Bahrain Chamber for Commerce makes recommendations for revival of tourism sector

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MANAMA: The Bahrain Chamber for Commerce and Industry (BCCI) has urged the authorities to prepare a comprehensive plan to revive the tourism and hospitality sectors that have borne the brunt of the Covid-19 pandemic.

In a report released yesterday on the economic impacts of the coronavirus crisis, based on a study carried out between April and June this year, the chamber has said there is an urgent need to rebuild destinations, encourage innovation and investment, and restructure the tourism sector.

Tourism contributes to the economy by injecting liquidity and supporting many jobs and companies, it said.

Like many countries, there should be more emphasis on developing domestic tourism by catering to the needs of residents and citizens.

There is a need to implement health and safety protocols that will help in resumption of international travel and trade, such as self check-in and check-out in hotels

Hotels and airlines must also increase flexibility by providing customers the option to reschedule reservations in lieu of cancellations and boost local tourism offers.

The BCCI said while the tourism sector’s emergence from the crisis will not be easy or quick, the sector has withstood many crises in the past including the SARS epidemic in 2003 and the global financial crisis of 2008-2009.

It expressed confidence in the sector’s role in revitalising the economy once the crisis is over.

The chamber’s survey found that the coronavirus has significantly affected the contribution of various economic sectors to the GDP of Bahrain.

The biggest impact was in the restaurant and hotels sector, where the proportion of its contribution decreased by 36 per cent compared to same period last year.

The volume of foreign reserves in Bahrain decreased by 46pc as of end-May 2020 to BD674.9 million from BD1,243.5m as of January 2020.

Due to full or partial lockdown, the volume of trade between Bahrain and other Gulf states has decreased to a large extent.

Bahrain’s trade with the largest economy in the region, Saudi Arabia, has plunged by 36pc in the first half this year, whereas trade with Kuwait, the UAE, and Oman is down by 25pc, 20pc and 14pc respectively.

Inflation in Bahrain as measured by the consumer price index (CPI) dropped by 4.3pc in the first half this year when compared with the same period last year, said the chamber’s report quoting official government data.

The decrease in the prices of goods and services is mainly due to a decline of 5.38pc in entertainment and tourist services prices.

avinash@gdn.com.bh

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