Lebanese face booming war economy amid quest to seek safety from Israeli strikes

Since the Lebanese militant group Hezbollah launched fire against Israel in retaliation its genocidal war on Gaza, Sarah Krayani, a 29-year-old mother, was displaced twice, joining the ranks of over 102,500 people who have been forced to flee their homes for safety, and in doing so, spurring an economy of crisis in a country already badly hit by multiple economic and political crises.

As she scrolls through her phone's inbox to show the countless conversations she's had with people in a desperate attempt to rent a flat, Krayani noted how challenging it is to find a place to stay amidst multiplied rent fees, which had only got worse as the security situation exacerbates and the spectre of escalations loomed heavily in the past couple of weeks. 

"Two weeks after we fled to the suburbs, Israel struck the area. We lived through moments of terror and anxiety, especially after Hezbollah's threat to retaliate. We feared strong reactions, so we decided to move to the mountains in search of safety," the photography studio owner tells The New Arab of her first displacement from Maaroub in southern Lebanon to Beirut around a month ago. "We rented a chalet for two days, hoping things would settle down quickly, but as the tension increased, we realised this situation was not temporary. We had to rent a house for two months, but the difficulties didn't end there."

Israel's assassination of Hezbollah senior leader Fouad Shukr in Beirut late July, followed by the assassination of Hamas' chief and head of the Palestinian negotiating team, Ismail Haniyeh, a day later in Tehran, have together unleashed vows of vengeance against Israel. Although it's been nearly two weeks without clear demonstration of an escalation, the whole region is gripped by fear of what lies ahead, and the Lebanese have been rushing to distance themselves from regions of conflict by relocating, or fleeing Lebanon altogether. 

"The process of finding a rental house was extremely frustrating. Prices had skyrocketed, with homes that used to rent for US$300 are now offered for US$900. We had to pay three months' rent in advance along with a month's security deposit. I felt disheartened when one broker asked me for US$20 just to show me the house," said the clearly-distraught mother. "Ultimately, we agreed to rent a house in the Louaizeh area in Mount Lebanon with our relatives to share the costs, as most of our businesses had come to a halt after the war. Now, there are 15 of us, including children, living in a four-bedroom house. Every day that passes, we feel the weight of the situation more, and our only hope is to find some stability soon."

Adding to the strain

Lebanon's economy has been reeling from an economic crisis that was described by the World Bank in 2021 as one of the worst worldwide since the mid-nineteenth century. So when the Lebanese economy was set to witness a growth of only 0.2 percent in 2023, this scant growth was a welcomed achievement, given that it was the first growth in four years. But the spillover from the war on Gaza brought the economy tumbling down again.

On one hand, foreign expatriates were urged to leave, and multiple airlines suspended their flights. Arrivals declined by 26% and departures increased by 16.5%—changes which homeowners cite as the reason behind the surge in rents.

Giselle Mansour, a landlady managing her own furnished flats in the Byblos and Batroun areas, says the rents she earns are her only income. "I have invested a lot in preparing these flats, which I usually rent to expatriates and tourists. With the deteriorating security situation in the country and the departure of tourists and expatriates, rental requests are now coming from internally displaced families. It is natural for some to feel that the prices are high, as the prices I set were intended for tourists and expatriates coming to Lebanon for tourism."

With summer drawing to an end, tourism officials have said that all hope is lost in salvaging any of it. In a radio interview, the Secretary-General of the Union of Tourism Syndicates, Jean Beiruti, noted that the sector's losses have exceeded US$3 billion, hotel occupancy rates have dropped to less than 20%, and restaurant activity has decreased by 40%.

Feeling the impact of this first-hand, Giselle argues that her rates are not "intended to exploit the displaced or political differences."

She adds, "There are areas in the south that are still safe, yet people there also complain about high rental prices. This is my livelihood, which I rely on in the absence of opportunities and the deteriorating economic situation."

Leaving Lebanon

Fatima Shahin, who single-handedly looks after her child and mother in Beirut's suburb, said it was the recent Israeli sound jets over Beirut that made her realise the need to leave. "The sound of explosions was terrifying and frequent, and my heart was breaking out of fear for my mother and daughter. I started looking for a small flat to hide in until things become clearer, but it wasn't that simple. I searched in Beirut outside the suburb, in areas considered safer, but the prices were outrageous and unaffordable for people like us," said the 34-year-old freelance translator.

Torn by confusion and anxiety, Shahin is clueless as to what to do. "I don't know where to go. Everything around me is unclear. The government isn't providing any guidance, and Hezbollah isn't showing a clear stance, which complicates and obscures the situation even more," she added. Ultimately, she "found that the cost of leaving the suburb and moving to another area within Lebanon is almost the same as the cost of travelling to another country. So I decided to travel temporarily with my mother and daughter until we know what will happen."

Their flight to Turkey is not until next week, but Shahin points to the packed suitcases lined up by the wall of her house in the corner of a room in her flat. "We are living in tension and anxiety that I haven't felt since the beginning of the war on Gaza. All I want is a safe place where we can breathe easy, even if only for a short time."

Amidst disrupted aviation activity at Beirut International Airport as a result of the escalation, some tourist companies have stepped in, offering bus rides to Jordan's Queen Alia Airport for those who want to head abroad.

"Previously, we organised land trips to Jordan for tourism, as these trips were affordable for Lebanese travellers looking to explore Jordan's landmarks on a short excursion," Mohammad Al-Tal, owner of Holiday International Travel, explained.

"However, with the recent wave of flight postponements, delays, and cancellations at the airport, we've shifted to offering land transportation to Queen Alia Airport. Many of our passengers are expatriates needing to return to their countries of residence due to professional commitments and concerns about the situation worsening," he continued, adding that some Lebanese with foreign visas or passports are also among his clients. 

"We've already operated two full trips to Amman Airport and are prepared to meet the demand. If there is a need to operate additional trips in the near future, we will do so without hesitation."

This article is published in collaboration with Egab.