The launch of the $40 million Holiday Inn Express Bahrain, the kingdom’s first limited service hotel, is indicative of the growing opportunities in Bahrain for the travel and tourism sector over the coming decade.
The investment has been made by Dubai International Capital, the international private equity arm of Dubai Holding through its majority owned vehicle, Ishraq Gulf Real Estate Holding Company.
Ishraq is an experienced developer and operator of Holiday Inn Express hotels across the GCC, focusing on price-conscious business and leisure travellers.
Located along the commercially important Exhibition Road, the 274 room hotel is close to Bahrain International Airport as well as the King Fahd Causeway, Bahrain Financial Harbour, key diplomatic facilities and shopping centres.
Maissan Jalal Al Maskati, chairman of Ishraq Gulf Real Estate Holding and managing director of Dubai International Capital, commented on the investment opportunity presented by the Bahraini tourism sector and the launch of the Holiday Inn Express hotel in the kingdom:
'Bahrain has been and continues to be an attractive tourism and hospitality market. In fact, our decision to make such a substantial investment was driven by our long term confidence in the market’s historically healthy occupancy levels and hotel rates, coupled by a sophisticated consumer base that demands a high quality limited service product.
Further to the launch of four Holiday Inn Express hotels in Dubai, we are now delighted to be here and to have chosen Bahrain to launch our fifth and newest location.'
A recent research report published by the World Travel and Tourism Council forecasts that the direct contribution to GDP of travel and tourism is set to grow by 3.7 per cent per annum between 2012 -2022 to BHD769.4 million ($2.04 billion). Coupled to this is the expected growth in employment within the sector, from approximately 27,500 jobs in 2011to 36,000 jobs in 2022.
In 2022, travel and tourism investment is expected to top BHD326.1 million ($865 million) compared to BHD205.5 million ($545 million) in 2011. Such investment will play a key role in attracting the forecasted annual visitor figures to over eight million arrivals in 2022; in 2011 foreign tourist arrivals neared five million. Business travel spending in Bahrain is also forecast to rise to BHD169.3 million ($449 million) in 2022.
Commenting on the future of the Bahrain tourism and investment in tourism, Kamal bin Ahmed, minister of Transportation and acting chief executive of the Bahrain Economic Development Board (EDB), said: 'It is very encouraging that the Holiday Inn Express has opened up in Bahrain and we welcome them to the kingdom. This represents a significant investment and is an indication of the faith in the strong fundamentals and growth prospects of the kingdom.
'This type of limited service hotel is a reflection of the increasingly cost conscious business and leisure traveller, and it is important that Bahrain is able to maintain a strong offering for the increasing number of people who travel to Bahrain for work and as a holiday destination.'