The signs of recovery become visible in hotel and hospitality industry, which had experienced the worst business cycle in the history of Bahrain and reporting as low 5% or even low occupancy rates in March, has seen the occupancy rates rising to double digit in April.
The hoteliers were forced to send their staff in five and four star hotels on annual leaves in March as the protests has brought the hospitality sector at a grinding halt, causing millions of dollars losses and threatening thousands of jobs including the locals.
The hospitality sector which accounted for 18000 jobs with almost 5000 Bahrainis was one of the hardest hit sectors by the protests which lasted for two months in Bahrain.
The measures adopted by the Government under the proclamation of National Safety on March 15th, the law and order situation has improved dramatically in the country. The inter-GCC tourism is on the rebound and the tourists especially from the neighbouring Kingdom of Saudi Arabia start coming back to Bahrain, thanks to the measures taken by the Government by restoring law and order in the last three weeks.
The Chairman of the Economic Development Board HRH Prince Salman bin Hamad Al Khalifa, the Crown Prince in a televised statement said the losses due to unrest already reached hundreds of millions of dollars.
The hoteliers put a tall list before the Government aimed at easing the financial commitments and obligations of the hotels in a zero revenue situation.
Last week the Government freeze the BD10 monthly labour levy for six months, the step seen as a major respite when the businesses were hard pressed due to very little or no business in the market.
“We welcome the Government’s decision for waving off the BD10 per month labour levy on each worker but at the same time there some other areas where we need Government’s help,” Abdul Rahman Morshed CEO National Hotels Company in an exclusive statement said.
Morshed, who is a seasoned hotelier and once the most senior executives at the Diplomat Radssion Blu Hotel, said in addition to labour levy we look forward some help in electricity tariff, municipality tax and sales tax etc which accounts for running costs for each property.
“We need Government’s help in this area for at least six months so the industry can come back to its feet,” he asserted.
Nabeel Kanoo, a leading businessman and the board member at the Bahrain Chamber of Commerce and Industry (BCCI) said the situation demands a major commitment from the public sector. “The tourism needs a clear roadmap after this shock and we need to support the industry internally in Bahrain and to promote it regionally and internationally as well,” Kanoo explained.
Kanoo, who is also Chairman of the Tourism Committee at the BCCI, said that the public private partnership (PPP) model would be the best way to help and salvage this segment of the national economy.
“We also need to seek permanent solutions to the irritants in the social fabric of the society as this will help in maintaining a sustainable development patterns for the national economy,” he added.
The Minister of Industry and Commerce Dr Hassan A Fakhro reaffirmed Government’s support to the hospitality sector as he visited the five star properties.
He confirmed government keenness to hotel sector in the Kingdom of Bahrain, which is considered one of the most important foundation of tourism movement and the main artery of tourism industry in the country.
The Minister visited the hotels in Bahrain including Gulf Hotel, which he was received by CEO Aqeel Raees, Crowne Plaza, which he was received by CEO of Bahrain National Tourism Abdul Nabi Al Dailami, Sheraton Hotel, which he was received by General Manager Carl Hens, and Mercure Grand Hotel, which he was received by Karim Zaki and finally to the Ritz Carlton who met there Mark.
Dr. Fakhro expressed government’s interest to this vital sector and looked forward for this sector to return to normal especially in light of security and safety that witnessed by the country.
Dr Fakhro stressed the importance of cooperation and coordination between various government stakeholders to develop concepts, programmes and visions that help bringing the confidence of tourists back.
General Managers of major hotels praised security procedures taken by leadership and the government to all facilities and economic sites in the country. They stressed their keen to retain human resources, stressing their confidence of leadership and government to return full movement for these facilities.