Country Report Bahrain April 2011

Economic performance: Tourism sector suffers

Hotel occupancy rates were reportedly very low in March and April, and the opening of some new hotels has been delayed, as a result of the recent political instability and the indefinite postponement of the Formula One Grand Prix. A report by CB Richard Ellis, a consultancy, in mid-April said that occupancy rates had fallen to between 5% and 10% at Bahrain's hotels. The report also said that some new hotels that had intended to open in time for the Formula One weekend had delayed their planned start dates until after the summer. The consultants also noted that the retail sector had suffered from the unrest, but that it was beginning to pick up again as curfew hours were relaxed. The state media's reports on the economic damage have varied between blaming the opposition for major economic damage and trying to instil confidence. On April 7th the Bahrain News Agency published a report titled "Bahrain tourism and hospitality sector is on track", noting that 37 European tourists had entered the country, saying that this was the first such visit since mid-February. The UK reiterated its advice against all but essential travel to Bahrain, saying that the situation had not yet returned to normal.

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