Home ›› 15 Oct 2021 ›› Front
The star-rated hotels in the capital and elsewhere in the country have started picking up good vibes in line with the improvement of Covid-19 situation.
The pandemic took the glitz out of the hospitality industry for 18 months or so which is gradually making a comeback.
The occupancy rate of the five-star hotels has risen by 50 to 60 per cent, which during the pandemic came down to just hopping 5 to 7 per cent.
However, the sector people said it will take another 3-4 years to make up their business loss incurred owing to the pandemic.
According to Bangladesh International Hotel Association Secretary Md Mohsin Hoq Himel, the star-rated hotels mainly look to tourists and international traders, with one group concentrating business operation in tourist destinations while another in major cities where trade delegates from overseas turn up.
Industry people said luxury “tourist hotels” are doing better than their peers since international travellers are gradually coming out of Covid restrictions that shut them in for a long time.
The business of star-rated business hotels is yet to make a good mark as these entities usually depend on corporate clients, mostly from overseas, who are yet to start arriving in droves due to various reasons including the one like flight operations that have not been in full swing.
However, some foreigners are visiting Bangladesh. Besides, the five-star hotels are also drawing local guests through various promotional offers.
Now the overall hotel business has increased by 50 to 60 per cent, and is on the rise. There are 17 five-star hotels in Bangladesh—nine in Dhaka, four in Cox’s Bazar, one each in Chattogram, Jashore, Bogura and Moulvibazar.
Similarly, there are six four-star hotels and 20 plus three-star hotels.
The hoteliers have no accurate statistics about hotels in terms of star ratings but it is estimated that there are about 10,000 big and small of them across the country.
An official of InterContinental Dhaka said their hotel is mainly visited by corporate clients and they are yet to welcome them in large numbers since many countries are still reeling under the pandemic.
“But our business is a little better than it was during the restriction.” added the official.
Md Mahmud Hassan, head of sales and marketing at Dhaka Regency Hotel and Resort Ltd, told The Business Post that they were usually visited by corporate individuals, but now they are few and far between.
“There is a big possibility for our business to turn around soon as most countries are getting over restrictions and shutdowns,” he pointed out.
“Our hotel occupancy rate is now on average 30 per cent. Sometimes it goes around 40 per cent. Besides, our restaurant business is getting better.”
Tashfeen Ahmed, marketing and communication Executive of Radisson Blu Dhaka Water Garden, maintained that they did not have a good business at all during the
pandemic-induced restriction, however, the situation is improving day by day, and now they have 60-70 per cent occupancy.
The executive said their corporate and other events have also started over and they are getting a good response.
“Our restaurant is doing better now and more people have bought membership for spa and health-club,” added Tashfeen.
The Bangladesh International Hotel Association has estimated the loss of the industry for Covid-19 at Tk 3,500 crore since March 2020.
About the recovery of loss, the association secretary Himel said when business starts to make a comeback, the issue of making up loss becomes the concern.
“However, the hospitability business of five-star hotels did not come to standstill in that sense. Now we are trying to figure out how to overcome the loss and survive the post-pandemic situation by giving out various promotional offers,” said the business leader.
“If such normal situation goes on, it may take 3-4 years to make up the loss incurred.”
The Westin Dhaka’s Cluster Public Relations Manager Shahrina Wahid told The Business Post they are doing better business now than it was during the pandemic.
“We have on average 60 per cent occupancy. On Monday last it was 100 per cent. Besides, various events including corporate programmes have kicked off. So, we are gradually turning around,” she said.
In addition, The Westin’s restaurant business is doing well since it provides the best quality of food and services that always draws the attention of a particular segment of individuals in the society.
“We have incurred a considerable loss due to the raging pandemic. Now it is a time to pay back. However, it might take 2-3 years to recover that,” opined Shahrina.
