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THE harsh reality of the financial blow to the hospitality industry in Bahrain caused by the recent unrest has been spelled out by one of the pioneers of the sector this week.
Gulf Hotels Group chairman Farouk Y Almoayyed revealed that the financial results of the first three months of the year had fallen below expectations.
The cancellation of the 2011 Formula 1 Gulf Air Bahrain Grand Prix together with most of the major conferences, meetings and banquet functions, plus the travel ban imposed by many countries, all contributed to a substantial decline in results as compared to the first quarter of 2010.
The group managed to achieve a gross operating revenue of BD6.963 million in comparison with BD8.942 million achieved in 2010, a decrease of BD1.979 million or 22.13 per cent.
Mr Almoayyed said that during February the group made an additional investment of 5,000,000 shares in Bahrain Family Leisure Company (BFLC) increasing the shareholding to 28.05 per cent on the 'issued' and 'paid up capital' there by treating it as an associate from this quarter.
He voiced his appreciation for the efforts of all the company's divisions during a 'very challenging' period and said that the group's management and staff had worked hard to keep operations running as normal and to minimise losses.
The chairman announced that the company has generated a net profit of BD1.844 million in comparison with BD3.355 million achieved in the same period of 2010, a decrease of BD1.511 million or 45.05 per cent for the three months.
Aqeel Raees, chief executive officer, Gulf Hotels Group, added: "The hospitality industry has been hit very badly by the unrest. Our aim has been to offer 'service as normal' and therefore our restaurants remain open for business.
"We implemented a series of cost cutting exercises in order to control overheads but we are pressing ahead with our sales strategy and continue to promote the hotel at major events.
"We remain committed to the development of the company and continue to plan for upcoming projects with will include refurbishments in the Gulf Executive Residence and the addition of a spa and the relocation and expansion of the hotel's laundry."
