International Finance Corporation Finances Tourism Projects in Lebanon

The International Finance Corporation "IFC" will provide up to $11.5 million to finance the development of two hotels and four restaurants in Lebanon, says a release of IFC, a World Bank group member which finances private sector investments in developing countries.

The project will be carried out by Lebanon's Idarat Investment Corporation. IFC's financing consists of an equity investment of $1.5 million and a loan of $10 million.

IFC's director for central Asia, middle east and north Africa, Mohsen Khalil, said at the signing ceremony in Washington IFC's financing would provide much needed long-term funding which is crucial to the rehabilitation of tourism. He added that Idarat has demonstrated the ability to provide high quality and innovative services in the hospitality industry.

IFC release went on that before the outbreak of the war in Lebanon in 1975, tourism was a flourishing industry, accounting for 20 percent of the Lebanese GDP. The war heavily damaged the tourism industry, especially quality hotels in Beirut's hotel district. Today, tourism represents only 7 percent of the GDP.