Tourist arrivals increase by a yearly 10.9% in the first eleven months of 2017 The number of tourist arrivals to Lebanon reached 1,714,812 in the first eleven months of 2017. The number of tourists visiting Lebanon reached 1,714,812 in the first eleven months of 2017, indicating a yearly 10.9% increase from 1,546,820 tourist arrivals reported during the same period of 2016. In terms of country of origin, the number of tourist arrivals from European countries witnessed the highest year-on-year increase of 13.6% in the first eleven months of 2017 reaching a total of 588,706 arrivals. It was followed by the number of tourists from American countries which rose by a yearly 11.1% to reach 301,604 tourists. Moreover, the number of tourists from both, Oceana and Asia, increased by a yearly 10.7% and 10.3% respectively and recorded a total of 74,750 and 125,097, respectively. As for Arab tourists, they increased by a yearly 9% in the first eleven months of 2017 to reach 523,930. In terms of country of origin, the number of tourist arrivals from European countries witnessed the highest year-on-year increase of 13.6% in the first eleven months of 2017 reaching 588,706. Source: Ministry of Tourism, Bankmed Research Source: Ministry of Tourism, Bankmed Research 1
The average rate per room at Beirut hotels reaches USD 154 in the first ten months of 2017, up by a yearly 8.3% Hotel occupancy rate in Beirut stood at 65.8% in the first ten months of 2017, up from 58.5% reported during the same period in 2016 and higher than the MENA average of 61.9%. Revenues per available hotel room in Beirut were recorded at USD 101 in the first ten months of 2017, increasing by a yearly 21.6%. An analysis of the hotel sector performance for the first ten months of 2017 released by Ernst & Young's benchmark survey indicated that hotel occupancy rate in Beirut stood at 65.8% in the first ten months of 2017, up from 58.5% over the same period in 2016 and higher than the MENA average of 61.9%. The highest hotel occupancy rate was witnessed in Dubai at 76.2%, followed by Abu Dhabi and Ras Al-Khaimah by 75.7% and 73.1%, respectively. Hotels in Kuwait City, on the other hand, witnessed the lowest occupancy rate of 48% during the first ten months of 2017. As for the average rate per room at Beirut hotels, it witnessed a yearly 8.3% increase in first ten months of 2017 to reach USD 154 standing below the regional average rate per room of USD 186.9, which slightly declined by 3.3% from the same period last year. Moreover, Cairo, Abu Dhabi, and Amman witnessed the least expensive average rate per room within the region at an average of USD 85, USD 113, and USD 145, respectively. During the first ten months of 2017, Makkah posted the highest average rate per room in the region at USD 311. Furthermore, the revenues per available hotel room in Beirut were recorded at USD 101 during the first ten months of 2017, up from USD 83 reported during the same period in 2016, thereby increasing by a yearly 21.6% and posting the second highest increase in the region behind Cairo which witnessed a 95% increase in its revenues per average room. Regionally, Jeddah reported the highest revenues per available hotel room which stood at USD 185. Source: EY, Bankmed Research Bankmed - Market & Economic Research Division 2
Source: EY, Bankmed Research As for Beirut Hotel s Performance for October 2017, occupancy rates were slightly lower on a monthly basis at 68.3% from 74.1% recorded in September 2017. Moreover, revenues per available room were recorded at USD 101 in October 2017 down from USD 111 recorded in September 2017. In October 2017 alone, occupancy rates were slightly lower on a monthly basis at 68.3% from 74.1% recorded in September 2017. Source: EY, Bankmed Research Bankmed - Market & Economic Research Division 3
Consumer Price Index increases by a yearly 4.79% in November 2017 The prices of clothing and footwear recorded the largest y-o-y increase of 16.71% in November 2017. On a month-on-month basis, inflation recorded a 0.55% increase in November 2017 from October 2017, with clothing and footwear prices recording the highest monthly increase of 3.02%. Inflation recorded a yearly rate of 4.79% in November 2017 from November 2016 as indicated by the Central Administration of Statistics Consumer Price Index (CPI). The largest yearly increase in inflation by category was registered by clothing and footwear recording a 16.71% yearly rise from November 2016. It was followed by water, electricity, gas, and other fuels prices which increased by a yearly 8.92% in November 2017. Moreover, alcoholic beverages and tobacco and old rent prices also witnessed a yearly increase of 7.64% and 7.11%, respectively. Communication prices, on the other hand, witnessed the lowest increase of 0.82% on a yearly basis in November 2017. On a month-on-month basis, inflation recorded a 0.55% increase in November 2017 from October 2017, with clothing and footwear prices recording the highest monthly increase of 3.02%, followed by water, electricity, gas, and other fuels prices with a monthly rise of 1.04%. Moreover, transportation prices recorded a monthly rise of 0.88%. On the other hand, prices of communication recorded a monthly decrease of 0.05% in November 2017. On a geographical basis, Nabatieh witnessed the largest month-on-month increase in CPI by 0.85%, followed by the South and Bekka with a monthly increase of 0.51% and 0.39%, respectively. Beirut and North witnessed a month-on-month increase in CPI by 0.32% and 0.31%, while Mount Lebanon witnessed the lowest month-on-month increase of 0.30%. Source: Central Administration of Statistics, Bankmed Research Bankmed - Market & Economic Research Division 4
BANKING & FINANCE The Central Bank s assets reach USD 118.3 billion as at end-december 2017 with USD 12 billion in gold reserves BDL s total reserves, including gold, reached USD 54 billion as at end-december 2017. Banque du Liban (BDL) s bi-monthly balance sheet as at end-december 2017 reported total assets of USD 118.3 billion, recording a yearly 15.6% increase from end-december 2016. As at end-december 2017, gold stood at USD 12 billion reporting a year-on-year increase of 12.1% when compared to end-december 2016, while foreign assets recorded a yearly 3.2% increase to reach USD 42 billion. Moreover, loans to the local financial sector increased by a yearly 98.9% to reach USD 12.7 billion as at end-december 2017. On the liabilities front, BDL reported an increase of 15.8% year-on-year in financial sector deposits to reach USD 97.5 billion, accounting for 82% of total liabilities along with a 7% yearly increase in public sector deposits, which amounted to USD 5.9 billion as at end-december 2017. Source: BDL, Bankmed Research Bankmed - Market & Economic Research Division 5
BANKING & FINANCE Deposits denominated in foreign currencies fall by USD 143 million during the week of December 07-14, 2017 Local currency term deposits M2 decreased by USD 109 million during the week of December 07-14, 2017 to reach USD 51.753 billion. On the monetary front, the overall money supply M4 decreased by USD 226 million during the week of December 07-14, 2017 to USD 144.033 billion, while the non-banking sector treasury bills portfolio increased by USD 27 million during the same week. Lebanese Pound denominated deposits and currency in circulation M1 decreased by 1.19% (or USD 79 million) during the aforementioned week to USD 6.566 billion. In parallel, local currency term deposits M2 decreased by USD 109 million during the same week to stand at USD 51.753 billion. The private sector term and saving deposits denominated in LBP (M2-M1) decreased by USD 31 million during the mentioned week to around USD 45.187 billion, while deposits denominated in foreign currencies (M3-M2) decreased by USD 143 million during the week to reach USD 84.932 billion. Source: BDL, Bankmed Research Mazen Soueid, Ziad Hariri, Rita Nehme and Nadine Abdel Fattah Disclaimer This material has been prepared by Bankmed, sal based on publicly available information and personal analysis. It is provided for information purposes only. It is not intended to be used as a research tool nor as a basis or reference for any decision. The information contained herein including any opinion, news and analysis, is based on various publicly available sources believed to be reliable but its accuracy cannot be guaranteed and may be subject to change without notice. Bankmed, sal does not guarantee the accuracy, timeliness, continued availability or completeness of such information. All data contained herein are indicative. Neither the information provided nor any opinion expressed therein, constitutes a solicitation, offer, personal recommendation or advice. Bankmed, sal does not assume any liability for direct, indirect, incidental or consequential damages resulting from any use of the information contained herein.