Israel-Hezbollah Strikes Cloud Lebanon’s Economy, Minister Says 

A man examines a destroyed warehouse, one day after an Israeli air raid at an industrial district, in the southern coastal town of Ghaziyeh, Lebanon, 20 February 2024. (EPA)
A man examines a destroyed warehouse, one day after an Israeli air raid at an industrial district, in the southern coastal town of Ghaziyeh, Lebanon, 20 February 2024. (EPA)
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Israel-Hezbollah Strikes Cloud Lebanon’s Economy, Minister Says 

A man examines a destroyed warehouse, one day after an Israeli air raid at an industrial district, in the southern coastal town of Ghaziyeh, Lebanon, 20 February 2024. (EPA)
A man examines a destroyed warehouse, one day after an Israeli air raid at an industrial district, in the southern coastal town of Ghaziyeh, Lebanon, 20 February 2024. (EPA)

Lebanon's long-troubled economy is shrouded in uncertainty by conflict on its southern border between Israeli forces and Hezbollah militants, Lebanon's economy minister said on Monday.

Minister of Economy and Trade Amin Salam told reporters in Abu Dhabi that Lebanon would miss an annual growth forecast of 2-4% this year as a direct result of the cross-border strikes.

"Lebanon is in a state of lot of questions now but definitely things are declining in a negative way," he said on the sidelines of a World Trade Organization (WTO) meeting.

He said it was unclear if visitors from the Lebanese diaspora and other tourists, who he said injected about $5-7 billion into the economy last summer, would come to the country this season.

The recent winter season had seen fewer overseas visitors than expected after a strong summer season before the war, he said. The US, Brazil, and Australia, home to many Lebanese, are urging their citizens to reconsider travelling to Lebanon.

"We don't know really if in the next few months we can look at a summer season that will pump back billions of dollars into the economy," he said, uncertain if the diaspora will stay away.

Israeli forces and Lebanon's Hezbollah have for months traded fire across Lebanon's southern border, which the Iran-backed group says is in support of its Palestinian ally Hamas.

Hamas launched a cross-border attack on Israel from Gaza on Oct. 7 that left around 1,200 people dead, with more than 200 taken hostage, of which around 100 have been released.

In retaliation, Israel has bombed and invaded Gaza with the aim, its government says, of destroying the Iran-backed Hamas, which rules the coastal enclave of some 2.5 million people. The military operations have killed more than 29,000 Palestinians.

"Lebanon is not just affected by the war in Palestine and Gaza. Lebanon is in a state of war. We are losing our land," Salam said.

Salam said the southern border fighting had weakened Lebanon's exports with about $2.5 billion in agricultural land, trees and goods damaged or destroyed so far in the strikes.

He said the government was seeking international assistance to rehabilitate farmland damaged by the fighting.

"It will take years and it will take a lot of money, so definitely we will be seeking international community to aid us in rehabilitating all the areas," Salam said.

Lebanon's economy began to unravel in 2019 after decades of profligate state spending and corruption.



Fire, Smoke Upend Western Canada’s Summer Tourism Season

 A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
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Fire, Smoke Upend Western Canada’s Summer Tourism Season

 A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)

Severe wildfire seasons are increasingly hurting western Canada's lucrative tourism industry, with some visitors beginning to avoid the busy late-summer months due to concerns about uncontrolled blazes, smoke-filled skies and road closures.

After a scorching start to July, nearly 600 wildfires are now ablaze across British Columbia and Alberta, including a huge fire that this week devastated the picturesque tourist town of Jasper in the Canadian Rockies.

Dozens of communities, including popular holiday spots in British Columbia's Kootenay region, are under evacuation orders and several highways are closed.

This year's surge in wildfire activity comes after Canada endured its worst-ever year for wildfires in 2023, when more than 15 million hectares (37 million acres) burned, including parts of the city of West Kelowna in the heart of British Columbia's wine region.

Ellen Walker-Matthews, head of the Thompson Okanagan Tourism Association, said the industry was seeing a lot more last-minute travel decisions instead of booking in advance.

"It's a huge blow. July and August are traditionally the busiest months in the region," said Walker-Matthews, adding that while her region has been relatively unscathed by wildfires this summer, some visitors are choosing to avoid interior British Columbia altogether.

The members of the British Columbia Lodging and Campgrounds Association are reporting a 5-15% drop in bookings from a year ago, with the biggest declines coming from the hotter Okanagan and Cariboo regions, said Joss Penny, who heads the association.

"The concern is that this is something we have to live with and we have it every year now," said Penny.

Although wildfires in Canada's forests are natural and common, scientists say drier, hotter conditions fueled by climate change are leading to more volatile and frequent blazes.

'SMOKEY SKIES'

Some events, like the Salmon Arm Roots and Blues Festival, usually held in August, have now been rescheduled to earlier in the summer to avoid what is now seen as peak smoke season. The festival, which was cancelled last year due to nearby wildfires, was this year moved to July to benefit from "less smokey skies."

Wildfires and extreme climatic events are prompting tourists to "change their plans not just temporarily, but permanently," said Elizabeth Halpenny, a tourism researcher and professor at the University of Alberta, noting that seasonal workers in the sector are often the hardest hit as they have few protections during a bad season or amid a cataclysmic fire.

Tourism contributed C$7.2 billion to the British Columbia economy in 2022, and C$9.9 billion to Alberta in 2023, according to the latest government data.

Jasper National Park is one of Canada's premier tourist destinations, with more than 2 million visitors a year flocking to see its pristine mountain landscapes and abundant wildlife, including grizzly bears, moose and elk.

Kelly Torrens, vice-president of product at international tour company Kensington Tours, described western Canada as a bucket-list destination. But the company now has 49 trips that were supposed to pass through Jasper this season in limbo. Six others were forced to evacuate the park when the fire hit.

Parks Canada has cancelled all camping reservations within Jasper National Park until Aug. 6 and with potentially 50% of the town's structures destroyed by fire, the cleanup and rebuild could take years.

Halpenny is among those hedging their bets.

"I've booked a campsite stay in the mountain parks but at the same time, I booked a campsite out on the prairie somewhere and that's my backup plan because I don't want to miss out on my vacation with my family."