Bahrain prepares for tourism return with Saudi Arabia to open causeway and flights

Tourism and hospitality leaders in Bahrain are preparing for a surge of visitors from Saudi Arabia as international borders reopen later this month. They hope to recover huge losses suffered during the pandemic.

Once restrictions are lifted on May 17, officials expect visitor numbers from the kingdom to return to pre-pandemic levels and offer a much needed economic boost.

Figures from the Bahrain Tourism and Exhibitions Authority showed visitor numbers in the first quarter of 2020 were almost half that of the previous year.

Two million tourist nights were recorded, compared with 4.1 million in the same three-month period of 2019.

Many visitors travelled to Bahrain from Saudi Arabia via the King Fahd Causeway, but that was closed on March 8, 2020, because of Covid-19.

We look forward to welcoming our neighbours back to the country

"The reopening of the KSA/Bahrain border is extremely welcome for businesses of all shapes and sizes across Bahrain who consider our connection to Saudi Arabia a strategic artery for ongoing growth," said Sameer Nass, chairman of the Bahrain Chambers of Commerce and Industry (BCCI).

“Our long-standing trade and tourism ties with Saudi Arabia are set to flourish once again in 2021.

"The progress both countries have made towards implementing safety measures against Covid-19 means that we can now look ahead to a time when the causeway will be open on a permanent basis.

“We look forward to welcoming our neighbours back to the country.”

King Fahd Causeway completes preparations to receive travelers between Saudi Arabia and Bahrain. SPA
King Fahd Causeway completes preparations to receive travelers between Saudi Arabia and Bahrain. SPA
King Fahd Causeway completes preparations to receive travelers between Saudi Arabia and Bahrain. SPA
The King Fahd Causeway links Bahrain and Saudi Arabia. It was due to re-open on March 31, but the date has been pushed back to May 17. Getty Images
A satellite view of the King Fahd Causeway. The causeway has been closed since March 8 last year, under restrictions in Bahrain to control the spread of coronavirus. Alamy
Prior to the pandemic, Bahrain welcomed around 11 million tourists a year - with more than 88 per cent arriving across the causeway. Alamy
A view of the causeway from the King Fahd Causeway Observation Tower in Bahrain. Getty Images
The King Fahd Causeway linking Bahrain and Saudi Arabia. This is the view towards Saudi Arabia from the mid-point services area. Alamy
Once travel restrictions are removed, many thousands of visitors are expected to cross into Bahrain and provide a timely boost to its tourism and hospitality sector. Getty Images

As the global pandemic took hold, visitor numbers to Bahrain fell by 92 per cent in March 2020, from 1,154,318 to just 92,046.

Officials hope a rapid bounce-back could mean a $2.9 billion boost to Bahrain’s economy as tourists begin to return to the island state.

Bahrain and Saudi Arabia have long-standing tourism and trade ties.

Trade between the two countries grew 43 per cent during the third quarter of 2020.

The recent announcement made about permanently opening the King Fahad Causeway will strengthen those ties further, it is hoped.

Saudi Arabia will lift the ban on travel for its vaccinated citizens on May 17, allowing movement by land, air and sea.

Vaccinated adults who have received both doses, or one dose 14 days prior to the date of departure, will be allowed to travel, as will all Saudis aged under 18 and those who have recovered from Covid-19 in the past six months.

Saudia airlines on Wednesday issued guidelines for 38 countries for when borders reopen. Bahrain, like other Gulf states, is listed.

Before the pandemic, Bahrain welcomed about 11 million tourists, with about 88 per cent of them arriving across the King Fahd causeway.

“The number of visitors from Saudi Arabia is set to gradually go back to normal levels,” said Dr Ali Al-Moulani, President of the Bahrain Economists Society.

“It is expected to add about $2.9 billion to Bahrain’s economy this year based on average tourist spending in 2019.”

Saudia airlines issues travel guidelines to 38 countries

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21 Lessons for the 21st Century

Yuval Noah Harari, Jonathan Cape

History's medical milestones

1799 - First small pox vaccine administered

1846 - First public demonstration of anaesthesia in surgery

1861 - Louis Pasteur published his germ theory which proved that bacteria caused diseases

1895 - Discovery of x-rays

1923 - Heart valve surgery performed successfully for first time

1928 - Alexander Fleming discovers penicillin

1953 - Structure of DNA discovered

1952 - First organ transplant - a kidney - takes place

1954 - Clinical trials of birth control pill

1979 - MRI, or magnetic resonance imaging, scanned used to diagnose illness and injury.

1998 - The first adult live-donor liver transplant is carried out

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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The specs

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Turkish Ladies

Various artists, Sony Music Turkey

Guns N’ Roses’s last gig before Abu Dhabi was in Hong Kong on November 21. We were there – and here’s what they played, and in what order. You were warned.

It’s So Easy
Mr Brownstone
Chinese Democracy
Welcome to the Jungle
Double Talkin’ Jive
Better
Estranged
Live and Let Die (Wings cover)
Slither (Velvet Revolver cover)
Rocket Queen
You Could Be Mine
Shadow of Your Love
Attitude (Misfits cover)
Civil War
Coma
Love Theme from The Godfather (movie cover)
Sweet Child O’ Mine
Wichita Lineman (Jimmy Webb cover)
Wish You Were Here (instrumental Pink Floyd cover)
November Rain
Black Hole Sun (Soundgarden cover)
Knockin’ on Heaven’s Door (Bob Dylan cover)
Nightrain

Encore:

Patience
Don’t Cry
The Seeker (The Who cover)
Paradise City