Political instability
Another factor currently hampering the growth of Bahrain’s F&B industry is the political unrest that flared up in February this year .
The key issue is not the unrest itself, but rather the knock-on slowdown in tourism that is likely to last throughout 2011 and into 2012. The political situation prompted Euromonitor International to forecast a CAGR of -1% in tourist arrivals between 2010-2015 after a long period of growth.
Euromonitor also expects the tense situation in Saudi Arabia to impact tourism in Bahrain — this is Bahrain’s largest source market for tourism, accounting for 66% of all tourist arrivals last year.
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“Presently, the Bahrain market is struggling due to its internal affairs,” says Ròya International’s Saleem. “It’s not the right time for new brands to enter the market, but once stability returns there will be good opportunities for quality brands once again.”
But it will take more than civil unrest to dent the spirits of Bahrain’s chefs and F&B managers. The lull in business is forcing operators to think more creatively. Whilst this may just be a survival tactic, it will benefit the market when stability returns.
“Certainly, the political events in February have impacted upon Bahrain’s gastronomic horizons and we’ve seen significant declines,” concludes Joguin.
“But the majority of outlets have used this low-business period as an opportunity to focus on new projects and revamp old ones! We have certainly seen the market rebound in the past month, offering higher standards, new ideas, new menus and refurbishments.
“The F&B entrepreneurs of Bahrain have put a lot of effort in during the recent crisis to ensure Bahrain rebounds with vigour.”
Bahrain’s Top F&B Hubs
Adliya: Bahrain’s quirkiest and most bohemian restaurants can be found in this district of Manama. Many venues have been converted from old townhouses.
Seef: A cosmopolitan area with a high concentration of branded restaurants offering every conceivable cuisine including American, Japanese, Lebanese, Indian, Chinese, French … and even the odd chocolatier can be found!
The Diplomatic Area: Located in the Central Business District of Manama, this area is home to many of the capital’s high-end hotels and F&B outlets.
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