New clamp hits Bahrain hotels hard
Manama, August 24, 2014
A recent clamp on Bahrain's three-star hotels has wiped BD113 million ($298 million) off the value of their assets, a report said.
The value of the combined fixed assets of the 37 hotels has dropped from BD150 million a month ago to BD37 million, a plunge of 75 per cent, our sister paper Akhbar Al Khaleej quoted owners as saying.
The owners complained that the hospitality sector is suffering huge financial losses due to the ministry's sudden decision, announced last month.
They also pointed out that other commercial sectors, including retail, food, restaurants, travel agencies, taxi drivers and gold traders, have also lost out in the absence of a clear policy regulating Bahrain's hotel industry.
A catering company lost about BD2.5 million in a day during the Eid Al Fitr holiday when it had to suddenly stop its dealings with three-star hotels under the new clamp, Akhbar Al Khaleej said.
The Culture Ministry banned the selling and serving of alcohol or hosting of live shows at three-star hotels in July, sparking concern among hotel owners and businessmen about its impact.
The ministry had shrugged off complaints by hotel owners about the short notice given to them, saying the decision was taken after careful consideration and was aimed to crack down on vice in three-star hotels.
The hotel owners and the Bahrain Chamber of Commerce and Industry had urged a rethink of the decision. – TradeArabia News Service