BizBahrain May-June 2017

OBG | Business Report
Bahrain Checking in
for Tourism Growth
Oxford Business Group (OBG)
A
rising tide of investments and
solid increases in arrivals are
supporting high levels of growth
in Bahrain’s tourism industry, with
projections that expansion will be
sustained to the end of the decade and
beyond.
Tourism has become one of
the main draws for foreign direct
investment (FDI) in the Bahraini
economy, attracting 75% of the $281m of
inbound investments recorded last year,
according to data issued by the Bahrain
Economic Development Board (EDB) in
mid-February.
By contrast, the manufacturing and
logistics sectors drew a combined 14.3%
of the total, while financial services -
traditionally one of Bahrain’s strongest
industries - made up 9.3%.
Total FDI inflows for 2016 were
almost double the $142m posted the
previous year, with 40 companies
making investments throughout the
year, up on 22 firms in 2015.
Tourism investment is set to
rise further this year, with the EDB
forecasting total FDI to the sector will
exceed $300m, rising to $500m or more
in the next few years.
The EDB has identified tourism,
along with manufacturing, ICT,
financial services and logistics,
as being the five sectors that will
underpin growth and development in
the coming years, as well as being the
most likely to attract FDI.
Earnings, footfall set to jump
Some investments in the
tourism sector are flowing into the
accommodation segment, with several
new top-line hotels set to open over
the course of 2017, adding to the 111
registered hotels currently in operation.
42 May-June 2017