Below is a timeline of legal issues that affected some hotel sectors in Bahrain.
At start, there was a bit of leniency in this industry, and tourists from the Gulf were flocking into Bahrain through King Fahd Causeway or the Bahrain International Airport.
The parliament of (2006 - 2014) was dominated by religious groups which were influencing this industry and trying continuously to ban several activities. They brought the minister of culture, who is overlooking the tourism industry into question many times, until a large verbal fight took place between MPs and the minister, and videos of it were spreaded actoss all social networks.
In 2013, a new undersecretary of tourism was appointed.
On July 2014, the government started its clamp on hotels, perhaps in response to MPs requests. Yet the industry was affected and the hotel unions went into a semi-strike and press conferences that it will impact negatively on the local economy.
The government continued their bans, until late 2014 when a new parliament was formed, and this time dominated by independent members, some of secular backgrounds.
The Ministry of culture was then transformed into an authority, and the directorate of tourism was shifted to the ministry of commerce.
On January 2015, rumours emerged that the clamp will be lift soon on the banned activities.
Will they?
At start, there was a bit of leniency in this industry, and tourists from the Gulf were flocking into Bahrain through King Fahd Causeway or the Bahrain International Airport.
The parliament of (2006 - 2014) was dominated by religious groups which were influencing this industry and trying continuously to ban several activities. They brought the minister of culture, who is overlooking the tourism industry into question many times, until a large verbal fight took place between MPs and the minister, and videos of it were spreaded actoss all social networks.
In 2013, a new undersecretary of tourism was appointed.
On July 2014, the government started its clamp on hotels, perhaps in response to MPs requests. Yet the industry was affected and the hotel unions went into a semi-strike and press conferences that it will impact negatively on the local economy.
The government continued their bans, until late 2014 when a new parliament was formed, and this time dominated by independent members, some of secular backgrounds.
The Ministry of culture was then transformed into an authority, and the directorate of tourism was shifted to the ministry of commerce.
On January 2015, rumours emerged that the clamp will be lift soon on the banned activities.
Will they?
Hotels clamp may be lifted soon
RUMOURS have emerged that a ban on alcohol and live entertainment in three-star hotels will soon be lifted.
The GDN spoke to representatives of two prominent hotel management groups, who said that they had both heard from well-placed sources that the ban would be lifted within a month.
However, with the culture sector currently in limbo following the dissolution of the Culture Ministry in last year's cabinet reshuffle, no authority is in place to officially confirm or deny the rumours.
Caravan Hotels Group chairman Shaikh Mohammed bin Abdulrahman Al Khalifa said "influential people" had told him that the ban, imposed by the former ministry last year in a bid to improve Bahrain's image, would soon be lifted.
"I have heard that it will be lifted by January 15 from some, while others say it will be by the end of the month," he said.
"If it happens then all three-star hotels need to be on the same page to make sure that the ban is never reintroduced.
"There is no need to tar all hotels with the same brush because a couple had violations."
Shaikh Mohammed said that only a "handful" of hotels had violated rules related to profit taking, approved hours and the promotion of indecent activities.
"We need to be better represented so that we are not all just lumped together," he said.
"If the ban is lifted we need to work together so that it doesn't happen again - and this will only happen if we have representation like the five- and four-star hotels.
"We should also agree on a code of ethics that all three-star hotels will abide by."
Imperial Hotels Group Bahrain general manager Vivek Raj told the GDN that three-star hotels would jump at the chance to be better represented.
"I have also heard talk that alcohol will be allowed to be sold in three-star hotels again," he said.
"I think it will happen but I have no idea when.
Representation
"The only real difference between a three-star and a two-star hotel to a customer is the availability of drinks - the number of rooms doesn't really matter to someone looking for a place to stay.
"This ban made the two-star ratings effectively the same, so now there is little point to even have a three-star as it provides the exact same services to a customer as a two-star does.
"With this in mind I definitely think not only the three-star but the one- and two-star hotels need representation.
"I know almost all hotels would be very eager to get on board."
The ban on alcohol in three-star hotels has drastically affected the nature of the hotel management business, Mr Raj said.
He claimed it had led to a "massive drop" in the number of tourists frequenting three-star establishments.
ahmed@gdn.com.bh
Hotels seek to lift live music ban
A STRING of four-star hotels that were slapped with live music bans last month have started to reapply for entertainment licences in anticipation of the Christmas and New Year celebrations.
The 28 affected hotels had allegedly committed violations ranging from staying open past their licensed hours to recruiting musicians without approval and even allowing on-stage dancers to accept 'rewards' from paying customers.
However, 12 four-star hotels where no violations were discovered continued to function normally.
On November 16, it was announced by the then Culture Ministry that the live music ban would be a temporary measure for one month only '“ and Bahrain's Four Stars Hotels Committee chairman Hameed Al Halwachi confirmed yesterday that hotels were indeed pushing ahead with getting clearance for live music and dancers to return.
'Several four-star hotels that have cleared an inspection by tourism officials have now applied for permission to have live bands perform at their outlets,' he said.
'These acts should be five-piece bands, according to the rule we were told, with professional members who are all from one country.'
Mr Al Halwachi said that the hospitality sector as a whole had been adversely affected by the decision to ban live music in some four-star hotels, which also resulted in a sharp drop in room occupancy rates.
'The occupancy rate during the National Day holidays dropped from an average of 75 per cent last year to about 35pc this time,' he said.
'We expect hotels to do business in the coming weeks as lots of tourists from the GCC like to stay in the hotels where there is live entertainment.'
Mr Al Halwachi said tourism officials were currently conducting reviews of hotels to ensure that they fit the regulations relating to their star rating.
These regulations include the size of rooms and beds available, height of mattresses and quality of furniture.
Existing hotels, where remodelling of the interior is impossible or financially prohibitive, are exempt from certain criteria, Mr Al Halwachi said.
The terminology has also changed '“ meaning bars, discotheques and nightclubs in hotels will be now be referred to as 'lounges'.
Meanwhile, the ban on live entertainment and alcohol in all three-star hotels is still in place since it was first enforced in July.
This ban followed allegations of substandard facilities, hotels being operated as entertainment venues rather than places to stay and 'immoral activities' in some venues.
sandy@gdn.com.bh
Tough times for Bahrain hotels
MANAMA: The hospitality sector in Bahrain is facing hard times amid plummeting revenues.
The average four-star hotel occupancy dropped to 35 per cent during National Day holiday, from 75pc last year.
'The recent decisions taken by the tourism directorate against three- and four-star hotels have wreaked havoc on the sector,' Four-Star Hotels League chairman Hameed Al Halwachi said.
He said most tourists stopped coming to Bahrain, preferring other attractive destinations.
Four-Star Hotels League has 14 units, including Al Safir Hotel and Tower, The Mercure Grand Hotel, Hotel Novotel Al Dana Resort and The Marriott, Ramada.
The occupancy rate fell sharply this year during the National Day, which is one of the much-awaited occasions to revitalise the sector and boost revenues.
He deplored recent decisions which left the sector in limbo.
'The plummeting occupancy rate and declining revenues show that tourism authorities are adopting a wrong policy,' Mr Al Halwachi said.
He said the directorate did nothing to help hotels overcome the repercussions caused by the closure of discos.
He joined other hoteliers in calling for the establishment of an independent tourism authority to save the sector.
'Most investors are looking for a tangible rethink of tourism policies after the dissolution of the Culture Ministry,' he said, calling on the leadership to extend a lifeline to the sector which is a key pillar of the national economy.
HOTELS DILEMMA
MANAMA: Bahrain's hotels claim they have been thrown in a limbo following the Cabinet reshuffle.
They expressed concern over the situation arising out of the suspension of tourism-related activities as the Culture Ministry did not feature in the new Cabinet.
Investors said the government must quickly decide about the future of the tourism sector and expressed hope that it would be assigned an entirely different portfolio.
They also expressed concern over the deteriorating state of the sector in recent years.
However, in an attempt to end the controversial debate about the future of the hotels sector, Industry and Commerce Minister Zayed Al Zayani said that he was not given the responsibility of the sector.
In a statement to our sister paper Akhbar Al Khaleej, Mr Al Zayani pointed out that the Royal decree had made him in charge of industry and commerce sectors.
"But with regard to the tourism sector, a decision is yet to be made whether or not it would come under the Industry and Commerce Ministry," he said.
Hotels sector representatives said that it was necessary to separate the two industries after the culture sector's budget was withdrawn which was earmarked for various cultural events.
"Bahrain's economy is in dire need of funds, in light of oil price collapse, for developmental projects," investors said. "The tourism industry needs someone who is a specialist and understands how the hospitality and hotel sectors function, which will help in putting an end to the confusion witnessed in the sector," they said.
Hoteliers briefed on updated rules
HOTELIERS were yesterday briefed on new tourism regulations that include revamped categories for three, four and five-star hotels in Bahrain.
Officials from the Culture Ministry's Tourism Affairs Directorate met representatives of four-star hotels to explain plans for the hospitality sector.
It follows Thursday's shock decision to ban live music and dancers in 28 four-star hotels that allegedly broke tourism rules, while some hotel nightspots have been temporarily closed.
The GDN reported yesterday that the ban was only imposed for one month after some entertainment outlets recorded violations such as staying open after licensed hours, recruiting musicians without approval, hiring too many singers and deviating from their stated business.
Yesterday's meeting was led by Assistant Under-Secretary for Tourism Shaikh Khalid bin Humood Al Khalifa.
Among those present was Caravan Group of Hotels chairman Shaikh Mohammed bin Abdulrahman Al Khalifa, who said new definitions for hotel categories were expected to be announced by the end of the month.
"We were shown a presentation by the official that listed different types of categories for restaurants that serve alcohol, coffee shops and lounges, which the different outlets should have," said Shaikh Mohammed.
"The terminology has also changed, which means words like bar, discotheque and nightclub will be replaced with lounge."
Thursday's clampdown on four-star hotels came after 154 violations were recorded this year.
Shaikh Mohammed said hotels affected by the temporary ban on live entertainment and outlet closures would now be reviewed by the Culture Ministry before being allowed to resume entertainment activities.
However, 12 four-star hotels where no violations were discovered continue to function normally.
Another meeting organised by Bahrain's Four Stars Hotels Committee also took place at Al Safir Hotel, in Juffair, yesterday to discuss the crackdown.
Around 20 representatives of hotels participated in the meeting, which was chaired by committee vice-chairman and Hotel Mercure Grand Seef chairman Yasser Baha.
He urged all hotels to adhere to the rules and close entertainment venues by 2am, not convert coffee shops into discotheques and stop the practise of allowing customers to reward dancers with flower garlands and even throw money at them.
Meanwhile, Brothers Group general manager Abdulkhair Ibrahim said the decision of tourism chiefs must be respected.
"We do not have any information in writing sent by the ministry of any rules or violations, but we have to admit it is becoming difficult to walk in Juffair and believe this is Bahrain," he said, referring to prostitution.
"This is an Arab country and we appreciate its openness to have discos and bars."
Live entertainment and alcohol were banned in all three-star hotels in July following allegations of "immoral activities" in some venues, which is thought to be a reference to prostitution, substandard facilities and hotels being operated as entertainment venues rather than places to stay.
sandy@gdn.com.bh
HOTELS BAN TEMPORARY
MANAMA: A music ban on Bahrain's four-star hotels will be a temporary measure for one month only, it was revealed yesterday.
The measure also includes a ban on hiring dancers and music bands in hotels found violating the provisions of a law regulating tourism activities.
The move is part of the Culture Ministry's vision and responsibility to regulate and develop the hospitality sector, the ministry said. The violations include changing the nature of activity, failure to abide by opening hours and the authorised number of singers as well as recruitment of musicians without the ministry's approval.
Assistant under-secretary for tourism Shaikh Khalid bin Humood Al Khalifa, meanwhile, said the ban follows 155 violations in 28 four-star hotels in April and May last year.
In July last year, these hotels received circulars to rectify their situation, but they continued to commit violations, he said. Legal action was, therefore, taken against violating outlets in August last year. Despite repeated warnings and meetings with representatives of the hotels, 154 violations have been reported this year which, led to the ban.
Twelve four-star hotels have not registered any violations and were spared legal action.
Editor-in-chief of Akhbar Al Khaleej, Mr Anwar Abdulrahman, was flooded yesterday with waves of text messages and telephone calls. They were objecting to the newspaper giving an opportunity to hoteliers to react to music ban developments.
Mr Abdulrahman replied to them: 'We are the conscience of society, and under no circumstances can we allow any political or ideological group to intervene in our editorial policy.'
Hoteliers react to clean-up drive
HOTELIERS and venue managers have hit out at a controversial Culture Ministry decision to ban live music in more than half of Bahrain's four-star hotels.
Thousands of people are at risk of losing their jobs and some investors could move out of Bahrain altogether if the decision is upheld, it has been claimed.
On Thursday, the Culture Ministry's tourism affairs directorate issued a circular ordering the closure of discos and entertainment venues in 28 of the country's four-star hotels '“ further cancelling their licences to recruit musicians.
Bahrain Four Star Hotels Committee chairman Hameed Al Halwachi told the GDN that acting assistant Under-Secretary for Tourism Shaikh Khalid bin Hamood Al Khalifa wanted stage entertainment such as Russian cabaret, Indian bands and even DJs banned in these venues because they were found to be violating the law.
'If all these hotels were informed in advance or even warned to correct their situation they would have adhered by the rules,' he said.
'We are told the decision comes right from the very top, so we respect it and if anyone has violated the rules they should be punished.'
Mr Al Halwachi would not confirm which laws had been broken, although it is understood that the crimes relate to vice and immoral behaviour.
Elite Crystal Hotel's Klub 360 general manager Rick Costa told the GDN that the ministry was seeking to 'clean up' the industry.
'If the decision is taken to close us down completely then within the industry thousands of workers are set to lose their jobs,' he said.
Encourage
'Closing down our outlets will just mean that there will be more business for the restaurants with liquor licences in Adliya '“ or it will encourage the black market.
'In any case, there is no law banning alcohol here and people are free to have it within the confines of their homes under the name of a party.'
Mr Costa questioned the timing of the decision, with Bahrain due to go to the polls this week.
'Some are saying that the government wants to please Islamists running for election and others are saying that more restrictions are being imposed to clean up the industry,' he said.
'But no one really knows the reasons behind the circular, except the people who put it out.'
However, Bahrain's Five Star Hotels Committee head Abdulnabi Al Daylami claimed that the ban had nothing to do with the upcoming elections.
'These outlets were found to be violating the law '“ such as using coffee shops as discos and staying open beyond their licensed hours,' he said.
'They took advantage of the alcohol ban in three-star hotels and committed all the same violations in four-star hotels.'
Live entertainment and the sale of alcohol was banned in all of Bahrain's three-star hotels following a snap decision by the Culture Ministry in July.
That ban was enforced amid allegations of 'immoral activities' and substandard facilities in some hotels, with owners allegedly ignoring licensing regulations and operating their properties as entertainment venues rather than hotels.
The four-star hotels have been warned that all of their outlets must abide by the rules or face action.
Four-star hotel owners and their legal consultants are set to hold crunch talks today at Al Safir Hotel to discuss an action plan in the face of the ministry's crackdown.
HOTELS DEFYING CLAMP |
Manama: Four-star hotel owners and managers will hold a meeting tomorrow at 11am at Al Safir Hotel, Manama, to discuss the consequences of the latest clampdown on the sector. The hoteliers voiced their outrage in the wake of a decision by the Tourism Directorate to close discos and other entertainment outlets in 32 four-star hotels.
Legal consultants will also attend as hoteliers study the possibility of abstaining from paying a five per cent tax levied on their outlets, sources told our sister paper Akhbar Al Khaleej.
Updated figures show that fees levied on hotels surged from BD8.485 million in 2012 to BD9.735m last year.
Hoteliers claim that they have suffered massive losses ever since a new official took over as assistant under-secretary for tourism.
A number of outraged companies and investors are reportedly planning to leave Bahrain, blaming their possible 'migration' on random decisions which harm investment and economic interests.
Meanwhile, religious leaders, imams and all affiliates of the Sunni endowments yesterday hailed the closure of four-star hotel discos and entertainment venues.
They voiced their full support for the decision which reflects the political leadership's keen interest to root out all practices found in breach of Islamic precepts, moral values and Bahrain's traditions.
Three-star hotels hit by crackdown
THREE-STAR hotels are already feeling the impact of the alcohol and live entertainment ban imposed by the Culture Ministry two weeks ago.
In the past, Eid has meant an increase in customer numbers for the hotels in Bahrain classified as three-star Ð with advance bookings often hitting 50 per cent or more.
However, after speaking to several hoteliers the GDN has learnt that the Culture Ministry's ban, imposed amid allegations of 'immoral activities' in some hotels, has been bad for business.
The Aradous and Adhari hotels, both part of the Caravan Group, are just two of dozens of hotels that have been hit by the ban.
'Almost none of the rooms have been booked,' said Caravan Group of Hotels chairman Shaikh Mohammed bin Abdulrahman Al Khalifa.
'Usually at this time (the week before Eid) we have between 40 and 50pc of our rooms booked and the rest get filled up by walk-in customers Ð but I don't think that will be the case this year.'
He explained that the Caravan Group is looking to upgrade their hotels to meet the four-star standard, but it was not possible to complete this in time for the holidays.
Contracts
Other hoteliers told the GDN that the government should be held accountable for all the contracts that they had signed with entertainers due to perform this Eid.
'When the Culture Ministry imposed the ban on entertainment venues it was understood by all of us in the industry that investors had been affected,' said a spokesman for a major chain of three and four-star hotels, who did not want to be named.
'Although certain properties can be upgraded, some just don't have the space and it is really going to affect them.
'The Culture Ministry should have given us some time or at least some notice, because it will definitely affect the workforce now.
'Usually contracts are signed and settled for Eid at least two months in advance Ð and now we have contracts with musicians and bands that we cannot honour without taking a loss.
'A lot of money will be lost and who are we going to get compensation from?'
The Casablanca Hotel in Manama has also experienced a dramatic drop in reservations this year, which staff there attributed to the ban.
'We currently have between 15 and 20pc bookings for Eid, which is not good,' said a hotel sales representative.
'Usually around this time the hotel is fully booked.
'Most of our guests want to enjoy themselves and have beverages and now almost none of them are booking.
'We can't even entertain our guests with music and bands which are usually very popular during Eid.
'The landlord does want to get a four-star rating and has applied to the Culture Ministry but it doesn't seem likely that it will come through before Eid.'
Other hotels that operate under different business models like the Tropicana Hotel in Manama are not overly concerned about the ban's impact this Eid.
'The ban on bands and alcohol has not affected us too much,' said hotel food and beverage manager Mohammad Saleem.
Impact
'Our rooms are more of a villa style that attract families and we don't have bands, so that is not a problem Ð but we would like to be able to offer our corporate clients alcohol as they come with certain expectations.
'But we are doing fine this Eid, and already have between 75 and 80pc of our rooms booked Ð the only thing that has really changed is that we have put a halt on all orders of alcoholic drinks.'
The GDN previously reported on the fears of senior community leader and former Manama municipal councillor Mohammed Al Hawaj that the government's initiative to crack down on vice in three-star hotels could simply result in prostitutes being driven into higher-end establishments.
The government's allegations of 'immoral activities' in some hotels are believed to be a reference to prostitution, substandard facilities and owners ignoring licensing regulations by operating properties as entertainment venues rather than hotels.
ahmed@gdn.com.bh
Alcohol ban 'forcing hotel owners into distress sales'
SEVERAL Bahraini and foreign hotel owners are offering to sell their three and four-star hotels at 25 per cent less than their price a month ago.
A Bahraini investor who owns a chain of three and four-star hotels said he was ready to sell at 50pc of their cost, if he can find a buyer who is willing to pay cash.
He is now considering moving to Morocco or Egypt or a GCC country, sources told our sister paper Akhbar Al Khaleej.
Bahrain Real Estate Association chairman Nasser Al Ahli said hotel prices in Bahrain have recently dropped by 30pc to 40pc as a result of the latest decision banning alcohol, nightclubs and bars in three-star hotels.
Alcohol ban to stay
THREE-STAR hotels claim they could be forced to close as a result of an alcohol ban imposed on them by the Culture Ministry last week.
However, the Culture Ministry has said there are no plans to reverse the decision and pledged to help hotel owners who want to upgrade their facilities to four stars.
Crunch talks between hotel representatives and the ministry, including Culture Minister Shaikha Mai bint Mohammed Al Khalifa, took place at the Bahrain Chamber of Commerce and Industry (BCCI) yesterday.
Delay
However, authorities are sticking by their decision - which will also see nightclubs and live entertainment banned in three-star properties.
Hotels in the two and one-star category are already banned from serving alcohol or staging live entertainment.
During yesterday's meeting, three-star hotel representatives asked the ministry to delay its decision, which comes into effect immediately, to allow them to upgrade their status.
"It (the ban) is permanent," a Culture Ministry spokesman told the GDN after the meeting.
"We are in discussions with the three-star hotels and we will continue the process of improving them to get a four-star rating.
"We will help them with our specialists and our consultants - our doors are always open to all."
Among those at the meeting was Caravan Group of Hotels chairman Shaikh Mohammed bin Abdulrahman Al Khalifa, who complained about the short notice given to three-star hotel owners.
"The decision is not investor-friendly," he said.
"If the ministry wanted to do this that is fine, but not so abruptly. We need time to wind down operations and divest or slowly invest to reach the standard.
"We (hoteliers) suggested that the decision should be implemented in three years to allow us to plan and react accordingly.
"Yet they (the ministry) went to an extreme stand, which was very abrupt even for the ministry."
He revealed several three-star hotels had already been given permits to hire performers scheduled to start after Ramadan, meaning they would have to tear up contracts already approved by authorities.
"They (the ministry) said rooms were not up to standard and gave examples of investigators who warned hotels to change something and they didn't," added Shaikh Mohammed.
"If any hotel was not responding there are procedures - they can revoke the licence or shut them down temporarily.
"I don't understand why they made the decision for all three-star hotels, instead of just going after those who failed to change.
"We all have to renew our licence and get inspected by the ministry. The practices have been the same for years and the inspectors have approved the hotels and allowed for licences to be renewed, so to say that hotels are in not in good order doesn't make sense - are the inspectors not doing their jobs and, if not, why should we all have to pay?
"There was another three-star representative at the meeting who invested everything they had into a hotel that has thriving entertainment, thinking it was a sound investment.
Bankruptcy
"They took loans and invested time and effort - now with this ban it doesn't look like they will be able to sustain their hotel and will probably file for bankruptcy."
The BCCI originally expressed concerns that the decision could damage tourism in Bahrain.
"We are not a party to this decision nor the discussions, we are merely facilitators for our members," said BCCI chairman Khalid Almoayed.
"We offered to provide a platform to reach a conclusion."
The ban has been enforced amid allegations of "immoral activities" in some hotels, which is thought to be a reference to prostitution, substandard facilities and owners ignoring licensing regulations by operating properties as entertainment venues rather than hotels. ahmed@gdn.com.bh
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