The frequent hartals and political unrest are taking toll on the business of luxury hotels in Dhaka.
Hotel officials said they have started witnessing revenue fall during the pick time which stretches from October to January as the country’s politics remain instable.
“Frequently repeated hartals have badly affected our business. But October-January is our pick time,” said Shahidus Sadeque, Marketing Communication Manager of Ruposhi Bangla Hotel told the Dhaka Tribune.
He estimated that the hotel suffered 20%-30% revenue fall during the period.
The executives of different posh hotels in Dhaka expressed their worries over the current political unrest.
They said the occupancy rate of hotel suites and rooms has fallen sharply. According to them, the rate dropped by more than 50%.
The organisers of different functions are not renting spaces in luxury hotels as political violence has gripped the nation.
General Manager of Ruposhi Bangla, James McDonald said the hotel could not earn least $3m in last 7-8 months as of October due to the unrest.
“Confirmed bookings of at least $3m were cancelled because political uncertainty. The figure of potential bookings was much bigger,” he told the Dhaka Tribune in last month.
Sources concerned said Ruposhi Bangla earned a gross revenue of Tk1.25bn in 2012.
Hundreds of foreigners, mainly business persons, already left Dhaka after the start of another wave of hartals, said the luxury hotel industry people.
According to the managements of the posh hotels in Dhaka, occupancy rate by foreign guests and space renting for holding events have reduced to half in last one month only. Bookings are being cancelled amid the worsening of political situation and violence.
Ruposhi Bangla authorities said they are receiving very few booking order while during normal situation the hotel spaces are rented for organising four to five events daily.
The Pan Pacific Sonargaon Hotel Dhaka already witnessed 30% fall of its business during last several months.
“Our business dropped 30% in last few months compared to same period one year ago,” said Salman Kabir, Public Relation Manager of Sonargaon Hotel.
He said: “During October-January pick time, our occupancy rate usually stands at 90% to 100%. But the rate reduced to only 30% in October this year.”
“Like many other businesses, the luxury hotel business is also suffering badly the outcome of confrontational politics.”
An assistant sales director of Westin Hotel Dhaka said the hotel saw many foreigners had cancelled room bookings because of the current political situation.
Besides, the organisers have to suspend holding of many events on hartal days, which has led to fall in booking of spaces in the hotel, he added.
Under these circumstances, some hotels are planning special package offers on foods and others services for the clients to offset the hartal losses.
