Walid Nassar, Lebanese Minister of Tourism, centre, attends a ministerial discussion at the Arabian Travel Market in Dubai. Pawan Singh / The National
Walid Nassar, Lebanese Minister of Tourism, centre, attends a ministerial discussion at the Arabian Travel Market in Dubai. Pawan Singh / The National
Walid Nassar, Lebanese Minister of Tourism, centre, attends a ministerial discussion at the Arabian Travel Market in Dubai. Pawan Singh / The National
Walid Nassar, Lebanese Minister of Tourism, centre, attends a ministerial discussion at the Arabian Travel Market in Dubai. Pawan Singh / The National

Lebanon to get $9bn cash boost from 2.2 million visitors in 2023, minister says


Deena Kamel
  • English
  • Arabic

Lebanon expects to host 2.2 million tourists and earn about $9 billion in much-needed tourism revenue this year as it grapples with ongoing political deadlock and its worst economic crisis since independence.

This is slightly up from the 1.7 million visitors the Arab country hosted in 2022, when it received a similar $9 billion in cash flow from tourism, Walid Nassar, Lebanon's Minister of Tourism, told reporters on the sidelines of the Arabian Travel Market in Dubai.

Of the 2.2 million expected visitors, 75 per cent are expected to be Lebanese that live abroad who will return home for the holidays and the remaining 25 per cent foreigners mainly from Egypt, Jordan, Iraq and Kuwait, he said.

The projected tourist numbers stand far below the pre-Covid level of seven million visitors in 2019, he said.

“You can expect a really hot summer in terms of tourism in Lebanon,” the minister told a panel at the annual travel event.

Lebanon's economic and financial crises have been exacerbated by a political impasse that has blocked the formation of a new government and the enactment of reforms required to unlock billions of dollars in aid from the International Monetary Fund and other international donors.

Asked how the crisis-hit country will attract a little more than two million tourists this year, the minister said that the Lebanese pound's devaluation has made services and accommodation cheaper for international tourists spending hard currency.

Lebanon's central bank devalued the pound in early February, with the official exchange rate changing to 15,000 to the US dollar, compared with the peg in place since 1997 of 1,507.50 to the greenback.

This led to a surge in consumer prices in March and the Lebanese pound trading in the parallel market at as much as 140,000 to the dollar earlier this month.

Inflation in Lebanon hit an annual rate of about 264 per cent in March.

Warming diplomatic relations between Saudi Arabia and Iran will also have a positive impact on Lebanon's tourism performance, the minister said.

The Riyadh-Tehran detente is expected to have “positive repercussions on the whole region and in Lebanon in particular”, Iranian Foreign Minister Hossein Amirabdollahian said last month.

“Any rapprochement between any two Arab countries will affect positively Lebanon because we are part of this area … we are acting to improve this relationship between Lebanon, GCC [Gulf Co-operation Council countries] and Saudi Arabia,” Mr Nasser said.

Eco-tourism, religious tourism and rural getaways in the mountains are also attracting different types of travellers to the country, Mr Nassar said.

  • Egypt has opened its archaeological sites and museums for free visits to mark World Tourism Day. EPA
    Egypt has opened its archaeological sites and museums for free visits to mark World Tourism Day. EPA
  • The promotion also marks 200 years of research into ancient Egypt. EPA
    The promotion also marks 200 years of research into ancient Egypt. EPA
  • The UN World Tourism Organisation has celebrated World Tourism Day since 1980. EPA
    The UN World Tourism Organisation has celebrated World Tourism Day since 1980. EPA
  • This year's theme is Rethinking Tourism. AP
    This year's theme is Rethinking Tourism. AP
  • The aim of the event, organisers say, is to put people at the centre of important discussions on where tourism is going. EPA
    The aim of the event, organisers say, is to put people at the centre of important discussions on where tourism is going. EPA
  • 'Tourism is one of the world's most important economic sectors,' the UN says. EPA
    'Tourism is one of the world's most important economic sectors,' the UN says. EPA
  • The UN said tourism 'employs one in every 10 people on Earth and provides livelihoods to hundreds of millions more'. EPA
    The UN said tourism 'employs one in every 10 people on Earth and provides livelihoods to hundreds of millions more'. EPA
  • For some countries, tourism can represent more than 20 per cent of their GDP. Reuters
    For some countries, tourism can represent more than 20 per cent of their GDP. Reuters
  • Lebanon is allowing people to visit the National Museum for free. EPA
    Lebanon is allowing people to visit the National Museum for free. EPA
  • The National Museum in Beirut is the country's principal museum of archaeology. EPA
    The National Museum in Beirut is the country's principal museum of archaeology. EPA
  • People will be able to enjoy the museum, which was officially opened in 1942. EPA
    People will be able to enjoy the museum, which was officially opened in 1942. EPA

“We were surprised last year, after the port explosion and the Covid-19 pandemic, by the number of people that came to visit Lebanon,” Mr Nassar said.

The tourism ministry and the private sector will organise more than 80 events over the summer months to attract more visitors, he said.

“Lebanon has spectacular tourism offerings. Despite its economic crisis, it is rich in its attractions,” Mr Nassar said.

“Tourism is the backbone of the national economy.”

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

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Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.

“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.

“They were living in perpetual mystery as to how their futures would pan out, and what that would be.

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