Lebanon's trade deficit down by 6.1 pct in Jan-April

BEIRUT (Xinhua) -- Lebanon's trade deficit narrowed by 6.1 percent to 5.3 billion U.S. dollars in the first four months of 2018 compared to the same period in 2017. Lebanon's Byblos Bank, which released the figures from the Higher Customs Council, attributed the drop in deficit to the year-on-year decrease of 240 million dollars in imports and an increase of 105.2 million dollars in exports. The figures released by the council show that the total value of imports reached 6.4 billion dollars in the first four months of 2018, constituting a decline of 3.6 percent from 6.6 billion dollars in the same period of 2017; while the aggregate value of exports increased by 10.9 percent year-on-year to 1.1 billion dollars in the covered period.

Nassib Ghobril, chief economist and head of the Economic Research and Analysis Department at Byblos Bank, said the import of food and cars decreased the most during this period by 8 percent and 9 percent respectively due to a drop in the purchasing power of people. "The purchasing power of people has weakened following the government's increase in the Value Added Tax (VAT) from 10 percent to 11 percent in addition to a high inflation rate of 6 percent," he told Xinhua News Agency. Ghobril said that the best way to reduce imports in Lebanon is through cutting down the operating costs for manufacturers which will boost local production and improve its competitiveness. "People will then consume more local products while we will be able to export more of our produce," he noted. Byblos Bank's report said that China was the main source of imports with 697.2 million dollars or 10.9 percent of the total in the first four months of 2018, followed by Italy with 548 million dollars (8.6 percent), Greece with 492.7 million dollars (7.7 percent), Germany with 387.4 million dollars (6.1 percent), the United States with 351.2 million dollars (5.5 percent) and Egypt with 231.2 million dollars (3.6 percent). It added that imported goods from China grew by 21.7 percent year-on-year in the covered period and those from Italy rose by 15.4 percent. On the other hand, it noted, imported goods from the United States dropped by 33.1 percent, those from Egypt decreased by 5.1 percent while imports from Greece declined by 4 percent and those from Germany by 1.4 percent year-on-year in the first four months of 2018.

As for exports, the report suggests that they grew by 56.5 percent to Turkey in the first four months of 2018 and exports to the United Arab Emirates (UAE) increased by 52.2 percent. In contrast, exported goods to Syria dropped by 46.1 percent while those to Saudi Arabia declined by 15.1 percent, exports to South Africa decreased by 14.3 percent and those to Iraq dropped by 7.5 percent year on year in the covered period. Adnan Rammal, member of Beirut Merchants' Association, attributed the decrease in exports to Syria to the drop in consumption of products by the Syrian population caused by their weakened purchasing power. "Also, a big number of Syrians fled the country following the war," he said. Rammal added that the UAE imports high value products from Lebanon such as Jewelries and designers' clothes. "Any change in the value of these products will cause a major change in exports," he said. KEY WORDS:Lebanon

Casino du Liban expects $10M in profit in 2018: Casino president Khoury

by Rabih K. -- lebaneseexaminer.com --Casino du Liban president Roland Khoury projected the net profits for the establishment to be over $10 million for the fiscal year of 2018. In 2017, the casino rebounded after Khoury took over with a $3 million profit after years of experiencing losses, the Daily Star reports. The casino is majority owned by the government through the Intra Investment Company and is managed by London Clubs International, a subsidiary of Caesars Entertainment Corporation. As a result, the establishment pays lots of taxes on most of their games inside. Khoury said “We pay nearly $40 million in taxes on the slot machines.” He called on tax reform in the country so that the casino will be able to better compete with casinos in Cyprus and around the world. Despite his grievances, many analysts have noted that the expected revenue for 2018 is promising given the small size of Lebanon’s population and where a significant percentage of people do not gamble.

International Community 'Dismayed' at Lebanese Allegations on Syrian Refugees

BEIRUT (REUTERS) - THE international community is "dismayed by repeated false accusations" that it is working to settle Syrian refugees in Lebanon, Germany's ambassador in Beirut said on Thursday. As Syria's army and allied forces retake more territory, officials have stepped up calls for some of the more than a million refugees registered in Lebanon to go back to parts of Syria where violence has died down, before a deal is reached to end the war. But the international view is that it is not yet safe to return, and Lebanese caretaker foreign minister Gebran Bassil has accused the U.N. refugee agency, UNHCR, and foreign countries of preventing Syrians returning home. Martin Huth, the German envoy, told Reuters in an emailed statement that the international community was "fully aware of the heavy burden Lebanon is bearing". "Many of us are doing all we can to alleviate the situation," Huth said, citing aid and commitments made to Lebanon through donor conferences and U.N. agencies. He said the international community and the United Nations were "fully committed to an eventual return of refugees to Syria". "At the same time, and while we do not oppose voluntary returns to Syria, conditions in that country, in our view, do not allow for a general and comprehensive return of refugees at this time," he added. In May, Lebanese President Michel Aoun said U.N. and EU comments pointed to "a disguised settlement (of refugees in Lebanon) that contradicts our constitution and sovereignty".

"DIGNIFIED AND SAFE RETURN"

UNHCR has denied trying to stop Syrians going home, saying it supports return when it is safe, and helps to provide documents for those who do choose to go back. "The policy should be allowing, if not encouraging, the dignified and safe return," Bassil said in Geneva on Thursday after meeting UNHCR High Commissioner Filippo Grandi. "I am talking of the category of Syrians who want, willingly, voluntarily, to go back," Bassil told Reuters. "This is the first phase of return." Bassil, Aoun's son-in-law, has frozen applications for residency permits from UNHCR staff in Lebanon. He described the meeting with Grandi as positive but said he was waiting for a "more practical" UNHCR policy on returns. He said he did not intend to stop working with the agency, but added: "If the policy will stay the same, yes, we will take more measures." The multi-sided, seven-year war has killed hundreds of thousands of people and forced more than 11 million Syrians out of their homes, including nearly 6 million who fled abroad in one of the worst refugee crises of modern times. Aoun told ambassadors on Thursday that "a return has become possible in stages to areas that have become safe and stable in Syria, which are five times the size of Lebanon". One concern for people who want to return is whether they will be conscripted into the military.

Lebanon's Shi'ite Hezbollah said on Thursday it stood "fully ready to cooperate positively to speed up" the issue of returns. The heavily armed Iranian-backed movement has sent thousands of fighters to help the Syrian state claw back control of major cities from rebels and militants. "The return of displaced Syrians to their country, in a voluntary and safe way, requires a responsible approach and we have started to sense promising signs," its parliamentary bloc said in a televised statement. (Reporting By Angus McDowall and Ellen Francis in Beirut and Tom Miles in Geneva; Editing by Kevin Liffey)

Hariri Asks Putin to Help in Returning Refugees to Syria

by AFP -- Prime Minister-designate Saad Hariri held talks Wednesday at the Kremlin with Russian President Vladimir Putin. “The one-hour meeting tackled the various developments in Lebanon and the region and the ties between the two countries,” Hariri's office said. The meeting was also attended by Russian Foreign Minister Sergei Lavrov. Putin, for his part, said: “We must continue to enhance commercial exchange between the two countries, especially that there is an inadequacy in this regard, so we must exert efforts to strengthen exchange.” “We must also intensify the works of the joint governmental committee, and in the framework of this committee, there are Russian firms that are working actively and there are intensified efforts in other fields,” Putin added. Hariri acknowledged that the Lebanese-Russian economic ties are below the required level while citing “some progress.” “We will achieve a bigger progress, especially with the new government,” he added. Speaking to reporters after the meeting, the PM-designate said he and the Russian leader extensively discussed the issue of Syrian refugees, their return to Syria and whether Russia can help in this regard.

Hariri's meeting with Putin comes on the eve of the FIFA World Cup that Russia is hosting. Hariri will attend the football tournament's inaugural match on Thursday, pitting Russia against his longtime backer, Saudi Arabia. Riyadh has been a key ally of Hariri for years, but the relationship appeared to falter in late 2017 when Hariri announced his surprise resignation during a trip to the kingdom. He subsequently rescinded the decision and in May was appointed for a new term as prime minister following parliamentary elections. He is now in talks to form a coalition government. Hariri, 48, had met Putin in the Russian Black Sea resort of Sochi in September 2017. SourceAgence France Presse

U.S. delivers last 4 A-29 aircraft to Lebanon

BEIRUT, June 13 (Xinhua) -- The United States has delivered the last four A-29 Super Tucano aircraft to the Lebanese army, the U.S. Embassy in Lebanon said Wednesday. The delivery took place during a ceremony on Tuesday at Hamat Air Base in Lebanon's northern city of Batroun, in the presence of Lebanese army chief Joseph Aoun and U.S. Ambassador to Lebanon Elizabeth Richard. In his speech, Aoun hailed the four new aircraft as a bolster to Lebanese army's combat capability. The delivery "endorses the U.S. constant support for the Lebanese army in the fight against terrorism," as well as its "commitment and eagerness to preserve the stability of Lebanon," he said. For her part, Richard described the delivery as "a game-changing acquisition that takes the Lebanese Armed Forces to the next level of combat capability." The A-29 will allow the Lebanese army to conduct combined arms maneuvers in all conditions and greatly reduce the risk of collateral damage and the danger to civilians, she said. The four A-29 Super Tucano aircraft are the last of the six the U.S. has delivered in its latest military aid package to Lebanon. The first two were delivered in October 2017. Over the last decade, the United States has invested more than 1.5 billion dollars in training and equipping over 32,000 Lebanese troops.

Lebanon's tourism suffers from lack of gulf visitors

BEIRUT, (Xinhua) -- Tourism activity is low in Lebanese capital Beirut due to the absence of Gulf visitors, said Pierre Ashkar, president of the Syndicate of Hotel Owners in Lebanon Tuesday. Ashkar added that only 10 percent increase from the prior year is witnessed in hotel reservations for the coming three-day holiday Eid al-Fitr, marking the end of Ramadan, Muslim's holy month of fasting. Last November, Saudi Arabia, the United Arab Emirates, Bahrain and Kuwait warned their citizens against traveling to Lebanon due to a Lebanese-Saudi crisis caused by Lebanese Prime Minister Saad Hariri's controversial resignation in Riyadh which he rescinded soon after. Ashkar said that tourism activity will improve only when tourists from the Gulf return to Lebanon. "Gulf tourists used to make up 60 percent of total visitors to Lebanon," he said. "Now they constitute 4 percent only." Ashkar noted that Gulf tourists are the ones who spend money the most in Lebanon compared to other nationalities. "They also stay for long periods unlike tourists with other nationalities who come for only two or three days," he added. Ashkar added that Gulf tourists' return to Lebanon depends on the country's government formation. Lebanon succeeded in holding the first parliamentary elections in nine years but it still faces the challenge of overcoming all hurdles that may hinder cabinet formation. "Gulf authorities will assess the situation following the government formation to decide whether to allow their nationals to visit Lebanon or not," he said.

Representatives of hotels also told Xinhua that demand from Gulf nationals for Beirut's hotels is very shy and the tourism activity is low for Eid al-Fitr. "Reservations at Beirut's big hotels do not surpass 70 percent for this period," said Ayman Nasser el-Dine, operations manager at Beirut's Hotel Cavalier. Nasser el-Dine said his hotel did not witness any increase in demand for this year's Eid al-Fitr compared to the same period last year. He noted that Gulf tourists are absent. "Gulf tourists prefer to come to Lebanon by land using their cars but the Syrian conflict prevents them from doing so nowadays," he said. "In my opinion, most of these people prefer to go to Turkey for vacation instead of coming to Lebanon for the time being," he added. Nasser El Dine said that reservations at his hotel for Eid al-Fitr this year is made by Syrians mostly, and Europeans. Likewise, Rita Saad, director of marketing at Le Grey hotel, said most of the demand at her hotel comes from Europeans.

A recent study by Lebanon's Blominvest Bank stated that the total number of tourists in Lebanon rose by 5 percent in the first quarter of 2018 compared to the same period last year. The increase, it said, is due to the yearly growths recorded in tourist arrivals from Europe and America which together comprised 49.56 percent. Saad said that demand for rooms at le Grey for Eid al-Fitr stands at 87 percent this year, which is slightly higher than last year due to positive vibes stemmed from parliamentary elections. "We have some demand by Kuwaitis and Emiratis but not Saudis," she said. Meanwhile, Mohamad Faraj, operations manager at White House furnished apartment for tourists, reported a very low reservations rate of 10 percent. "The small demand we have is by Iraqis who come for medical purposes but we have not seen any people from the Gulf since 2007," he said.