Lebanon Restaurants Partially Reopen, Face Faltering Economy

A woman rides her bike past a number of closed bars along a major nightlife hub during the coronavirus pandemic, in central Beirut, Lebanon, May 3, 2020. (AP)
A woman rides her bike past a number of closed bars along a major nightlife hub during the coronavirus pandemic, in central Beirut, Lebanon, May 3, 2020. (AP)
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Lebanon Restaurants Partially Reopen, Face Faltering Economy

A woman rides her bike past a number of closed bars along a major nightlife hub during the coronavirus pandemic, in central Beirut, Lebanon, May 3, 2020. (AP)
A woman rides her bike past a number of closed bars along a major nightlife hub during the coronavirus pandemic, in central Beirut, Lebanon, May 3, 2020. (AP)

It's not just a lifestyle, it's a livelihood. That was the motto used by some of Lebanon's best-known nightclubs to raise money for thousands of bartenders, waiters and support staff who have been without a job since the country imposed a strict coronavirus lockdown in mid-March.

The club owners pulled together a three-day fundraising marathon: 150 DJs from around the world spun their records in five different virtual rooms over the weekend in a non-stop electronic music festival. By Sunday night, they had raised the equivalent of $36,000.

The initiative is unlikely to make a dent, reported The Associated Press. The hospitality industry has been hit particularly hard by the government-mandated closures which followed a series of bad seasons. The pandemic delivered just the latest blow to an economy already devastated by the worst financial crisis since the country's 1975-90 civil war.

Lebanon is entering a new phase of the lockdown Monday, allowing restaurants to open at 30% capacity during the day. But many business owners say they won't reopen because they would be losing more money if they operate under such restrictions during a faltering economy.

Maarouf Asaad, a 32-year-old bartender who was paid for one of the two months he stayed home, was expecting to return to work Monday, where his bar would operate as a daytime cafe. Then new government regulations Sunday ordered cafes to stay shut until June, along with clubs and bars. There was no explanation for the distinction between restaurants and cafes.

Asaad said his basic salary won’t keep up with new inflated prices while his customers will be feeling the pinch of the sudden severe currency depreciation. In recent weeks, the Lebanese pound lost nearly 60% of its value against the dollar and prices of basic goods soared.

"It won’t end even when I go back. It is not just coronavirus, it is also a collapsing economy,” Asaad said.

At least 150,000 people are employed in Lebanon’s hospitality industry. Some 25,000 of them already lost their jobs even before the pandemic. None are unionized and not all are insured or can even secure minimum wage.

The lockdown topped months of a spiraling economic crisis that already had a staggering impact on the hospitality industry, a resilient sector in this small Mediterranean country that survived political instability and contributed as much as 18% of GDP in 2017, a peak year.

Around 800 small and medium businesses have folded between September and January, according to Maya Bekhazi, secretary general of the syndicate for owners of restaurants, cafe and bars.

Bekhazi said she expects losses for February and March to be “huge."

“Since this morning, we're getting messages: 'We are not opening; this place is going to shut down; this hotel is going to shut down for good.' It's really drastic,” she said.

And those still in business are struggling. Supplies are priced at the pound-to-dollar black market rate while restaurants and bars are still expected to use the official set rate.

“Every item I sell today I sell at a loss,” she said of her own business, a patisserie.

The International Monetary Fund projected that Lebanon's economy will shrink 12% in 2020, nearly double the contraction of the year before.

The government on Friday formally asked the IMF for a rescue plan for the difficult years ahead.

Amid the gloom, the three-day Electronic Labor Day festival, launched May 1 to commemorate Workers Day, offered a non-stop party as immersive as any real clubbing experience in Lebanon could be.

With DJs from over 30 countries — including Germany, the United States, France, Egypt and Lebanon — the lineup rivaled Ibiza’s popular opening May parties. DJs played over footage from previous parties, replicating the club vibe at home.

Many DJs displayed signs saying “We Got Your Back.”



What Would Lifting US Sanctions on Syria Mean to the War-Torn Country?

People walk past a billboard displaying Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, and US President Donald Trump with a slogan thanking Saudi Arabia and the United States, in Damascus on May 14, 2025. (AFP)
People walk past a billboard displaying Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, and US President Donald Trump with a slogan thanking Saudi Arabia and the United States, in Damascus on May 14, 2025. (AFP)
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What Would Lifting US Sanctions on Syria Mean to the War-Torn Country?

People walk past a billboard displaying Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, and US President Donald Trump with a slogan thanking Saudi Arabia and the United States, in Damascus on May 14, 2025. (AFP)
People walk past a billboard displaying Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, and US President Donald Trump with a slogan thanking Saudi Arabia and the United States, in Damascus on May 14, 2025. (AFP)

President Donald Trump’s announcement that the US will ease sanctions on Syria could eventually facilitate the country’s recovery from years of civil war and transform the lives of everyday Syrians.

But experts say it will take time, and the process for lifting the sanctions — some of which were first introduced 47 years ago — is unclear.

“I think people view sanctions as a switch that you turn on and off,” said Karam Shaar, a Syrian economist who runs the consultancy firm Karam Shaar Advisory Limited. “Far from it.”

Still, the move could bring much-needed investment to the country, which is emerging from decades of autocratic rule by the Assad family as well as the war. It needs tens of billions of dollars to restore its battered infrastructure and pull an estimated 90% of the population out of poverty.

And Trump’s pledge has already had an effect: Syrians celebrated in streets across the country, and Arab leaders in neighboring nations that host millions of refugees who fled Syria’s war praised the announcement.

What are the US sanctions on Syria? Washington has imposed three sanctions programs on Syria. In 1979, the country was designated a “state sponsor of terrorism” because its military was involved in neighboring Lebanon's civil war and had backed armed groups there, and eventually developed strong ties with the Iran-backed Hezbollah group.

In 2003, then-President George W. Bush signed the Syria Accountability Act into law, as his administration faced off with Iran and Tehran-backed governments and groups in the Middle East. The legislation focused heavily on Syria's support of designated terror groups, its military presence in Lebanon, its alleged development of weapons of mass destruction, as well as oil smuggling and the backing of armed groups in Iraq after the US-led invasion.

In 2019, during Trump's first term, he signed the Caesar Act, sanctioning Syrian troops and others responsible for atrocities committed during the civil war.

Caesar is the code name for a Syrian photographer who took thousands of photographs of victims of torture and other abuses and smuggled them out of the country. The images, taken between 2011 and 2013, were turned over to human rights advocates, exposing the scale of the Syrian government’s brutal crackdown on political opponents and dissidents during countrywide protests.

What has been the impact of US sanctions on Syria? The sanctions — along with similar measures by other countries — have touched every part of the Syrian economy and everyday life in the country.

They have led to shortages of goods from fuel to medicine, and made it difficult for humanitarian agencies responding to receive funding and operate fully.

Companies around the world struggle to export to Syria, and Syrians struggle to import goods of any kind because nearly all financial transactions with the country are banned. That has led to a blossoming black market of smuggled goods.

Simple tasks like updating smartphones are difficult, if not impossible, and many people resort to virtual private networks, or VPNs, which mask online activity, to access the internet because many websites block users with Syrian IP addresses.

The impact was especially stark after a devastating 7.8 magnitude earthquake hit Türkiye and northern Syria in February 2023, compounding the destruction and misery that the war had already brought.

Though the US Treasury issued a six-month exemption on all financial transactions related to disaster relief, the measures had limited effect since banks and companies were nervous to take the risk, a phenomenon known as over-compliance.

Interim Syrian President Ahmed al-Sharaa — who led the insurgency that ousted President Bashar al-Assad — has argued the sanctions have outlived their purpose and are now only harming the Syrian people and ultimately preventing the country from any prospect of recovery.

Trump and Sharaa met Wednesday.

Washington eased some restrictions temporarily in January but did not lift the sanctions. Britain and the European Union have eased some of their measures.

What could lifting the sanctions mean for Syria? After Trump’s announcement, Syria's currency gained 60% on Tuesday night — a signal of how transformational the removal of sanctions could be.

Still, it will take time to see any tangible impact on Syria's economy, experts say, but removing all three sanctions regimes could bring major changes to the lives of Syrians, given how all-encompassing the measures are.

It could mean banks could return to the international financial system or car repair shops could import spare parts from abroad. If the economy improves and reconstruction projects take off, many Syrian refugees who live in crowded tented encampments relying on aid to survive could decide to return home.

“If the situation stabilized and there were reforms, we will then see Syrians returning to their country if they were given opportunities as we expect,” says Lebanese economist Mounis Younes.

The easing of sanctions also has an important symbolic weight because it would signal that Syria is no longer a pariah, said Shaar.

Mathieu Rouquette, Mercy Corps’ country director for Syria, said the move “marks a potentially transformative moment for millions of Syrians who have endured more than 13 years of economic hardship, conflict, and displacement.”

But it all depends on how Washington goes about it.

“Unless enough layers of sanctions are peeled off, you cannot expect the positive impacts on Syria to start to appear,” said Shaar. “Even if you remove some of the top ones, the impact economically would still be nonexistent.”