The $13 million is part of a larger investment campaign which will be distributed across various sectors in Bahrain and totals to $32 billion. Out of the total sum, $10 billion accounts for government funding, $7.5 billion from the GCC Development Fund and $15 billion from the private sectors, a statement from EDB reported in a previous Hotelier Middle East report said.
While Bahrain is going full steam ahead with adding supply, the figures from Colliers International’s quarterly review for 2018 shows no signs of improvement in term of key performance indicators (KPIs). Instead, it’s a relatively stable performance but with continued rate suppression.
Citing an STR performance report from 2017, the 90-key luxury serviced apartments Fraser Suites Seef Bahrain general manager Pierre Vasseur says that property registered the “highest occupancy” of around 60% to 80% compared to rest of the hotels in the five-star sector in Bahrain.
Vasseur credits the hotel’s performance to the serviced apartment concept. “One of the key strengths of the serviced apartment business model is being able to change the target market profile between long and short stay to suit market conditions in order to achieve revenue maximisation,” he explains.
For the 245-room five-star city resort, The Ritz-Carlton Bahrain, executive assistant manager for sales and marketing Soufiane Elallam shares that 2017’s performance was “strong against the budget,” but reveals the property ended on a “positive note”. “We maintained our top spot in the market with growth in all segments, despite adverse market conditions,” he adds.
Source market
As stated earlier, visitors from Saudi Arabia dominate the hospitality source market and this is true for a number of hotels in the country. Vasseur notes that Saudis provide the hotel a majority of its business. But visitors from Europe have also been steadily increasing, too.
The Saudis are followed by other GCC nations like UAE, Kuwait and Oman and internationally, Bahrain also attracts visitors from UK, USA, Russia and India. For The Ritz-Carlton Bahrain, Elallam notes that in terms of top bookings at the hotel based on nationality, Russia is emerging strongly.
However, Bachar points out that visitors from Europe are on the up and up: “Last year we also saw strong growth from European markets, with visitor numbers from Europe increasing by 25%. We are also seeing average visitor length of stay and expenditure grow year on year. We know that second time visitors stay longer and spend more, which is a very positive indicator of Bahrain’s increasingly diverse tourism offering.”
While the leisure market does attract the most tourists to the kingdom, a report from #W7Worldwide Communication Consultancy agency has predicted a significant growth in Bahrain’s exhibitions and conferences sector in 2018. According to the report, in the process of developing this MICE sector over the next three years, the sector will activate business and tourism trips to attend the conferences, exhibitions and meetings.
The government, too, is playing an active role in upping the visitor count which thus far, Bachar points out has been “largely achieved organically”. Upcoming leisure developments and stand-alone attractions are in the works, confirms Bachar.
“Current developments in progress cover a number of retail and entertainment destinations including Dilmunia Mall and Marassi Galleria, which will join the recently opened $159 million Avenues Mall at Bahrain Bay. Also in the pipeline is the development of Manama Traditional Souk as well as new beach and island development projects at Qalali Beach, Al Qous Corniche, and Al Moatredh Island. Expansion and enhancements have recently been made at the Lost Dilmun Water Park and at the Bahrain International Circuit, two cornerstones to our leisure attraction sector,” Bachar adds.
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