Dubai: As Bahrain starts to bounce back from the political unrest, it is set to emerge as one of the most popular tourist hubs in the Middle East with an increasing number of hotel and resort groups investing in the country’s hospitality and leisure sector.
As the country’s tourism sector opens up, a number of hotels are beginning to cash in on opportunities including Rotana, Four Seasons Marriott International.
A recent case in point is Dubai-based Ramee Group of Hotels & Resorts. The company is scheduled to open its first property, the Ramee Grand Hotel and Spa, in September this year and, according to the company, will be the tallest five-star hotel in Bahrain.
Raj Shetty, Chairman and Managing Worker of Ramee Group of Hotels, explained that 17 years of successful operations had given the group confidence to take operations to the next level by opening its first five-star hotel in Bahrain. The group will be working in close association with the local government to promote Bahrain’s arts and cultural tourism.
“The government has recently announced the development of several infrastructural facilities such as beachside leisure areas and water sports to attract more family tourism, as part of its 2030 vision to increase tourism,” said Shetty. “More opportunities are opening up for investors across the hospitality, travel and leisure sectors in Bahrain.”
Bahrain’s tourism sector suffered greatly as a result of the 2011 revolutions that spread across the region. The country witnessed sporadic and ongoing unrest during the political upheaval, with minor pockets of unrest occurring on a weekly basis even after the general uprising was controlled.
According to Peter Goddard, Managing Director of TRI Hospitality Consulting, the unrest “severely affected” the country’s inbound and outbound tourism resulting in “significantly lower” hotel occupancy levels compared to the previous year. He said that hotels in the country had on average occupancy percentage levels between the “high 30’s and low 40’s”.
“In terms of the impact on overall tourism arrivals, it is perhaps evident when you compare the Bahrain airport arrival statistics for 2010 and 2011. The total passenger arrivals, excluding transit, at the Bahrain International Airport dropped by nearly 12 per cent in 2011 from the previous year,” explained Goddard, adding that the rate agreement in existence for hotels limited any drastic reductions in rates.
While Shetty admits that foreign customer turnout in Bahrain “dropped marginally” owing to the upheaval, he said they are “back on track” this year. Shetty says, he is confident that in the first year of its operations, the Ramee Grand Hotel and Spa will experience “more than 60 per cent” occupancy.
According to STR Global, results received from 15 hotels in Bahrain reported increasing occupancy rates for the first five months of this year compared to the same period in 2011. Analysts believe that the growth reflects that guests have come back in limited numbers and that it might take a little while for the Bahraini hotel market to return to levels seen prior to the unrest.
Another hotel group seeking expansion in Bahrain is Rotana, which will open its first property in the country by the end of the fourth quarter this year.
“We expect that as general business conditions improve in these countries and indeed right across the Middle East and Africa, so will the opportunities for hospitality, and Rotana is adding several new destinations to our offering,” said Selim El Zyr, Rotana’s President and CEO.
Other companies investing in projects include the Four Seasons and Marriott International. Construction on the Four Seasons Hotel in Manama is scheduled for completion by 2013, while construction on the new luxury JW Marriott Manama is scheduled to be completed by 2015.
