (e.g. Road Trip in Lebanon) ● Describe the experience ● Name the destinations ● Enlist the unique characteristics of the country, region etc ● Correlate the products with target groups & age subgroups (e.g. Germans, age 44-60 y.o. etc)

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).

e. Engage, Debate & Market

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:

● An “ask the visitors” survey (cleanliness, accommodation quality, food/drink, customer service, location, quality-cost Correlation) ● An “ask the providers” survey, including business associations, syndicates and chambers, tour operators ● Deliberation cycles in order to collect data, information, complaints, existing problems and possible solutions at the local level, with the participation of Central Administration & Ministries, Business Associations, Syndicates & Chambers, Mohafazat, Religious Orders Governorates & Municipalities, Transportation Authorities, Cultural Authorities, Think Tanks & Academia, Sports Associations, Clubs, Hotels, Accommodators, Gastronomy, Tour Operators etc. ● Regional and Local DMOs to work under common standards (tourist calendar, marketing plans, standardization of local guides, sustainability criteria, road signage, public transportation, certification of lodging ● Develop an online portal that allows citizens and stakeholders to

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

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.

Branding a place, a city, a region or a neighborhood is no longer a bureaucratic process designed and executed by a closed circle of governmental officials or sporadic and inconsistent promotional campaigns. Arguably, it requires a long and comprehensive consultation with social and economic stakeholders and the mobilisation of citizens, residents and visitors, who add to the physiognomy of the place through their activity and their expectations. Hence, the introduction of a local, regional or national marketing plan includes the brand essence, the positioning statement, the brand personality, the emotional benefits and the rational attributes, the reason why to visit a place. And no marketing plan is feasible without the strategic and consistent use of digital engagement tools that generate and disseminate content on the web, the social media, PR actions and events, B2C storytelling and B2B tourism exhibitions etc.

f. Directions and Good Practices

9 See video at: https://www.youtube.com/watch?v=F8y4gBz4bR0 19

National and Local Quality Agreements introduce a holistic quality approach throughout the supply chain of touristic products and services. It requires:

● Mutual Commitment on universal standards (food, accommodation, costs, use of public amenities, advertising, accessibility) ● Agreement on a certain number of promoted activities (festivals) ● Destination Management Organization ● Monitoring and Assessment Committee ● Interministerial & Interregional Cooperation ● Network between local businesses (gastronomy, wine, construction, decoration etc) & services providers (hotels, rooms, restaurants) ● Branding, Available Information Material & Points of Contact

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.

● A Local Quality Contract aims at creating a quality network of all businesses in the region ● The visitor experience is enriched and their journey facilitated by digital applications that inform them about monuments, museums, hotels, restaurants, means of transport, cultural events, public services, etc. ● The history of each monument and region is told in an appealing way for all audiences and ages. Specialists in the field compose these narrations. ● Local authorities are mobilized around each cultural route to improve road signs and organize relevant coordination of the services concerned, thus ensuring safe travel for visitors throughout the region of the route.

Sustainable Cultural Festivals is a necessity for Lebanon and they can survive without being dependent financially on the state, as follows:

● The Ministry of Culture, a Region, a Municipality or a Union of Municipalities sign an agreement to create a new legal entity, e.g. “Athens Festival” ● Executive Director, Cultural Director & Board of Trustees (Foundations, State Representatives, Artists etc) are appointed and selected through an open call. ● Business Plan & Marketing Plan (Brand, Promotion, Targeting)

● 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

4. Epilogue. Creating a Paradigm for Sustainable Tourism

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.

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.

Sustainable tourism is fundamentally targeted at ensuring effective management of all resources by meeting the economic, social, and aesthetic needs of tourists while maintaining cultural integrity, essential ecological processes, biological diversity, and life support systems for the host communities. Lebanon has successfully prepared a Rural Tourism Strategy that satisfies much of these criteria, but it remains to be seen whether its success will be sporadic or halted by administrative burdens, deficits in intersectoral cooperation or general political and security developments.

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.