The escalating tensions between Israel and Hezbollah have delivered a severe blow to Lebanon's tourism sector, with approximately 90 percent of expatriate reservations to Lebanon being canceled, according to Pierre Ashkar, head of the Syndicate of Hotel Owners in Lebanon.

At the end of July, the impact on Lebanon's hospitality industry became starkly evident. The restaurant sector experienced a 40 percent drop in demand, while the hotel sector saw an even steeper decline, with a 60 percent decrease in reservations. 

Ashkar warned that this downturn could have catastrophic consequences, particularly for the labor market and the broader national economy.

"The hotel sector could witness many closures and layoffs after summer," Ashkar told the National News Agency, noting that Lebanon has been in a "state of emergency for nine months," with the tourism sector struggling to survive amid the ongoing crisis.