APPLE-C, Infrastructure, Economic Update, Transport

Aviation Sector: Advocating for a Competition and Resilience

15:36 | 30 November 2024LIMS output
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Sector

Lebanon’s tourism sector has faced significant challenges over the years. However, even during periods of relative stability, such as 2022-2023, or the period prior to 2019, Lebanon failed to compete with regional destinations, attracting only 2% of the Middle East and North Africa’s total tourists. Additionally, it has the region’s lowest hotel occupancy rates and ranked 100th globally in the 2019 Travel and Tourism Competitiveness Index. Structural issues, including the monopoly granted to Middle East Airlines (MEA), hinder the growth of Lebanon’s tourism sector by driving up ticket prices, reducing the number of visitors, and curbing economic opportunities.

In response, LIMS released a policy brief advocating for an end to MEA’s exclusivity, which has been extended until 2026. This monopoly enables MEA to impose duopolies on various routes. For example, travel to Germany is restricted to flights offered exclusively by MEA and Lufthansa, limiting competition and keeping airfare high. The same applies for all other destinations. LIMS advocated for opening Lebanon’s skies to competition. Allowing both foreign and local private airlines to operate alongside MEA. This competition would lead to lower airfares, making Lebanon more attractive to tourists, boosting hotel occupancy, and creating jobs in tourism-related sectors. Furthermore, fostering competition would encourage growth in airports, maintenance services, and related industries, generating new job opportunities and increased tax revenue.

In light of the conflict, Lebanon’s reliance on one single airline, Middle East Airlines (MEA), raises critical concerns about the country’s resilience in times of crisis. What if MEA were to be targeted or grounded during the war? This scenario highlighted the need for diversification in Lebanon’s aviation sector. A monopoly on air travel not only limits options but also poses risks to national security and economic stability. Opening the sector to competition would ease the burden of MEA, promote national security by diversifying risks, and enhance the country’s long-term economic growth and resilience.

  • LIMSLB Exclusive: The Need to Cancel the “Middle East Airlines” Monopoly to Diversify Risks During Wartime and Boost Tourism in Peacetime. November 7, 2024: LIMS Exclusive, Article (AR)
  • Amid Threats of War Expansion… Intense Israeli Airstrikes. November 8, 2024: Al-Akhbar TV, Video Interview (AR)
  • The Middle East Airlines Monopoly Conflicts with the Laws and Negatively Affects Travel to Lebanon. November 13, 2024: VDL, Video Interview (AR)