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February 12, 2002
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Tuesday
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Ziqa’ad 28, 1422
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Hotel business returning to normalcy: Local, global events
By Aamir Shafaat Khan
KARACHI, Feb 11: Big hotels are reporting a pick up in their business, both in terms of room occupancy mainly because of improvement in arrival of foreigners, both businessmen and tourists, and also booking of their lounges and halls by the local trade bodies, foreign missions and international organizations.
Almost all the big hotels — five and four stars — wore a haunted look, after September 11 episode in the United States. The situation further aggravated after October 7 when the US launched air strikes on Afghanistan resulting in virtual exodus of all the foreign nationals. Things became worse after December 13 incident at the Parliament in New Delhi.
But then normalcy started limping back from January and big hotel operators now report business gaining pace with every passing day in terms of their rooms occupancy, booking of halls and the turnout of their clientele in their restaurants.
All big multinational companies from where majority of the foreign executives left for their home countries or head offices of their companies — are back on their jobs. With advent of winter, a number of multinationals have either already held or are planning to hold their in-house conferences in Karachi, another major source of big hotels’ business.
As many as five to 10 foreigners are daily marking their presence at the Karachi office of the Pakistan Tourism Development Corporation (PTDC) as compared to a virtual nil attendance situation that arisen soon after September’s tragedy followed by Pakistan-India stand-off in December.
Around 15-25 foreign tourists used to arrive daily in Karachi prior to September 11 incidents. “The city situation now seems normal and five to 10 foreigners are arriving every day. The number is likely to rise from April when peak tourist season gets underway till the end of September,” Manager South Karachi, PTDC, Naseer Ali Khan told Dawn on Monday.
As a result of a terrible event in America, arrival of foreigners came to a standstill, resulting in revenue fall of PTDC in Karachi to Rs0.8 to Rs0.9 million in July-January 2001-2002 as compared to Rs1.1 to Rs1.2 million in the same period of 2000-2001. Total earnings from Karachi during July-June stood at Rs4 million.
Foreigners from Japan, Europe and the US land in Karachi to visit Northern areas, Mohenjodaro, Thatta, Makli, Bahmbor and Chaukandi Art.
Ex-chairman Pakistan Hotels Association (PHA) and Director Hashoo Group, Mansoor Akbar Ali said that the room occupancy is gradually returning towards normal from January and indicators for hotel business are now positive in months to come.
Hashoo Group of Company runs five PC and two Marriott hotels in Pakistan. Giving an overall picture of leading hotels, he said that the occupancy rate in Karachi hotels, which had dropped by 80 per cent soon after September 11, now range between 60-65 per cent. In Islamabad and Rawalpindi hotels, room occupancy hovers between 70-80 per cent followed by 45-50 per cent in Lahore and 50-60 per cent in Peshawar.
The country is currently in the grip of Basant fever to be celebrated on February 17. Since the event is being organized in Karachi also after turning into an international event, many foreigners are now eager to visit various cities of Pakistan. Besides, the Valentine Day, falling in just two days, also increases up room occupancy.
Two important investment conference — International Chamber of Commerce (ICC) in Karachi on February 17 and Shell Investment Conference either in the current month or in March in Islamabad — will also help surging hotel business. A 17-member business delegation of Turkey is also arriving in the city in few days to sign memorandum of understanding (MoU) with local contractors and builders to work jointly in the restructuring and rehabilitation process in Afghanistan.
Former chairman, Travel Agents Association of Pakistan (TAAP), Mohammad Yahya Polani said that their business has started improving from January since foreign and local travellers have flooded towards booking of local and foreign airlines for Basant and other global events.
He said as many as six international airlines like Kuwait, Lufthansa, Cathay Pacific, Syria, Egypt and Swiss Air have resumed their flights to Pakistan out of 10 big airlines. Emirates is already there.
He said that the current restructuring and rehabilitation process in Afghanistan have also lured many foreigners to specially visit Karachi to have one-to-one meetings with several businessmen and entrepreneurs.
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