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Resorts reeling under pandemic woes
Mahmudul Hasan
It is natural to assume that whenever disasters strike, a country’s hospitality industry is usually the first to feel its effects but is the last to recover, since expenses here are deemed non-essential.
True to that tune, the Covid-19 fallout has left Bangladesh’s hospitality sector grappling for survival over the past six months even though the cogs of the economy have started to turn again.
Although most people are back on the streets as the economy is slowly returning to normalcy, empty hotel rooms, deserted resorts and a sharp decline in both international and domestic travel have left the sector in a position from which recovery remains unforeseeable.
As a result, the hotels and resorts located in the north-eastern division of Sylhet are suffering from capital shortages.
“Our business has been severely affected by the pandemic,” said Arifur Rahman, managing director of The Palace Luxury Resort.
The resort, located in a remote village in Habiganj district, was shut down for more than four months due to the coronavirus pandemic as people opted to stay at home rather than risk infection.
Its doors were finally reopened in early August with consent from the authorities and now the average occupancy rate stands at just 20 per cent compared to 56 per cent in the pre-pandemic time.
“People are bored staying at home for a long time and are now coming out but the pace is slow because they are still cautious,” Rahman said.
Built on 150 acres of land, the resort boasts 100 rooms and 32 villas and employs about 390 people. It is one of the largest retreats in the country as is famous for being at the heart of breathtaking natural beauty.
However, the size of the operation and its location has cost it dearly amid the pandemic.
On the other hand, the owners of hotels and resorts located in the city can close down their business for certain periods of time without additional anxiety as most of their operations can be maintained with minimal efforts.
“But, to take care of a vast area like The Palace, a big workforce is needed,” the managing director said.
If not maintained regularly, the entire area becomes a jungle of bushes and shrubs. Besides, various wildlife such as monkeys begin to wreak havoc on the resort when the place lacks human presence.
As a result, maintenance costs have gone up a lot, he added.
Buoyed by a renewed interest from the country’s bourgeoning middle-class to holiday at Habiganj, Moulvibazar and Sunamganj where dozens of tourist spots are located, the resort business got a shot in the arm as more than a dozen such establishments have been built across these locations in less than a decade
Most of these establishments were developed using bank loans and this made paying the associated monthly instalments amid the shutdown one of the biggest worries for hotel owners.
However, the situation is improving day by day and provided guests follow the health guidelines while vacationing, everything is expected to change for the better.
“Many companies used to organise their annual conferences outside the country. But this year, air travel got costlier and so, if they decide to arrange their conferences in the country, we would be benefitted,” Rahman
said.
Shuktara Nature Retreat, a resort sitting on three acres of land in Sylhet’s Khadimnagar, has been able to rent out an average of 5 to 7 rooms out of a total 24 per day since it reopened in early August.
“Although business is bad, the good news is that many people are now making inquiries about the safety measures at the resort. We assure them that we follow the Covid-19 health guidelines properly,” MH Murad, managing director of Shuktara, told The Daily Star.
During its four-month halt to services, Shuktara, which has 45 staff members, lost revenue of over Tk 70 lakh.
“It has been a tough time. We had to pay the salary of staff members despite having no income,” Murad said, adding that they paid off 14 lakh of their bank loan during the same period.
The managing director also said he was not pleased with the government’s stimulus packages.
“If we apply for a loan of Tk 20 lakh from the packages, they want to give Tk 3 lakh. Much like giving something to a beggar. But, we, the private sector, pay the government all the VAT and taxes,” he said.
Murad appealed to the government to provide loan facilities at simple interest and a few years’ grace period so that they can survive the Covid-19 fallout.
Meanwhile, the Grand Sultan Tea Resort & Golf, an upscale resort in Sreemangal of Moulvibazar, is yet to reopen since shutting down in late March.
“We have been evaluating the pandemic situation. If guests do not come after opening, there will be more losses,” said Arman Khan, assistant general manager of the Grand Sultan.
The resort, which is built on 13.3 acres of land and currently employs about 400 people, has been incurring losses since February.
“For fear of the coronavirus, many events were cancelled in February and March,” said an official of the resort.
Business at the DuSai Resort & Spa in Giashnagar in Moulvbazar though seems to be faring comparatively better as its average daily occupancy rate reached 33 per cent in August.
“We reopened our resort after Eid and since then, the presence of guests has been increasing day by day. This month’s occupancy rate will exceed 35 per cent,” said Kawser Lincoln Arefin, managing director of the resort based on 15 acres of land.
However, only 65 rooms have been opened at the 90-room resort in order to maintain social distancing rules.
Hotels and resorts located in the north-eastern division of Sylhet are suffering from capital shortages as their occupancy rates have flatlined at the lowest possible levels.
photo: COLLECTED