Rebound hopes for hospitality, tourism sector

TDT | Manama

Bahrain’s hospitality and tourism sector is bracing for expected losses amounting to BD500 million this year due to the coronavirus (COVID-19) crisis, according to leading industry experts. This was revealed yesterday in a webinar organaised by Enma Management, featuring H&J The Experts in Hospitality CEO and owner and Bahrain Chamber of Commerce and Industry hospitality and tourism committee member Hameed Al Halwachi, along with Al Areen Investment Co CEO Dr Essa Faqeeh.

Al Halwachi said that the Kingdom’s hospitality and tourism sector generates a total revenue of BD1 billion a year, which is 6.8 per cent of the GDP, while providing 58,000 jobs. He added that the expected losses will mainly come from the airline industry at BD400 million, while BD100million in losses is expected for hotels, travel agencies, event management companies and other related businesses.

The total losses for Gulf carriers is estimated at nearly $7 billion, while up to 346,900 employees in the airline industry across the GCC may be affected by the crisis. Al Halwachi further noted that a number of airlines worldwide have filed for bankruptcy. He added that global losses for the hospitality sector alone is expected to be $25 billion.

In Bahrain, hotel occupancy is forecast to rise to 55 per cent this year from 45 per cent in 2019 and 42 per cent in 2018; but in order to reach this number, at least a partial opening of the market is required, said Al Halwachi.

Estimated occupancy in 2021 is expected to be at 25 to 30 per cent for hotels in the city and 45 to 50 per cent for seafront hotels, but these can only be expected with the resumption of operations at the King Fahd Causeway and that of international flights.

On his part, Dr Faqeeh explained that several policies and strategies can be taken by hospitality and tourism businesses to survive during the current crisis, such as controlling expenses, reducing the number of employees, renegotiating with creditors and deferring loan repayments.

But what is most crucial, he said, is to regain the confidence of clients and adjusting to the times by creating packages that suit the local market, reducing rates, and entertaining direct sales and marketing. While addressing all of these, the safety of gusts and employees must remain the number one priority.

Dr Faqeeh also noted that the planned re-opening of the King Fahd Causeway after Eid Al Adha will help in short-term recovery; while in the long term, several projects will be crucial such as the completion of a new, state-of-the-art exhibition and convention centre in 18 months in Sakhir, as well as a sports city and a railway line connecting GCC countries.