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September 05, 2006 Tuesday Sha'aban 11, 1427


Sharp decline in hotel room occupancy: Bugti’s killing



By Aamir Shafaat Khan


KARACHI, Sept 4: Leading hotels in Karachi gave a mixed reaction over decline in room occupancy and cancellation of functions in the aftermath of the killing of Jamhoori Watan Party chief Nawab Akbar Bugti in the last week of August in Kohlu.

However, hotel business in Balochistan and other cities of NWFP, Northern Areas and elsewhere have been hit hard.

An official of the Pakistan Hotels Association (PHA) in Karachi, who asked not to be named, said that some hotels had felt the pinch of the Kohlu’s tragedy in the form of sharp decline in room occupancy and cancellation of functions, while for others business remained un-hurt.

However, market sources said that the hotel business usually depends on the political and economic situation but currently the hoteliers are not ready to give the actual picture of their business, which has definitely been hit in terms of cancellation of events and decline in room occupancy.

Meanwhile, local and foreign tourists have become cautious as they are not turning up at the regional office of the Pakistan Tourism Development Corporation (PTDC) for tour queries, especially for trips to Balochistan and parts of the Northern Area.

A leading PHA member in Islamabad told Dawn on condition of anonymity on Monday that the hotel business in Balochistan and other cities had been affected badly while in major cities the hotel business has been normal.

“The room occupancy level in Islamabad is better, while in Karachi and Lahore the room occupancy level had been reasonable after the Kohlu’s tragedy,” he claimed adding that the same parameters could be applied to booking of functions and other events.

He said there had been problems in hotels in Balochistan in terms of room occupancy and cancellation of events because of air and land traffic slow down.

On future business scenario, he said he could not predict the future of hotel business after the political unrest but he hopes that the situation will improve.

Another leading PHA member in Karachi said that on the day of the Kohlu operation (August 26) there was no direct impact on the occupancy levels. However, once the news spread and the violence set in the hotels immediately started receiving cancellations calls based on security concerns.

He said the hotels will lose further if the media continues to highlight the political issues, which in turn will result in adverse travel advisories from the foreign missions.

One can only hope and pray that the situation does not escalate further as the effects will be very damaging for the country’s image and for the economy, the PHA member said.

General Manager PTDC Sindh Balochistan Riaz Hassan Khan said that the corporation had a motel in Ziarat, whose business had been affected severely as tourists and other people felt insecure.

For instance, he said if some 100 people used to enquire about visiting Swat, Gilgit, Naran, Skardu, Chitral, Hunza etc at the PTDC Karachi office, then only five per cent used to travel to these places. “Now only five per cent people enquire about these destinations but nobody turns up to proceed,” he said.

However, the domestic tour season has ended with the opening of schools but there are tourists and young couples, who plan their honeymoon at scenic places in the up-country.

He said during August/September last year more than 100 newly-wed couples had gone to various destinations and stayed at the PTDC motels in various parts of the country. “After the Kohlu’s killings there are hardly five per cent couples, who had booked for the PTDC’s honeymoon package,” Riaz said.

From June-September in 2005 – the PTDC South had made a business of Rs7 to 9 million through tour booking, hiring transport, tour packages, and other facilities.

“I think the business will range between Rs2.5 to 3 million in the same period of the current year as people are avoiding visiting earthquake hit areas coupled with uncertain situation after the Kohlu’s tragedy,” he said.

“No foreigner has knocked at the doors of the PTDC office in Karachi for enquiry about places in Sindh and up-country destinations after the Baloch chieftain’s killing last month,” Riaz said.

He said that the number of foreign tourists visiting Northern Areas and other parts of the country had been showing fluctuating trends after the 9/11 incident. However, on many occasions the number of foreigners has increased manifold depending on the satisfactory political situation in the country.



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