Gulf war hits hotel business in Dhaka

Hotels and guest houses in Dhaka are bracing for a slump in business as the number of foreign visitors is expected to drop due to the war in Iraq, The Daily Star reported yesterday.

Owners and employees fear a sharp decline in occupancy rates if the war is prolonged as most of the hotels and guest houses are exclusively for foreigners. They noted that the number of foreign guests, particularly from the U.S. and the UK, is already decreasing in the wake of the U.S.-led invasion of Iraq.

Many have cancelled their reservations or asked to postpone them.

An official at Golden Inn guesthouse told the newspaper that about 40 per cent of their bookings have been cancelled. The occupancy rate at Citydel hotel at Gulshan has dropped to 30 per cent from 60 to 70 per cent before the war.

The manager of Aristocrat Inn hotel, however, said the occupancy rate is normal. But he added that they have not received any fresh reservations since the war started.

Sadique Ahsan, president of the Bangladesh Hotel and Guest House Owners Association, said business has yet to be affected by the war and that it is too early to predict the impact right now.

If the war is prolonged, it will affect their business badly, he added. He said there are about 60 hotels and guest houses in the city with a total of 1,200 rooms and their usual occupancy rate is 60 to 80 per cent.