Sheikha Mai Bint Mohammed Al Khalifa, Minister of Culture and Information, Bahrain MANAMA – The hospitality sector in Bahrain is showing signs of recovery as Saudi Arabian tourists begin to return to the island state after months of political unrest, according to analysis by consultants at CB Richard Ellis. In May, in a bid to boost the beleaguered hotel sector, Bahrain's government waived its levy on hotels in the country for three months from July. The government's cabinet said the five percent fee levied on hotel services would be scrapped from July 1 to Sept.1, as part of the efforts being exerted to boost the tourism sector, which has been rocked by recent uprisings. The hotel sector in Bahrain was one of the main industries hit by the political unrest that engulfed the country in February and some hotels reported occupancy rates had fallen to as low as five percent. Sheikha Mai Bint Mohammed Al Khalifa, Minister of Culture and Information, Bahrain was quoted earlier saying that “we first need to develop and showcase our rich heritage and culture and then embark on a strategy to market Bahrain to the region and the rest of the world.” The Tourism Affairs at the Ministry of Culture and Information is the main body responsible for tourism marketing, promotion, licensing, quality assurance, research & statistics as well as product development. Its mission is to develop an innovative, dynamic and sustainable tourism industry that is flexibly responsive to customer preferences, community values and business needs, contributing strongly to the socio-economic development of Bahrain. The canceling of the Bahrain Grand Prix, which is worth around $600 million to the Bahraini economy, also had a negative impact on the hotel and retail sectors. During the unrest, hotels closed some of their restaurants and some staff were transferred to other properties across the Gulf, said Mike Williams, senior director at CB Richard Ellis' office in Bahrain. However, he believed there are clear signs the country's hospitality sector was already in recovery mode. Two factors which have contributed to the rejuvenation of the Bahraini market have been the return of guests from Saudi Arabia and the lifting of travel international warnings, such as in the UK, which has encouraged the return of business travelers. “We don't really have international tourism at all in Bahrain so that has never been part of our market. It has always been Saudis at the weekend and businessmen during the week,” said Williams. “The malls which been empty for the last three or four months, are heaving and that's Saudi visitation, so it looks like the Saudis are back in large numbers,” he added. The number of visitors crossing the causeway from Saudi Arabia has risen steadily during May and June and the malls are reporting an increase in business, the CBRE report added. Williams also noted hotel openings which had been delayed as a result of the shelving of the race were also now gearing up for the new race date.
