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Middle East Tobacco Update - Sample Issue June 16, 1999 In This Issue:
 World Anti-Smoking Day Marked On May 31, 1999, Anti-Smoking Day was recognized throughout the world. This event was also acknowledged in the Middle East in general, and in the Gulf States in particular. In cooperation with the World Health Organization, anti-smoking activities, seminars and lectures were organized by both the private sector and government agencies. Egypt Sales of Duty-Free Cigarettes Unaffected by Recent Decision Since June 9, the volume of duty free sales at Cairo International Airport has been experiencing a sharp agitation. This development has been mainly due to the recent decision by the Trade and Supply Minister to eliminate the customs' exemption on goods that are sold at duty free shops, and to restrict the duty free exemption (which had been $200 per person) to goods that are not available at duty free shops. Many debates have surfaced between returning citizens and customs officials regarding the decision to grant passengers a period of merely 24 hours from the return date to purchase their duty free needs. Passengers have indicated that this is not a sufficient amount of time. Due to this new decision, sales of duty free items at Cairo Airport have posted a steep decline. In the passenger return hall of Terminal 1, these sales now amount to merely $3,000 per day. However, reports indicate that cigarette sales have not been affected, nor have the sales of alcoholic beverages and perfumes. The main area in which sales have declined is household electronic items, where the customs' exemption was removed. Iran Bid To Assist World Health Organization In Battling Smoking And Raising Awareness Last month, Iran's Health Minister Mohammad Farhadi announced that his country had informed the 52nd annual General Assembly of the World Health Organization (WHO) in Geneva of its willingness to collaborate with the WHO in the war against smoking. Farhadi stated that this meeting, which was attended by health ministers and representatives from 190 different countries, had labeled cigarette smoking as the number one cause of deaths throughout the world. Farhadi proclaimed that Iran is committed to assisting the organization realize its objectives. Smoking Statistics A recently released report reveals that approximately 20 percent of Iranian adults are smokers. The number of smokers above the age of 20 currently stands at 6 million. According to this data, in rural areas 23 percent of men and 7 percent of women consume tobacco, while the corresponding statistics in urban levels are 32.3 percent and 5 percent respectively. Saudi Arabia Call to Restrict Tobacco Sales to Minors under the Age of 21 A recent editorial in the Saudi press has outlined ways to halt the rapid increase in cigarette smoking among the Kingdom's youth. The article states that it is very difficult to find young Saudi adults who do not smoke cigarettes. According to the editorial, there has been an increase in the number of smokers and a substantial rise in quantities of tobacco imported to the Gulf region. Local physicians indicate that the health damages from smoking are constantly rising, and that the incidence of deaths resulting from smoking addiction is three times higher than those caused by road accidents. In Riyadh, the capital of the Saudi Kingdom, the number of smokers has augmented by 30 percent during the past five years. The editor believes that smoking has become a grave social ill. The article elaborates on the health risks associated with smoking, and states that it is necessary to crystallize a policy that will limit the spread of smoking among youth. Such regulation could include increasing the tax on tobacco products and on places where people sit and smoke, and expanding the resources devoted to publishing the dangers of smoking at local schools. A more effective measure would be to ban the sale of cigarettes to minors under the age of 21, and to legislate that those minors would be banned from entering smoking houses and cafes, the editorial concluded. Qatar Custom Duty on Tobacco Imports Hiked In early April, Qatar's Emir Sheikh Jassem bin Hamad al-Thani issued a decree approving a customs hike on tobacco and tobacco related products. Article (1) of this legislation prescribes that customs levied on imports of tobacco and its derivatives, including both manufactured products and raw materials, shall be raised by 100 percent. This ruling also asserts that decree (22) issued in 1991, and any other provisions that are contrary to the new legislation, are to be null and void. Health Minister Lashes out at Local Tobacco Advertising During a recent speech marking World Anti-Tobacco Day, Qatar's Public Health Minister, Dr. Hajar Ahmed Hajar al-Benali, sharply criticized local newspapers for publishing tobacco advertisements every day. Dr. Hajar pointed out that numerous countries had already banned tobacco promotion in all types of media, and he hoped that the Gulf States would follow this example and prohibit such advertisements in all newspapers. Recent Seminar Addresses Smoking Related Diseases Doha's Center for Environment Friends (CEF) recently sponsored a seminar dealing with the dangers associated with smoking. The conference's keynote speaker was Dr. Ahmed Kotop of Qatar's Ministry of Health, who is a specialist on smoking-related diseases. Dr. Kotop presented the hazards of smoking to the smoker, to members of the smoker's family, and to society as a whole. According to Dr. Kotop, the toxic fumes exhaled by the smoker are even more lethal to non-smokers than to the actual smoker, thus making smoking a deadly social evil. He stated that smoking-related diseases and deaths are rising each year, and thus society must develop a well-organized program to educate the country's youth of the dangers of smoking, and provide effective programs to help smokers quit. A special feature of the conference was the live testimony of former smokers who had successfully kicked the habit. These ex-smokers described the significant savings that they accumulated once they had "stopped burning money in a useless habit." Oman Sultanate Observed Anti-Smoking Day The Sultanate of Oman, along with international health organizations and other countries, observed the World Anti-Smoking Day on May 31. The Ministry of Health marked the day by organizing many events under the motto "Refrain from Smoking", which presented the health dangers posed by smoking. The health authorities utilized seminars, lectures, debates, posters and publications to spread anti-smoking awareness throughout the Sultanate. Moreover, the Health Ministry initiated a competition among smokers entitled "Stop Smoking and Win." Based on this contest, successful participants who can medically prove to have refrained from smoking for four consecutive weeks will be awarded prizes. United Arab Emirates Rothmans Introduces New Cigarette Brand During a celebration that was recently held at the Dubai Bustan Rotana Hotel, the International Rothmans Company introduced a new cigarette brand called "Peter Stuyvesant." This new cigarette brand, which contains a "unique" American blend, will be distributed throughout the Gulf markets. The "Peter Stuyvesant" cigarette is one of the new trademarks that have lately been added to Rothmans' product line. According to a Rothmans' spokesperson, this cigarette blend offers Gulf consumers a unique taste through a rich tobacco mixture. Moreover, the new cigarette is being marketed in an attractive blue package with a special protective internal cover. Mr. Scott Hill, Marketing Manager of Rothmans in the Middle East and South Asia, said that the internal protective wrapper preserves the cigarette's taste after the pack is opened. Teenage Smoking on the Increase According to local experts, roughly 70 percent of teenagers, both expatriates and nationals, are smokers. Moreover, the number of young smokers in the UAE is augmenting rapidly, which proves that the anti-smoking message being promoted by health departments and social organizations is not having its desired impact on target groups. According to market sources, although the Government is planning to increase the price of cigarettes, this measure would not have a serious impact on reducing the number of smokers, especially among the youth. These sources claim that much of the blame should be accredited to cigarette advertising on television and cinema screens, where smokers are depicted as "macho." Campaign Unleashed to Target Tobacco-Based Chewing Products In late April, a massive campaign was launched throughout Dubai to eliminate the sale of guthka and other tobacco-based chewing products, which are used predominantly by Asian expatriates. A wide-scale search was recently conducted in local grocery stores and restaurants, and a Dh 500 fine is being imposed on anyone found spitting on streets and in public domains. In December 1998, the Dubai municipality announced that an award of Dh 2,000 would be granted to anyone who provided authentic information about shops or other places where paan and related products were being sold. (Dh3.67=$1). Price Hike Complements Anti-Smoking Campaign Throughout the Gulf States, there is a drive to incrementally raise customs duties on tobacco products by 100 percent by the year 2000. As part of this campaign, in mid-April retailers in the United Arab Emirates unexpectedly raised the price of cigarettes by Dh 1 per pack and by Dh 10 per carton. Following this price increase, which was implemented two months ahead of schedule, the price of a pack of cigarettes now ranges from Dh 3.50 for the cheapest brands to Dh 6 for higher scale varieties. (Dh3.67=$1). Smoking Termed "Un-Islamic" A few days ago, the Ministry of Justice, Islamic Affairs and Waqf in the United Arab Emirates stated that the smoking and selling of tobacco are violations of Islamic law. This announcement was made by imams during Friday public prayers at mosques throughout the Emirates. These religious leaders used a text prepared by the Ministry, which quoted the Holy Koran to demonstrate that any activity that endangers human life is prohibited. Furthermore, smoking harms the national economy, since resources must be devoted to fighting smoking-related illnesses. Despite the prevalence of smoking throughout the Emirates, increasing efforts are being made to fight the use of tobacco. The Ministry warned that smokers who refused to give up the habit ran the risk of "leaving Islam." The Ministry also urged officials to "consider the ruling as a point of departure to prohibit tobacco use and to help smokers quit." Bahrain Concern of Tobacco Addiction Bahrain used the theme "Leave the Pack Behind" to mark the recent World Anti-Tobacco Day. Deputy Director of Health Education Dr. Salah Ali warned that the number of smokers in Bahrain was on the rise, and called for a joint strategy to combat this phenomenon. According to Dr. Ali, this strategy involves complete cooperation between the health, education and media sectors, and the involvement of religious authorities and legislators to put an end to "this growing danger." Dr. Ali confirmed that tobacco smoking is harmful to everyone, smokers and non-smokers alike. He voiced concern over the innovations of tobacco companies, which constantly develop new and attractive campaigns and promotions to lure younger people to become addicted to smoking. Local Press Reports on Dangers of Maternal Smoking Recent local press reports have described the dangers of smoking during pregnancy. These articles noted that higher rates of fetal and infant deaths are associated with pregnant mothers who smoke. Maternal smoking is also connected with medical complications, such as bleeding during pregnancy and premature delivery. Maternal smoking affects fetal growth, causes an average birth weight reduction of 200 grams, and doubles the incidence of low-weight babies. Smoking is also considered an independent risk factor for the sudden infant death syndrome. Gulf States Tobacco Duties and Warnings for Smokers to be Standardized During a gathering of the Gulf Cooperation Council (GCC) Health Ministers at the 52nd World Health Assembly meeting in Geneva between May 17 to 25, a proposal brought forward by Saudi Arabia's Health Minister was agreed upon. This recommendation suggests standardizing the levy imposed of tobacco products, whereby 5 percent of these funds would be allocated toward anti-smoking efforts. This proposal will soon be presented to the respective governments for approval, and to set up the appropriate mechanisms to implement it. During their meeting, the GCC Health Ministers also decided to request that tobacco companies print a warning on their products of the dangers of smoking. The Ministers are set to study the concept of registering cigarettes at Health Ministries in member states, in a similar manner to medical products, in order to tighten the existing monitoring systems on tobacco, in addition to fortifying the mechanisms for collecting levies. Revenues from Custom Duties on Tobacco Reviewed According to local industry experts, the nations of the Gulf Cooperation Council rank among the highest cigarette consuming countries in the world. These states import close to 30 billion cigarettes per year, worth over $800 million. By next year, revenues from custom duties on cigarettes and tobacco are likely to exceed $1 billion, compared to under $100 million in the mid-1980s. Economists estimate that tobacco taxes will account for over 8 percent of aggregate non-oil earnings, projected at $12 billion in 2000, and more than 20 percent of total customs revenues. Israel Data on Market for Smoking Substitutes Today in Israel, one can find a wide range of accessories, substitutes and methods to quit the smoking habit. Some of these accessories may be purchased from pharmacies and retail stores without a doctor's prescription. Recent research shows that smokers believe that the most effective way to quit is by support groups. The second most popular method is nicotinel stickers, followed by acupuncture and plastic cigarettes. Nicotinel stickers are placed on the arm, and release small and controlled quantities of nicotine. This product is sold without prescription, in three different strengths. The price for these stickers ranges between NIS 118-129 (approximately NIS 4.1=$1). Nicorette chewing gum is sold in two strengths. The cost for a package of gum equals NIS 29.4 for 30 sticks, or NIS 86.7 for 90 pieces. Plastic cigarettes with a menthol taste are sold for NIS 2. In addition, the Anti-Cancer Association runs support groups and workshops for smokers who want to quit. This treatment is being carried out in groups of 10-15 people, and includes 8-10 sessions. The cost of such therapy is NIS 350. The final method to quit smoking is Chinese acupuncture techniques. Some sources indicate that this method achieves high levels of success by the end of the treatment (an approximate 78% success rate); yet, its long-term effectiveness is still uncertain. The cost of acupuncture treatment ranges between NIS 150-250. June – Smoke-Free Month About two weeks ago, and for the first time in years, a new anti-smoking campaign was launched through Israel's TV and radio. This campaign was the initiative of the Anti-Cancer Association, in cooperation with Kupat Cholim Ha'Klalit (Israel's leading health services insurer). In the 1980s, televised anti-smoking drives were a failure, and anti-smoking groups said that based on the high expenditure of these advertisements, the money could be used in more effective ways. Now, however, these same organizers believe that in Israel approaching the year 2000, the electronic media is the most effective channel through which to wage an anti-smoking war, despite its high associated costs. This commercial campaign marked the opening of June as "Smoke-Free Month" in Israel. The operation will focus on the negative estheticaaspects of smoking that affect smokers as well as their close circle of associates. A new study has shown that 57 percent of respondents believed that it is imperative to legislate the minimum age to purchase cigarettes at 18. 53 percent of the respondents stated that they would not date a smoker. Palestinian Authority Expenditures on Tobacco and Cigarettes A recently released report revealed that the average monthly expenditure of Palestinian households reached JD 547 last year. Of this, JD 25 was spent on tobacco and cigarettes (JD1=$1.4). Middle East Tobacco Update believes that this data is lower than actual levels of tobacco spending. For example, smoking among women at home may go unreported in official statistics. Lebanon Lebanon Acknowledges Anti-Smoking Day 1999 Anti-Smoking Day was marked by a nation-wide campaign encouraging smokers to quit before it becomes too late. The Health Ministry and World Health Organization organized this campaign, in conjunction with the local media, the Red Cross, and several NGOs. According to World Health Organization statistics, approximately 4 million people around the world die of smoking related diseases each year, of whom 3,000 pass away in Lebanon. Havana Cigars The Lebanese entrepreneur Muhammed Zaidan is one of the leading promoters of Havana cigars, and since 1994, has controlled 5 percent of global cigar sales. He has been accomplishing this via the company he established approximately 6 years ago, Phoenicia Afro Asia. Due to his success, Zaidan was selected as the "Havana Cigar Man for 1996." Last year, his duty free outlet in the new Beirut International Airport ranked number one in the world. According to Zaidan, based on its population (approximately 4 million), Lebanon is the world's leading consumer of Havana cigars. In terms of sales, it places ahead of Great Britain and Germany, but bewhind Spain, France and Switzerland. Zaidan is the sole distributor of Havana cigars in Lebanon, Egypt and Syria. He hopes that this year, he will sell 7 million cigars. When Zaidan first began his business, he sold no more than 1.35 million cigars. During the construction drive in Lebanon following the civil war, he opened upscale outlets in Lebanon (and also in Egypt). Yet, the flagship of his business is the shop at Beirut International Airport, where 300 various types of Havana cigars are offered. In order to meet the demand for cigars, Zaidan operates a 5,000-square meter warehouse in Belgium. From there, the goods are shipped to the Middle East. Zaidan wishes to establish a monopoly on the duty free market at Beirut Airport, and the initial expenditure on this initiative is estimated at $40 million. Thus far, however, the level of travelers through the airport is not meeting expectations. Furthermore, Lebanese authorities have raised the customs duty on imported cigars from 45 percent to 152 percent. Therefore, Cuba has decided to no longer use Beirut as its Middle Eastern distribution center, and will replace it with either Cyprus or Dubai. Jordan Data on Cigarette Production The following table presents a month-by-month breakdown of cigarette production in Jordan, between January 1998-February 1999. As this data indicates, aggregate production in 1998 amounted to 1.14 billion cigarettes, or a monthly average of 95.35 million. Based on cigarette output in the first two months of 1999, annual production will fall far below last year's total. Jordanian Cigarette Output (in millions of cigarettes)
In the next edition... Further updates on anti-smoking campaigns in the Gulf region, especially in Qatar and Saudi Arabia; cigarette consumption in Lebanon; and recent developments in the Qatari tobacco market resulting from the tax increase. © All rights reserved. No part of this report may be reprinted, reproduced, distributed, or utilized in any form or by any electronic, mechanical, or other means, without the written permission of Info-Prod Research (Middle East) Ltd. Please contact us for additional details and ordering information. |
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