Lebanon must address its own health if it promotes health tourism


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I still can’t get over the tourism minister Michel Pharaon’s suggestion that Lebanon’s tourism future lies in convincing sick Arabs to get treatment in Lebanese hospitals then presumably recuperate at their leisure, availing themselves of all the country has to offer.

OK, so the idea of medical tourism is nothing new. It has been touted a lot over the past 15 years as part of what successive ministers have cheerfully referred to as niche sectors, along with religious, heritage, eco, food, winter sports and wine tourism. It makes bundles of sense on paper; Lebanon is after all a niche country, so it has been easy to argue that this is the way forward rather than birds, beach and booze-athon horrors found across the water in Cyprus’s mass tourism.

But it’s all talk. The state has done nothing to advance Lebanese tourism, relying instead on the private sector’s innovation. There has been no strategy and no long-term plan, while any initiatives, such as press trips or roadshows, are conducted in isolation. Imagine an orchestra in which each section plays its own tune and you begin to get a picture of how Lebanon tries to make money from foreign visitors.

I am not saying that Mr Pharaon is wrong when he talks of the potential for selling Lebanon as a hub for rhinoplasty and liposuction – eastern Europe has been cut-price nipping and tucking and implanting for years, so it’s a tried and tested model – but it must be sold as one part of a grand plan, especially as the world has moved on.

The post-September 11 paranoia, which Lebanon very famously milked, has all been lapped up. Not only does GCC investment own great swaths of the major world capitals, it is also rather twitchy about Lebanon, where there exists the real threat of kidnapping or worse, a result of the region’s perceived support for the Syrian opposition.

So we are in a bit of a pickle. It is not enough for the tourism ministry, and by extension the government, to simply go through the motions and throw out hackneyed ideas to an industry that was the backbone of the country’s brief revival between 2008 and 2010 and which would really appreciate constructive leadership and support.

If the ministry really wants to help, it should do its job. It should ensure that all businesses that fall under the tourism umbrella are properly regulated in terms of sanitation, pricing, quality and training, and that it issues an official stamp of assurance to businesses that tick all the boxes. This would in turn encourage others to improve standards.

Furthermore, if we sell ourselves as a boutique destination – and we really can develop niche sectors that offer a lot more than shisha cafes and shopping – and justify the slightly higher price point that comes with it, industry professionals should be properly trained. Thankfully there is no shortage of multilingual human talent, but it needs to be cutting edge to serve a more affluent and informed tourist.

The ministry should also lobby the environment ministry and perhaps gently suggest that it also does its job. The modern long-haul traveller – apparently defined by those who take flights longer than three hours – is very demanding and will be unlikely to share our free and easy attitude to rubbish and our love affair with unfinished concrete buildings.

And while we are on the subject, let’s finally admit that Lebanon is not a beautiful country. It was, and anyone with any imagination can see what could have been. We can’t undo the past, but we can, just about, work with what we have. We need to tear down the eyesores, especially the billboards, fix the roads, improve our driving, ban half-built houses, paint the concrete and pick up the litter.

The Qadisha Valley, which is just hanging on to its Unesco heritage site status, is awash with rubbish and empty shotgun cartridges. Baalbek, Sidon, Byblos and Tyre are similarly unimpressive, when they should be stunning and unique.

Medical tourism? Physician, heal thyself.

Michael Karam is a freelance writer based in Beirut

Follow us on Twitter @Ind_Insights

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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New UK refugee system

 

  • A new “core protection” for refugees moving from permanent to a more basic, temporary protection
  • Shortened leave to remain - refugees will receive 30 months instead of five years
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