Lebanon - Current economic position and prospects

RETURN TO p,CPOPTS DESK RESTRICTED WITHIN Report No EMA-26a ONE WEEK This report was prepared for use within the Bank and its affiliated organizations They do not accept responsibility for its accuracy or completeness The report may not be published nor may it be quoted as representing their views INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION MEMORANDUM ON CURRENT ECONOMIC POSITION AND PROSPECTS OF LEBANON September 11 1970 Europe Middle East and North 4frica Department CURRENCY EQUIVALENTS 1 Lebanese Pound (LL) * 0.31 US Dollars 1 US Dollar * 3.24 Lebanese Pounds (LL) These rates represent the approximate average of 1969 free market rates, which fluctuated between LL 3.20 and LL 3.32 per US dollar. Year-end (December average) rates for previous years are given in Table 3.3. TABLE OF CONTENTS page Para. BASIC DATA SUMARY AND CONCLUSIONS I. RECENT DCONOMIC DEVELOPMENT A. Influence of political factors 1 1 B. Level of activity in recent years 1 3 C. Sectoral developments 2 6 D. Balance of payments 3 10 II. THE mANAGEMENT OF THE ECONOMY A. Planning and coordination 4 12 B. Public finance 5 13 C. Money, credit and prices 7 17 D. External trade policy 8 20 III. DEVELOPMENT PROSPECTS 8 21 STATISTICAL APPENDIX This memorandum updates the last Bank econodc report entitled "Current Economic Position and Prospects of Lebanon" (FmA-6a of April 18, 1969). Due to the state of statistics in Lebanon, the 1968 data are often atLll provisional and 1969 data are usually not available; it is, however, possible to describe general trends for 1969 and some prospects for 1970. The. memorandum was prepared by Marcel Mass6 on the basis of a country visit in May 1970, with Messrs. C.H. Thompson and C.J. Martin being present part of the time. (Note: Statistical data about Lebanon may contain a considerable margin of error as a result of inadequate or incomplete reporting and should be interpreted with caution) Area: 10,400 square kilometers (4,015 sq. miles) Population (1970): 2.2-2.8 million. (The latest census was conducted in 1932 ), Growth rate: estimated at about 2.5-3.0% per annum. Density: 210-270 per km2 (550-700 per square mile) Gross National Product (market prices - 1968): LL 4,395 million (US $1.39 billion) Per capita: LL 1,831 ($579), assuming a population of 2.4 millin in 1968. Gross Domestic Product (market prices - 1968): Lb 4,240 million (US $1.34 billion) of which, in percent : Trade 32 Industry 13 Financial and other Agriculture 10 services 30 Construction 5 Government 8 Energy and water 2 Money and Credit Rate of Change (percent) 1969 (Dec) 1957 1968 1909 (LL million) 19 1967 1-99 (adjusted) honey supply 1,657 +2 +12 -6 Time and savings deposits 2,062 -6 +17 +20 Commercial bank claims on private sector 2,132 -2 + 1+5 Central Government General Budget (LL million) 1967 1968 1969 1970 TactualT T orecas-7 Receipts 521 573 587 628 Expenditures 592 603 661 729 Balance -71 -101 Balance of Payments (US $ million) 1966 1967 1968 Exports (f.o.b.) 187 206 232 Imports (c.i.f.) -554 -495 -569 Invisibles (net) 257 235 279 Net goods and services -110 -4 7B Transfers 2? 27 30 Capital movements 113 36 75 - 2 - Gross Foreign Assets (US $ million) 1966 1967 1968 1969 (as of December 31) Bank of Lebanon 282 281 33 2 347 Commercial banks 500 h2l 695 533 Total 7W2 L-iF Position (US $ million) tay 31, 1970 Quota 9.0 Drawings outstanding - Bank Position (US $ million) may 31, 1970 Total loans 27 Disbursements 27 Repayments 8 Disbursed and outstanding 19 of which: to Bank 1ll.1 to others 0.9 External Public Debt (US $ million) Outstanding (including undisbursed) as of Pecember 31, 1969 95.9 Annual debt service (19O) 10.4 Debt servize ratio (1970) less than 2% of estimated exports of goods and services (gross) SUMMARY AND CONCLUSIONS i. Recent economic development in Lebanon has been hampered by internal and regional disturbances: after the Intra Bank crash (October 1966) which discouraged foreign capital and checked the high pre-1966 growth rate, the June 1967 war increased political instability in the area resulting in additional setbacks for the economy. Relative quiet in 1968 allowed economic activity to recover. Growth was once again restrained in 1969 by the mounting tension caused by the increase in the activities of Palestinian commandos and by the resulting political crisis, which left the country with a caretaker government for more than seven months. Border incidents led to the may 1970 Israeli incursion. and renewed economic disruption. ii. In these circumstances, the economy did surprisingly well: after a slight GNP dip in 1967 (mainly due to declines in construction and tou- rism), growth resumed in 1968, when GNP surpassed its 1966 level by about 6 percent in real terms. Production rose again in 1969, but at a much lower rate. While construction has been falling steadily since the and of 1966 and agriculture has stagnated, mainly due to a succession of bad weather years, industry, transport and trade have grown fast due partly to the closure of the Suez Canal which favored Lebanese transit trade and industrial exports. Tourism has suffered only briefly from political disturbances, the fall in European and American tourists being more than compensated by rapid growth in Arab visitors. Banking deposits, however, have still not recovered to the September 1966 level. iii. The Government's role in economic management has been mostly passive, with money supply and fiscal receipts usually being left to reflect the level of economic activity. Since current expenditures, especially military, increased relatively fast, development expenditures were squeezed out and fell in 1969 to a level lower than in 1965. Private investment sharply decreased over the period as a,result of political uncertainty, the decline in foreign private capital inflow,and tightening of commercial bank credit. Although due to potential development of trade, industry, tourism and, to some extent, agriculture, there are good prospects for a satisfac- tory growth rate, overall investment will-have.totbe considerably increased. Present difficulties in mobilizing sufficient internal investment finance - in particular through a reformed fiscal system - would point to the need for some external borrowing which, in view of the relatively low debt burden (1-2 percent of export earnings), could be made on conventional terms. I. RECENT cCONO'I DEVELOPYENT A. Influence of Political Factors 1. Since the June 1967 war, the political situation of Lebanon has become increasingly tense. Attempts at containing the activities of mili- tant Palestinian refugees led to clashes with the Lebanese army, upsetting an already tenuous internal balance of power and leaving the country with a caretaker government from April to November 1969. This, combined with external pressure (especially the October-November closure of the Syrian border), led to an agreement with the commandos which set out limits to their operations from Lebanese territory. The agreement has not, however, solved the problem: new clashes b.etwqen commandos and armed Lebanese civi- lians errupted in March 1970, and border incidents were followed by the Israeli incursion of May 12, shelling of Lebanese villages and an exodus of Southern peasants. The election of a new President of the Republic which, according to the Constitution, was held in the summer of 1970, contributed to reduce further the activity and efficiency of the Government. 2. Apart from diverting scarce government revenues from development to military expenditures .and disrupting the vi-al trar7it trade, these disturbances proved to be harmful to business confidence and caused consi- derable setbacks in some sectors of the,economy. B. Level of Activity in Recent Years 3. In these circumstances, the economy behaved surprisingly well. Even though the paucity of reliable statistics prevents a firm judgement, it would seem that, after a temporary decline.of GDP in 1967 (mainly due to a fall in construction and tourism), growth resumed in 1968 when GDP surpassed its 1966 level by about 6 percent in real terms. While construction conti- nued its slide downwards and agriculture was still at a level lower than in 1966, industry, transport and trade strongly recovered, due partly to some revival of foreign capital inflows and higher tourist receipts, and partly 4 cloire c tc - C-nJ which caused the re-routing of-Gulf,States trade through Beirut. 4. The recovery continued until the spring of 1969, when it was checked by the effect of internal disturbances on tourism and public invest- ment. However, industrial production (and exports) grew strongly and the transit trade increased still further. Even tourism, upset briefly by the December 1968 Israeli attack on Beirut airport, quickly resumed its upward trend: there was probably an 8 percent rise in receipts for the year as a whole, especially due t.o an increase in Arab visitors. Combined with a mediocre agricultural prodqction, partly compensated by firm prices, the continuing weakness of the construction sector and a slight recovery in banking activities, these factors probably add up to a small overall growth rate for 1969. - 2 - 5. This resumption of growth after the June 1967 war has been accompanied by unfavorable structural changes. There has been a marked decreee in long-term private capital inflows, which had traditionally financed high rates of both consumption and investment. Also, the share of gross fixed capital formation in GNP fell from about 22 percent in 1966 to 17 percent in 1968, and was probably still lower in 1969 as a result of decreasing private investment, and public project deferrals due to the seven-month absence of effective government. Unless these trends are reversed, the basis for further growth would seem to be consi- derably weakened. C. Sectoral Developments 6. Agriculture - The agricultural sector, which employs about 50 percent of the active population, produces only a small (10 percent in 1968) and slowly decreasing share of GDP. Due to a succession of bad weather years, crop production (about 64 percent of the total) stagnated in 1967 and 1968, and fell in 1969; livestock production, on the other hand, due mainly to modernization of dairy farming and poultry production, increased in 1968 (about 7 percent) and again in 1969, despite some mar- keting difficulties. While agricultural products make up more than 20 percent of total exports of goods, with fruit the main export product, production covers only about 70 percent of internal consumption and the agricultural deficit is slowly increasing. To pranote'expansion-and diversification, the Government provides protectionzagainst certain imports, some,price support, and limited agricultural credit and invest- ment facilities through the Plan Vert and the BCAIF(Banque de Cr6dit Agricole, Industriel et Foncier). 7. Industry - After a slight (4 percent) decrease in 1967, industrial production reached LL 540 million in 1968, (13 percent of GNP, and a 5 percent growth over 1966) and close to LL 590 million in 1969 - a 9 percent increase. At the same time, industrial exports have been going up-by over 20 percent a year since 1966, due in particular to the Suez Canal closure and the resulting increased competitiveness of Lebanese products in the Gulf States. Shortage of industrial finance has increasingly become,a bottleneck to expansion. The traditional form of finance - rolling over short-term credits - is becoming scarce, as the banking sector grows more cautious. Self-finance, though an important source of funds, is not suffi- cient especially since mugh of the previous spare capacity has by now been utilized and new investment are becoming necessary. Though the need for a development bank for induitry and tourism with more capital and better facilities than the presently-used BCAIF, is generally recognized, no plan had yet been agreed upon (though the World Bank has several times offered its participation, and helped put a project in shape). Attempts at diver- sifying export markets (Arab markets account for an increasing percentage - over 60 percent in 1969 - of industrial exports) have not so far been successful. P. Construction - The Intra Bank failure in 1966 and the consequent rush on other banks made advances and credits for construction purposes more difficult to obtain and thus slowed down many construction activities for lack of funds. At the same time, the crisis discouraged foreign private capital - a good part of which had traditionally been invested in real estate. The realization that Beirut may already be overbuilt, due to very high expectations for tourism and real estate speculation, and the effects on tourism of the June 1967 war, which reduced the number of European and American visitors, combined with financing problems to accentuate the recession. Total investment in construction declined heavily in 1967 and again in 1968. According to the indicators of Table A below, it would seem to have reached a trough in 1969. Present political uncertainties are not, however, likely to be favorable to fast growth in this sector. Table A. - Construction 1966 1967 1968 1969 Construction permits issued 1,956 1,050 971 945 Nunber of square-meters built ('000) 1,734 1,006 946 957 Cement (local sales - '000 tons) 1,098 933 932 961 9. Tourism - The rapid growth of foreign visitors and tourism earnings before 1967 was interrupted by the June war and its aftermath. Although the 20 percent decline of 1967 in tourist numbers was followed by a reco- very in 1968, there has been a relative decline in American and European tourists. This, however, was more than compensated for by an increase in visitors from Arab countries. Following the change in tourist structure, daily expenditures fell, but average length of stay increased markedly: as a result, tourism earnings rose in 1968 to LL 359 million - LL 110 million above 1967 and a 30 percent increase over 1966. Despite the December 1968 raid on Beirut airport and the April internal troubles, the number of tourists increased in 1969 by,about 5.7 percent and earnings from tourism were probably about 8 percent higher than in 1968. The fact that Beirut is no longer the door to the Holy Land, and in particular Jerusalem, would seem to have been partly compensated by an increase in the number of regional headquarters of foreign corporations located in Beirut. D. Balance of Payments 10. The Lebanese balance of payments is characterized by a wide - and increasing - trade deficit, traditionally financed by invisible earnings (mainly from tourism, transportation and banking), emigrant remittances and private capital inflow. The June 1967 war reversed these two trends. Exports and transit trade increased rapidly, mainly due to the Suez Canal closure which encouraged land transit of Gulf States imports through Beirut; imports, as a result of the recessionary impact of.the Intra Bank crisis and of the uncertainty generated by the war, fell 11 percent over 1966. The much smaller trade deficit was only partly financed by lower net invisible earnings (especially due to decreased tourism receipts), and a LL 2h0 mil- lion fall in capital inflow resulted in-a small decrease in official reserves. 11. The 1968 economic recovery was accompanied by a fast rise in imports (customs receipts rose by 21.6 percent over the 1966 level) and even an export growth rate of lh percent did not prevent a widening of the trade deficit by about LL 10 million. This, however, was offset by the recovery of tourism, and the deficit on goods and services barely widened. The return to a more normal situation produced a large short- term capital inflow leading to a LL 159 million increase in official reserves. Though complete figures for 1969 are not available, it would seem that imports rose slightly (customs receipts rose 7 percent above the 1968 level), while exports were mixed - with industrial exports increasing by 20 percent,and fruit and vegetable exports falling about 20 percent in volume (but much less in value, due to price rises). The trade deficit may have risen in absolute terms, which was partly compen- sated by an increase in tourism receipts. Even though the size of capital movements is not yet known, the increase in gross foreign assets during the year ($53 million) would seem to indicate an overall surplus. II. THE MANAGEMENT OF THE ECONOMY A. Planning and Coordination 12. In general the existence of a Planning ministry since 1954, and of development plans since 1958, has had limited effect on the scope and pattern of public investment. The autonomous agencies which carry out most of the projects (Conseil Ex6cutif des Grands Travaux, Grands Travaux de Beyrouth, and various authorities dealing with power, irrigation, etc.) do little to coordinate their individual programs. The first public invest- ment plan (1958) had few results. The next plan, which finally covered the period 1965-69, amounted to LL 1,036 million and merely listed a number of high priority projects as a guideline for annual investment budgets. Adopted in 1964, this plan was revised in 1965, and discarded after the June war. A new list of priority projects amounting to about LL 200 million was then adopted for the next 18 months, and included such projects as modernization of the port and airport of Beirut. This Plan was only partly realized, and there is now a revision of the various projects, which together with a macro-economic frame, should lead to a 1970-74 "Second Five-Year Plan". A new concept (Programme Global et Int6gr6) initiated by the ministry of Planning and based on a desired joint effort between Lebanon and interna- tional organizations, aims at defining overall concepts and priorities. The present weak statistical base, and the lack of interest shown by the Government in the coordination of economic policies and of public invest- ment, could jeopardize the possibility of making much progress with the formulation of a practical program. The implementation of any program will be limited by the shortage of public financial resources and the absence of efficient government machinery for the execution of investment projects. -'uturc effective development planning in Lebanon will depend more on the formulation of appropriate economic policies and on the organization of suitable planning machinery than on the preparation of a new development plan. -5- B. Public Finance 13. The public sector consists of the central government, public enterprises covered by the "annexed budgets", autonomous agencies and the municipalities. With qualifications as to coverage and reliability, some estimates of public sector actual receipts and expenditures can be given as follows: Table B. - Public Sector Finance fLL millions) 1966 1967 1968 1969 Receipts General Budget 526 521 573 600 Annexed Budgets 76 87 100 n.a. Autonomous Agencies 209 241 268 n.a. Municipalities 123 120 131 n.a. Total 934 969 1,072 Expenditures General Budget 548 592 603 '635 Annexed Budgets 49 52 60, n.a. Autonomous Agencies 199 236 255 n.a. Municipalities 86 90 105 n.a. Total 882 970 1,023 Source:' Mission estimates. Public sector expenditures are channeled predominantly through the central ,government (about 60 percent), with 25 percent made by the autonomous agencies and only 10 percent by the municipalities (with more than three- quarters of this done by the municipality of Beirut). 14. The share of government in the economy has not varied much in recent years. Since budgets are not used as planning or anti-cyclical tools, the behaviour of receipts and expenditures has been shaped largely by the pace of economic activity. For instance, central government revenues declined by LL 4 million in 1967, due mainly to an 11 percent decrease in customs receipts (which make up about 30 percent of total receipts), reflect- ing the decrease in imports brought about by the Intra-Bank-induced recession -6- and the June War. At the same time expenditures went up, partly as a result of increased defense spending. The 1968 economic recovery led to a 10 percent revenue increase, while expenditures went up by only 2 per- cent, and the deficit was cut to about LL 30 million. For 1969, the LL 74 million forecast deficit is unlikely to happen, since investment expenditures decreased sharply, as a result of the seven-month absence of effective Government, while receipts decreased only slightly: taking into account the increase in current expenditures (mainly on defense and education), the 1969 deficit may be about LL 35-45 million. 15. These deficits have so far been financed frm previous surpluses (accumulated before 1962) and a small amount of Treasury Bills. However, the deficits as shown by the budgets (even the "actual" figures) differ widely from movements in the cash position of the public sector (as seen through the consolidated Treasury account of the Government). This is due not only to large Treasury advances to autonomous agencies and municipa- lities, but also to the practice of including as actual budget expenditures a large backlog of payments orders issued to autonomous agencies, but undisbursed because of lags in project execution. This practice reconciles budgetary deficits with treasury surplases:- Table C. - Central Government.Treasury Surpluses (LL millions) Expenditures Balance Expenditures Balance Receipts (incl.payment orders) (Budget) (Paid out only) (Treasury) 1967 521 592 -71 501 +20 1968 573 603 -30 550 +23 Source: mission estimates. 16. To finance its expenditures, the public sector has relied almost exclusively,on tax receipts, with the exception of about LL 155 million of treasury bills issued so far by the Central Government (of which only about LL 89. million are presently outstanding). The Government has traditionally been reluctant to incur a large external public debt: as of December 31, 1969, the disbursed and outstanding part of this debt amounted to less than $60 million. Given the low level of public investment in recent years, and the growing military and development needs, it will be necessary for the government to find new sources of financez part of it could certainly be found through increased efficiency in tax collection and in the determina- tion of tax liability (a field now being investigated by a Ford Foundation team), but the small amounts of internal and external borrowings outstanding suggest that these sources could also be more intensively used. -7- C. noney, Credit and Prices 17. The monetary sector has been much affected by the banking reform of recent years. Since the Intra Bank crisis, about 24 banks out of the initial 94 have been seized or struck off the register, or have merged or gone into self-liquidation. A Banking Control Commission now supervises the application of banking regulations. In addition, a 5 percent reserve requirement was introduced, and all deposits below LL 30,000 are now gua- ranteed by the newly created Deposit Insurance Company. 18. The main characteristic of monetary policy in recent years has been its passive character. In particular, the money supply has been more or less determined by the level of confidence in the economy: when there is instability, the currency in circulation increases almost imme- diately while demand deposits, and usually also time and savings deposits, decline correspondingly. The increased demand for currency is met by the commercial banks through borrowing from, and swap foreign exchange arran- gements with, the Central Bank. This pattern, which occurred after the Intra crisis,.repeated itself after the June war. The general recovery in economic activity in 1968 was accompanied by a 12 percent increase in money supply, built up mainly through a balance of payments surplus. How- ever, credit to the private sector remained stationary. On the other hand, in 1969, the monetary expansion of 1968 was reversed and money supply declined, an increase in currency in circulation being offset by a larger fall in demand deposits. While money supply increased in the first months of 1970, together with the recovery of economic activity, this trend was reversed by the may 1970 political events. Overthe whole period, decreas- ing credit to the private sector has had a recessionary influence on the economy: this decrease was due to general uncertainty, the tightening of bank balance sheets since the Intra crisis, and the inability of the banking system, given the structure of deposits, to lend enough medium- and long-term finance. .19. Because of the passive credit policy and of conservative fiscal management, prices are largely determined by local and foreign market conditions. As far as can be seen from incomplete data, there was a slight decline (one percent) in 1968 from the high price level of 1967 (about 5 percent above 1966). There were renewed price increases in 1969, probably in the range of 6 percent and over most items: food prices rose mostly because of bad crops, import prices because of world conditions and a slight depreciation of the Lebanese pound over the year, while industrial (and especially textile) prices rose because of high demand (due mainly to growing exports). - 8- D. External Trade Policy 20. External trade, on the whole, is free of restrictions. Some imports (about 2 percent in value) and exports are subject to prior licen- sing; seasonal import limitations exist for some agricultural products. Quantitative restrictions apply to some imports; only textiles now enjoy export subsidies. Customs duties average about 10 percent on foodstuffs and 15-18 percent on most other consumption goods; raw materials and other inputs are duty exempt. There are bilateral agreements with most Eastern European countries, but they do -not affect trade significantly. The exchange rate is left free to fluctuate, backed.by,high reserves, mostly held in gold; the small depreciation of the Lebanese pound on the free market in recent years may have helped exports somewhat. III. DEVELOPMENT PROSPECTS 21. In 1970, industrial exports may suffer from the difficulties faced in Syria by the transit trade to Saudi.Arabia, and from import res- trictions in Syria and Iraq. It,is, however, believed in Lebanon that, because of a high growth rate of-consumption imports in the Gulf States and because Lebanese industry is well,placed to fulfil the requirements of these States, a future is assured for fast growing industrial exports. Tourism and banking are likely to be affected.by Israeli incursions and by internal political difficulties, but these two sectors have shown in the past a surprising ability to weather such disturbances. Trade, while vulnerable to the political situation in the region and possible border closures, is helped by the traditional ingenuity of Lebanese traders and their worldwide contacts. In the short term, therefore, it seems that the economy can withstand the present shocks and grow at least at a slow rate, provided social and political problems do not interfere too much. 22. In the medium run, changes in sector structure have to be given more weight. The relative lack of industrial investment may,prevent this sector from adapting rapidly -to changes in,markets and customers' prefe- rences. Tourism is now enjoying a larger proportion of Arab visitors, and, for the future, tourist facilities may have to be adapted to, or created for, different tastes and lower-spending tourists. Banking may suffer from the fact that investors from the oil-rich Arab countries have become more sophisticated, and are now channeling their savings directly into the Euro-dollar market or through Switzerland or London. However, Beirut, with its good communication facilities, its developed banking system and its favorable situation for aiddle Eastern regional headquarters, could still achieve a satisfactory growth rate of financial earnings. Diversifi- cation and marketing would seem to be the main problems facing agriculture and, although there is little scope for a profitable increase in mass- produced crops, Lebanon's scarce arable land or good quality could be used increasitngly for hi)h-value cropo needWifg intensive care and highly- J r-tiod" inapt-a)wer, - 9 - 23. The pace of development will depend critically on internal and regional kolitical stability, and on an increased level of investment. Since 1966, both private and public investments have lagged behind, and the infrastructure necessary for further development is not being built up. The expansion of military expenditures, which has to be expected for the next few years, uill squeeze public development expenditures unless new sources of finance can be found. These sources could be: (a) new fiscal revenues, but this is unlikely since it depends on a reform of the fiscal system which, under present political conditions, will be difficult to carry out; (b) internal borrowing by the Government: this is a likely source, but within narrow limits, due to the conservatism of the Government and the Central Bank and the reluctance of banks to take up treasury bill issues unless their terms are more adapted to the banks' needs; (c) exter- nal borrowing: this is hampered at present by lack of local counterpart funds and a general reluctance to p,it the country in debt towards foreigners. Private investment is limited first by the instability of the internal and external situation and also by the realization that present external markets (which are so important in a country with an internal market as small as Lebanon) may easily become sheltered. Attempts to diversify markets have not so far been very successful. Industrial finance continues to be ham- pered by the lack of a development bank specialized in medium and long term credit for industry and-tourism. The funds 'providei for agriculiure by the Government, mainly through the Plan Vert and the BCAIF, are not suffi- cient for fast growth,-and-no-substantial increase is presently expected. In general, monetary.and,fiscal policies would have to intervene more actively in the management of-the economy, and at least some indicative planning (besides better cooperation and coordination between Ministries and agencies) could be useful to further development. 24. The external public debt of Lebanon is small - less than $100 mil- lion including undisbursed loans - and the debt service ratio is less than 2 percent of poss annual export earnings. Official reserves amount to $350 million (June 1970) and are equivalent to more than seven months of imports. In addition, some $500 million are held by commercial banks. There is some reluctance in the Government and financial circles to increase the foreign debt much and, barring unsuspected political developments, the likelihood that a default of payment could occur is extremely small. The country could thus afford, and would seem to need, foreign capital on conventional terms. STATISTICAL APPENDIX Tabl. 11 2.1 Composition of GDP and GAP 2.2 Resources and Uses -3.1 Balance of Payments 3.2 Composition of ,oreign Trade 3.3 Exchange !ate Movements, 1966-1970 b,.1 External Public Debt Outstanding 4.2 Estimated Future Debt Service Payments r5.1 Central Government Revenue by Source 5.2 Central Government Expenditure by ministry 5.3 Revenue and Expenditure of the Autonumous Agencies 6.1 Assets and Liabilities of the Bank of Lebanon 6.2 Assets and Liabilities of the Commercial Banks 7.1 Structure of Agricultural Production 8.1 Number of Border Arrivals and Region of Origin 8.2 Breakdown of Receipts from Tourism in 1969 9.1 Price Indices Table 2.1 CO,IPOSITIO,N OF GDP AND GNP (in millions of Lebanese pounds) 1966 1967 1)68 Agriculture and animal husbandry Ub2 426 436 Energy and water '88 93 100 Industry and handicrafts 512 692 540 Construction 231 196 194 Transport and communications 310 329 395 Ownership of dwellings 284 300 335 Financial services 141 1119 164 Other services 357 337 397 Trade 1,283 1,160 1,339 Government 319 337 340 GDP at market prices 33867 3,820 4,240 Net factor income from abroad 128 141 155 GNP at market prices 3,995 3,961 4,395 less: indirect taxes 385 354 hoo plus: subsidies 85 87 97 GNP at factor cost 3,695 3,694 4,092 /1 Provisional Source: Ainistry of Planning; Central Statistical Office. Table 2.2 RESOUPCES AND USES (in millions of Lebanese pounds) 1966 1967 1968 Resources: GDP at market prices 3,867 3,820 46,240 Imports less exports of goods and services 860 669 592 Total resources b,727 ,489 ,4832 Uses: Consumption Households 3,393 3,299 3,651 Government 401 419 421 Total consumption L!29 3,718 4,07 Gross fixed capital formation Enterprises 761 627 615 Government 128 132 146 Total gross fixed capital formation 889 75y 761 Variations in stocks 4_ 12 Total uses 4,727 4,489 4,833 /1 Provisional Source: hinistry of Plahning; Central Statistical Office. Table 3.1 .ALANC- 0 PAY.ENTS (in millions of Lebanese pounds) 1966 1967 1968 ur:enlt Account orts c.i.f. 1,733 1,550 1,799 ::xports f.o.b. /3 584 6U 734 Trade balance --90-1-906 Tourism (net) 157 120 227 Investment income (net) 190 123 130 Transport and insurance (net) 155 180 172 ,overnment n.i.e. (net) 97 96 125 biscellaneous services (net) 207 216 227 Balance of services F9 73 5F1 Net goods and services -343 -171 -184 11. 6rants and Remittances (net) 69 85 95 111. ;apital Movements Investment by Lebanese nationals resident abroad and other private long-term - inflow 669 63 91 outflow 40 49 44 net 629 14 47 Government long-term (net) 12 16 14 Government short-term (net) .. 4 1 Other short-term, including commercial banks (net) -286 79 177 Total Capital 355 113 239 11. irrors and Omissions 15 -31 9 V. "hanies in Official Reserves (increase -) , 0d -34 -298 Foreign assets -62 2 Total -96 2 -159 / Mission estimates. hitports figures include net imports of non-monetary gold (LL 11 million in 1966, and LL 9.h million in 1967). I.llude, re-exports. Soure: .tnistry of Planning; Central Statistical Office - and mission estimates. Table 3.2 COMPOSITION OF FOREIGN TRADE /1 (in millions of Lebanese pounds) 1966 1967 1968 1969 L2 Imports Live animals and animal products 122 116 13 130 Other foodstuffs 263 289 267 294 of which: cereals (83) (89) (81) Oineral and chemical products 242 243 304 321 Wood and paper products 94 75 95 107 Textiles, leather.and shoes 227 1v8 226 247 Precious metals and stones, and jewelry 386 360 307 291 metals and metal products 157 132 11 170 fiachinery 215 208 188 230 Transport equipment 126 85 127 120 Other 83 63 76 80 Total 12913 12769 1,865 1,993 Exports / Live animals and animal products 30 35 42 35 of which: dairy products (16) (21) (26) Other foodstuffs 108 136. .143 144 of which: fruits (59) (72) (79) vegetables (23) (29) (22) Mineral and chemical products 22 28 41 69 Wood and paper products 22 23 27 31 Textiles, leather and shoes 44 50 57 71 Precious metals and stones, and jewelry 57 92 71 39 Metals and metal products 25 25 35 42 Viachinery 28 26 38 51 Transport equipment 19 21 32 10 Other l 17 24 33 Total 369 453 510 55 /1 Customs basis 7/ Provisional ZI -Excluding re-exports Source: ministry of Planning; Central Statistical Office. Table 3.3 EXCHANGE RATE MOVEMENTS, 1966-1970 (month-average; LL per 1965 1957 1968 1959 1970 January 3.08 3.18 3.13 3.20 3.27 11arch 3.09 3.20 3.15 3.24 3.31 June 3.12 3.24 3.15 3.28 September 3.20 3.23 3.17 3.27 December 3.17 3.1h 3.17 3.24 Source: Ministry of Planning; Central Statist4cal Office. Table h.1 PREL*IITNARY LEBANON - EXTERNAL PUBLIC DEBT OUTSTANDING AS OF DECEMBER 31, 1969 /1 Debt Repayable in Foreign Currency (In thousands of U.S. dollars) Debt outstanding December 31, 1969 Source Disbursed Including only undisbursed TOTAL EXTERNAL PUBLIC DEBT 59s916 22,949 Suppliers - France /2 1,375 18,9184 Loans from international organizations -IBRD 19,729 19,729 Loans from governments 38 810 58 036 France 1501,3 Germany 138 138 Kuwait 30,800 30,800 United States 6,372 15,667 /1 Debt with an original or extended maturity of over one year. 7 An amount of $16,809,000 is subject to further negotiations and it may not be utilized. Notei Actual amounts outstanding have not been reported by Lebanon. 'This table is based on estimated repayment schedules supplied by Lebanon and on a summary debt table compiled by the Lebanese authorities and brought back by our mission. Statistical Services Division Economics Department June 19, 1970 Table 4.2 PRELIMINARY LMBANON - EST13RATD FUTURE SERVICE PAYKENTS ON EXTERNAL PUBLIC DEBT OUTSTANDING INCLUDING UNDISBURSED AS OF DECEMBER 11, 1969 Debt Repayable in Foreign Currency (In thousands of U.S. dollArs) Page 1 DEBT OUTST (BEGIN OF PERIOD) PAYMENTS DURING PERIOD INCLUDING AMORT.T- YEAR UNDISBURSED ZATION INTEREST -TOTAL TOTAL EXTERNAL PUBLIC DEBT 1970 66,739 7,293 3,16 1o,439 1971 59,h46 8,b28 2,755 11,183 1972 51,018 8,16 2,315 10,461 1973 h2,872 6,003 1,929 7,937 197h 36,864 6,078 1,626 7,704 1975 30,786 6,0hh 1,36h 7,h08 1976 24,742 h,736 1,065 5,801 1977 20,006 h,851 -856 5,709 1978 15,151 4,6b1 6h 5,282 1979 10,512 h,158 40 h,798 1980 6,15h 3,898. 218 4,1h6 1981 2,256 1,199 100 1,599 1982 757 659 37 696 1983 98 98 7 105 Note: Includes service on all debt listed in TPble 1 prepared June 19, 1970 with the-exception of the following for which repayment terms Pre not available: TOTAL 29,210,000 Suppliers - France 16,809,000 Loans from governments 12,h01,000 France 4,501,000 United States 7,900,000 Table h.2 PRELIMINARY LEBANON - ESTIMATED FUTURE SERVICO-PAYMNMTS ON EXTERNAL PUBLIC DEBT OUTSTANDING; IN2JCLUTDIN 17DISBURSED AS OF DECFE%R 31, 1969 Debt. Repayable in Foreign Currency (In thous.-inds of U.S. dollprs) Page 2 DEBT OUTST (BEGIN OF PERIOD) PAYMENTS DURING PERIOD INCLUDING AMORTI- YEAR UNDISBURSED ZATION INTEREST TOTAL SUPPLIERS FRANCE 1970 1,375 98 103 201 1971 1,277 99 96 195 1972 1,178 98 FS 186 1973 1,080 98 81 179 1974 982 99 7h 173 1975 883 98 66 16h 1976 785 98 59 157 1977 687 98 52 150 1978 589 98 hh 1h2 1979 691 98 37 135 1980 393 98 29 127 1981 295 99 22 121 1982 196 98 15 113 1983 98 98 7 105 LOANS FROM INTERNATIONAL ORGANIZATIONS - IBRD 1970 19,729 1, bo2 921 2,323 1971 18,327 1,471 852 2,323 1972 16,856 1,5h2 782 2,32L 1973 15,31h 1,615 709 2,32h 197h 13,699 1,693 630 2,323 1975 12,006 1,77h 549 2,323 1976 10,2 3 1,859 464 2,323 1977 8,373 1,9t7 375 2,322 1978 6,L26 2,0l2 282 2,324 1979 h,386 2,11 183 2,32h 1980 2,243 2,2h3 80 2,323 Table i. 2 FRE"IMINARY LEBANON - ESTIMATED FUTURE SERVICE PAYMENTS ON EXTERNAL PUBLIC DEBT OUTSTANDING INCLUDING UIDISBURSED AS OF DECEMBER 31, 1969 Debt Repay,ble in Foreign Currency (In thousands of U.S. dollars) Page 3 DEBT OUTT (BEGIN OF PERIOD) PAYMENTS DURING PERIOD INCLUDING AMORTI- UNDISBURSED ZATION INTEREST TOTAL LOANS FROM GOVERNMENTS 1970 h6,635 5,793 2,122 7,915 1971 39,8h62 6,858 1,806 8,664 1972 32,981 6,506 1,hh5 7,951 1973 26,78 h,295 1,139 5,434 197h 22,183 h,286 922 5,208 1975 17,897 1,172 79 h,921 1976 13,725 2,779 542 3,321 1977 10,96 2,808 h29 3,237 1978 8,138 2,501 315 2,816 1979 5,637 12,119 220 2,339 1980 3,518 1,557 139 1,696 1981 1,961 1,400 78 1,478 1982 563 561 22 583 FRANCE 1970 6,910 l,lhO 175 1,615 '1971 5,790 1,186 390 1,576 1972 h,60h 1,186 301 1,487 1971 3,1118 1,186 212 1,398 197h 2,232 1,186 123 1,309 1975 1,016 1,Oh6 78 1,124 Table h.2 PRELTMINARY LEBANON - ESTTM-%7T) FUTITRE SERVTCE PAYENTS ON EXTERNAL PUBLIC DEBT OUISTANDING INCLUDING UNDISBURSED AS OF DECEMBER 31, 1969 Debt Repnypble in Foreign Currency (In thousands of U.S. dollars) Page l DEBT 0113r (BEGIN OF PERIOD) PAYMENTS DURING PERIOD INCLUDING AMORTI- UNDISBURSED ZATION INTEREST TOTAL IANS FROM GOVERNMENTS GERMANY 1970 138 34 h 38 1971 104 34 3 37 1972 70 3A 2 36 1973 36 36 1 37 KUWAIT 1970 30,800 2,531 1,185 3,716 1971 28,269 1,%b8 1,087 h,635 1972 2h,721 4,56h 950 5,514 1973 20,157 2,351 771 3,122 1974 17,806 2,377 682 3,059 1975 15,h29 2,h03 592 2,995 1976 13,026 2,A30 500 2,930 1977 10,596 2,h59 h08 2,867 1978 8,137 2,501 315 2,816 1979 5,636 2,119 220 2,339 1980 3,517 1,557 139 1,696 1981 1,960 1,400 78 1,478 1982 560 560 22 582 Table L.2 PREIMINARY LEBANON - ESTMTED FUTHE.SERTICE PAYMENTS ON EXTERNAL PUBLIC DEBT OUTSTANDING INCLUDING UNDISBURSED AS OF DECEMBER 31, 1969 Debt. Repay;bA in Foreign Currency (In thousnrds of U.S. dollars) Page 5 DEBT OUTST (LEGIN OF PERIOD) PAYMENTS DURING PERIOD INCLUDING AMORTI- YEAR UNDISBURSED ZA'lION TOTAL LOANS FROM GOVERNMENTS UNITED STATES 1970 7,767 2,088 658 2,546 1971 5,679 2,090 326 2,416 1972 3,589 722 191 913 1973 2,867 723 155 878 197L 2,146 723 117 8LO 1975 1,1121 723 79 802 1976 698 349 42 391 1977 349 39 21 370 Statisticil Services Division Economics Department June 19, 1970 Table 5.1 CNT rAL GOVERM T i&fVHWU3 BY SOUR 3 (in millions o' Leoanese pounds) Actuals Budget -stimates 1966 1967 1 196 1909 1970 I. Direct Taxes: Building tax 31.7 36.8 U1.2 37.0 bl.0 47.0 Income tax 58.7 63.2 62.6 70.0 66.0 63.0 Inheritance tax 2.4 3.0 3.6 5.5 L,.5 h.5 Total 92.J 103.0 107.1 112.5 111.5 116 .5 II. Fees and Dues: Taxes on legal action h.6 4.1 5.7 5.3 5.2 6.5 Registration taxes 26.3 21.1 23.2 24.0 20.0 2h.0 Stamp taxes 17.9 19.9 27.2 28.3 28.0 30.0 Traffic fees 2.8 1.el .0 4.0 3.0 4.5 iiscellaneou- 4.0 . I .; .6 7.7 /1 .7 /1 Total 53.7 50.6 6b.3 66.2 T3.9 73.7 III. Consumption Taxes: Customs duties 176.3 16.1 177.6 178.2 17.0 192.0 Tax on cars 11.3 10.8 15.7 14.2 1)1.0 17.0 Tax on gasoline, etc. 52.3 55.4 58.4 54.0 65.0 6)4.0 Tax on tobacco 28.3 32.7 33.7 32.0 36.0 40.0 Tax on cement 5.3 5.2 4.9 5.5 5.0 5., Tax on alcoholic beverages 2.1 1.7 1.7 2.2 2.2 2.0 Others 7.0 5.9 1.9 2.1 2.3 2.5 Total 282.5 257.8 293.9 288.2 302.5 322.6 IV. Revenues from Government properties and enterprises 14.5 15.1 16.9 16.8 16.b 20.3 V. Petroleum royalties 30.7 33.9 3L.3 35.0 35.0 31t.0 VI. Revenues on concessions 16.b 13.9 11.h 16.1 7.)1 3.7 'iII. Deductions for retirement 10.5 12.9 13.5 13.5 15.0 1".o V11I. Others 23.A 33.4 a1.3 22.9 35.3 /2 h1.6 Tota. ?evenue 424. 520.6 573.0 571.2 9 7.0 2P..I Total Expenditurc 57.7 591. 602.5 ht .L l.5 7.- .0 Deficit 23.2 70.P 29.5 77.3 73.5 100.5 _J1 Irncludtnr. now tax on lcavlnr Lcbanese territory equivalent to LL 4 million. "' Surplus of Telephone Administration and Office of Cereals. -OLrce: t.inistry of tFinance Table .2 CENTRAL GOVERNMENT EXPENDITURE BY iLNISTRY (in millions of Lebanese pounds) Actuals Budget Estimates 1966 1967 19't 19.b 1969 1970 Presidency of the aepubiic 0.8 .0.9 0.9 0.9 0.9 0.9 Parliament .13 .1 3.9 3.7 3.9 Presidency of the Council of r.inisters 13.0 .2)1.1 25.9 25.7 22.2 25.2 ninistry of Justice 10.3 10.8 10.3 10.6 12.5 13.1 ninistry of voreign Affairs 22.4 26.8 15.8 26.8 25.1 25.8 :inistry of Interior 1d. J"0 5. . 3.8 S3.1 52.0 55.6 iinistry of Finance 20.3 21.2 20.9 22.4 23.5 22.7 Ninistry of Defense 105.9 121.9 127.1 135.9 160.0 171.8 ;iniscry of :ducation 62.c 90.F" 95.2 101.5 112.1 123.7 rInistry of Public Health 19.2 20.7 21.6 23.5 22.0 22.6 rministry of Labor and Social Affairs 18.h 12.7 1h.i 13.9 12.9 13.2 .!inis-ry of Information 10. 6.0 6.8 7.2 6.5 6.7 ninistry of Public Work 133.5 96.5 102.1 .101.9 76.3 106.6 linistry of Agriculture 16.2 16.7 16.2 16.1 15.1 20.0 Linistry of National Economy .2.1 -t2.b 2.3 2.1 ^2.4 2.4 fiinistry of P.T.T. 9.4 10.6 10.1 11.7 11.3 13.1 ilinistry of Planning 2.2 2.0 2.1 2.6 2.4 2.5 ;inistry of Tourism - 1.0 14.8 13.4 10.9 11.8 Ninistry of Electricity and Water - 31.h 26.3 21.3 17.7 26.6 Public Debt (mostly pension payments) 32.4 29.h 32.1 32.3 h3.7 44.o Unallocated expenses - - - 21.4 26.7 16.7 Total expenditure 57.7 591. 602.5 61j8.5 660.5 728.9 Source: i-inistry of Finance. Table 9.3 REVENUE AND EXPENDITURE OF THE AUTONOIIOUS AGENIIES (in millions of Lebanese pounds) 1966 1967 1968 Revenue E Revenue E Revenue p Office de l'Electricité 58.5 56.5 63.3 64.0 81.8 81.8 Office du Litani 21.8 23. 29.6 26.8 21.1 21.1 office des Chemins de F'er /l 19. 21.1 22.1 24.0 25.4 25. Office de la Reconstruction 21.8 20.8 24.3 22.8 24.5 21.8 Office du Développement Social 11.4 9.3 10.2 13.1 13.2 13.2 Office des Eaux de Beyrouth 8.6 6.3 9.1 17.8 9.8 9.8 Office des Recherches Scientifiques Agricoles 3.0 3.3 5.5 3.7 4.5 4.5 Office Fruitier 2.6 1.6 9.3 3.1 8.4 7.) office de la Soie 1.5 1.5 0.7 0.9 1.6 1.6 Office des Eaux Ain El Delbé 1.4 1.3 1.4 1.5 1.6 1.6 Office des Eaux de Tripoli 1.1 1.0 1.2 0.9 1.3 1.2 Office des Eaux de Barouk 1.2 1.2 1.2 1.2 1.3 1.3 Office des Eaux de ..etn 0.6 0.6 0.6 0.5 0.7 0.7 Office de l'Irrigation de Kasmish-Ras-El-Ain 0.4 0.1 0.4 0.4 0.5 0.4 Office des Eaux de Kesrouan 0.5 0.14 0.5 0.4 0.5 0.5 Office des Eaux de Jabal Amal 0.4 0.4 0.J4 0.h 0.4 0.3 Office des Eaux de Sour 0.3 0.2 0.3 0.3 0.4 0.1 Office du Port de Tripoli 0.4 0.5 0.6 0.7 0.6 o.6 Office de la Cité Sportive 0.3 0.3 0.3 0.3 0.h 0.3 Office des Eaux de Saida 0.3 0.3 0.14 0.4 0.4 0.4 Office des Eaux de Zahlé 0.2 0.2 0.3 0.3 0.3 0.3 Office de la Production Animale - - 0.3 0.2 1.0 0.4 Administration du Télépohone 32.4 28.0 32.5 28.9 35.4 29.0 Administration de la Loterie Nationale 15.4 14.8 16.9 15.5 17.1 15.9 Office du Blé 2.7 1.3 5.2 1.5 10.8 2 9.0 /2 Université Libanaise 2.6 4.2 4.6 6.0 4.6 6.3 208.8 198.9 241.2 235.6 267.6 255.2 oiRvenue include income from operations, transfers from the Central Government as well as Treasury and other loans; it excludes drawings on the agency's reserve fund. Expenditure includes administrative and operating expenses, capital expenditure, repayments of loans and advances, aid transfers to the Central Government; it excIudes depreciation allowances and additions to the agency's reserve fuid. Includes public bus service in Beirut. Included fees on sugar and sugar products, equal to LL 6.5 million. r inistry of Finance. Table 6.1 ASSETS AND LIABILITIRS O THE BA(NK OF LEBANON (in millions of Lobanese pounds) At end of December: 1956 1967 1968 1959 Assets Gold 594 594 886 886 Foreign exchange /2 275 268 134 187 Claims on Government -3 78 72 70 65 Claims on private sector 3 81 76 74 69 Claims on commercial banks 166 219 91 133 Special claims A - - 136 178 Total assets 12194 1,229 1,391 1518 Liabilities Currency 834 9h5 1,127 1,172 (of which: outside banks) (645) (786) (834) (868) Government deposits 308 209 177 255 Capital and reserves 19 23 26 28 Other items (net) 33 52 61 63 Total liabilities 194 1,229 1,391 1,518 1 Excluding net I'LF position /2 This item represents book losses resulting from a revaluation of foreign assets. 3 Excluding commercial banks; this item largely represents a LL 70 million credit extended to BCAIF by the Banque de Syrie et du Liban and taken over by the Bank o' Lebanon. /h Claims resulting from bank seizures performed under the law of may 9, 1967. Source: Ministry of Planning; Central Statistical Office. Table 6.2 ASSETS AND LIABILITIES OF THE COMMERCIAL BANKS (in millions of Lebanese pounds) At end of December 1966 1967 1968 1968 1969 Assets Liquidities 188 149 291 287 297 Foreign assets 1,584 1,317 1,626 1,574 1.,641 Claims on private sector 2,336 2,285 2,297 2,028 2,132 Claims on public sector - 40 69 60 118 7,10 3,791 423 3,949 8 Liabilities Demand deposits 894 782 922 909 787 Time and foreign currency deposits 1,891 1,784 2,081 1,721 2,062 Foreign liabilities 820 612 592 903 834 Other items (net) 503 613 688 416 5o5 Breakdown of claims on private sector Agriculture 132 131 133 Industry 341 382 402 Construction 212 229 249 Trade and services 1,243 1,240 1,207 ... of which: Foreign trade (349) (380) (368) Domestic trade (564) (549) (543) Other services (172) (171) (170) Consumer credits (157) (140) (127) Financial institutions 143 135 121 .. Other 264 168 185 Total 2,336 2,285 2,297 2,028 2,132 /1 Adjusted series excluding the accounts of banks taken over under the Law of may 9, 1967, and those in voluntary liquidation. The series also incorporates an improved classification of accounts as between those of residents and non- residents. Source: ministry of Planning; Central Statistical Office. Table 7.1 STRUCTURE OF AGRICULTURAL PR&DUCTION Value of Production Share of Percent (LL million) Area under Agricultural Exported categor- 1966 1967 1966 Cultivation (1968) Production (1955) (195$) (th. of has.) (ereals 2h.9 23.7 17.2 85.7 3 3 of which: wheat (68.1) Industrial CroDs 40.3 [3.2 45.3 16.8 9 16 of which: tobacco (30.9) (7.2) (6) (16) Vegetables 77.3 76.5 69.0 45.5 13 32 Fruit and :ree "rops 188.6 190.2 199.8 5.3 39 40 of which: olives 06*9) citrus (11.0) apples (11.3) zraPes (15.3) Subtota 331.0 333.5 331.3 390.9 0a 33 Livestock and livestock products 159.4 171.4 183.4 36 23 Total 490.4 504.9 51L.7 100 29 Source: ..i-istry of Planning; 'entral Statistical Office. iTable 8.1 NUVIB.R OF BORDER ARRIVALS A D REGIOi OF 2dlI. (in thousands) 1966 1967 1968 19)9 Syria 812 703 790 810 Jordan 13,8 107 166 1B0 Iraq 59 33 77 5Lk Saudi Arabia 38 35 40 43 Kuwait 31 11 26 28 Palestine 22 15 19 23 U.A.R. 2A 23 66 94 Other Arab countries 22 23 32 31 Total Arab countries 1 1b2 950 1 216 1,270 Great Britain 4h 32 30 37 France h5 31 38 34 Germany 32 1F 16 20 Other European countries 79 67 78 81 Total Europe 200 10) 162 172 United States and Canada 101 63 S4 68 Latin America 11 R 9 9 Australasia 6 4 4 5 Asia (except Arab countrics) 38 37 46 55 Africa (except Arab countries) h 11 6 Miscellaneous and undetermined 10 1 3 3 TOTAL 1,515 1,218 1 I99 1_5R_ /1 Exclusive oC transit passengers Source: Conseil National du Tourisme. Table 8.2 BREAKDOWN OF RECEIPTS FROI TOURISn. I1 1969 Number Number Average Average Kind of Lodging of of Average Daily Expenditure Total and Nationality Tourists/1 Ni gts Stay Expenditure per Stay Expenditure MO00 (days) (LL) (LL) (LL mIllion) Beirut Hotels Arabs less Syrians 151,00O 590 3.9 94 367 Non-Arabs 200,700 620 3.1 100 310 '12 Subtotal 351,700 1,210 3.4 97 33> 117 Syrians 57,400 280 h.8 _54 259 Total 409,1C0 1,490 3.6 89 323 132 Other Lodgings Arabs less Syrians 279,300 3,180 U. 37 422 118 Non-Arabs 73,700 590 7.9 51 LC3 30 Subtotal 353,000 3,770 10.7 39 L19 16 Syrians 311,600 21740 8.8 20 175 5 Total 664,6oo 6,$1 19.8 31 305 203 All Tourists Arabs less 3yrians 430,300 3,770 8.7 46 C 173 Non-Arabs 27h,0 1 210 b.h 76 335 Subtotal 70L,700 7.1 77 3?; Syrians 359,000 3,8.3 25 190 1otal 1,073,700 8,000 7.4 22 312 335 Others !xcursionnists, plane crews, truck drivers Non-resident students Total Expenditure 3C /1 Excluding seasonal workers, mainly Syrians. Sr)Urce: Conseil National du Tourisme. Table 9.1 PRIC7 INDICES .Jholesale Price Indices (yearly averages; 1950 = 100) rood- i?aw Combus- Construction Other All Stuffs iiat. tibles Textiles i aterials ?roducts r-6roduct 1966 111 98 117 103 102 133 110 1967 122 99 117 105 10 134 115 1968 117 102 121 105 103 132 11) 1969 123 108 123 109 117 144 120 Retail Price Indices (monthly averages; 1966 = 100) ,oodstuffs Textiles All Products 19 8 1969 1970 1958 1969 1970 1968 19t9 1970 January 108 .109 111 ... 111 114 105 106 108 February 111 113 115 ... 111 114 106 108 109 riarch 111 118 115 ... 112 114 lo6 110 110 December 107 105 ... ... 103 106 Source: inistry of Planning; Central Statistical Office.