How are some Lebanese businesses dealing with the loss of customers and markets in light of the unforgiving war waged by Israel? Jackson Allers reports from Beirut.

War is never cheap. For Lebanon in particular, the conflict with Israel has been a costly one. Israel has unleashed the full arsenal of its military might, destroying large swaths of civil and manufacturing infrastructure.Government estimates put the number of internally displaced in Lebanon at around 800,000 or roughly one fifth of the population. By all accounts, the financial drain from the loss of consumers and the re-routing of government resources to the care of refugees is overburdening the already cash-strapped treasury.

Despite the empty streets in major cities and towns throughout Lebanon, elements of the Lebanese business sector have shown a remarkable sense of adaptation to the war. Grocery stores, corner markets, shish kebab stands and moneychangers remain open despite dwindling supplies. Some businesses, like the well-known family owned Barbar food chain, have even seen an increase in business during the hostilities. People in Lebanon have gained a reputation for maintaining normality during wartime.

Lebanon’s economy, which had undergone a massive transformation in the 16 years since the end of the 1975-1990 civil war, was expected to grow by an estimated 6% this year. At a minimum, a prolonged Israeli military offensive threatens to shrink Lebanon’s economy by more than 3% percent amid a national public debt of around $40 billion, or 180 % of the Lebanese gross domestic product.

The future for many Lebanese industries now looks bleak. On the streets of Beirut, scores of businesses are closed indefinitely. Many businesses that expected a financial windfall this summer are now weighing their prospects for survival.
The country is also coping with the loss of an expected tourist boom that promised to bring in substantial revenues. “The Lebanese business sector spent tens of millions of dollars preparing for this summer,” Mr. Haddad said. “We expected 500,000 visitors between June and September. Conservatively we calculated that Lebanon would earn more than $2 billion.”
Mr. Haddad added,  “If we experience 0% growth rate this year, we now consider that it will be an achievement. It is a tragedy.”

Bilal al-Amin spent thousands of dollars and more than three months preparing for the summer opening of a café restaurant in the west Beirut neighborhood of al-Hamra. The war postponed the July 18 opening date of his café, and Mr. al-Amin had to turn to other ways of making money to make up for his financial losses.