The service sector seems to be doing well in Pakistan.
BY MUZAFFAR RIZVI
LAHORE- With the sale of Falleti’s, hotel industry in Lahore is likely to get a kick start in near future in the wake of growing relations with India and increasing international air-traffic, as well as arrival of foreign delegations, investors and tourists in post September 11 scenario.
The City is expected to attract an investment of over Rs 25 billion including a foreign component of $300 million approximately in the hotel industry over a period of five years. As many as five new five-star hotels are likely to make the city more graceful while the existing units have also chalk out plans to launch expansion projects during next couple of years.
At least three reputed names in international hotel industry are keen to step in Pakistani market and establish their branches in Metropolitan Lahore in view of its growing importance in the region following India-Pakistan peace initiatives and increasing rush of tourists, investors and air-liners staff after lifting of sanctions over use of air space by India and Pakistan.
The Arab investors, that made Rs1.21 billion successful bid for Falleti’s
through M/s 4-B Marketing, have expressed their willingness to build a quality and modern hotel building in next three years. Similarly, international hotels like Hayat Regency, Sheraton, Sareena and Oberoi have also prepared plans to establish their branches in the city and are currently busy in looking for the best suitable sites. It is learnt that the international chain of hotels is willing to build hotels either on The Mall or in Cantt area especially on other side of Lahore canal, which passes through the city; however the availability of suitable piece of land has become a big question mark in this regard. Though, the Punjab Government is keen to provide necessary facilities to the investors interested in investing in hotel industry only small land holdings on prime locations are available. This situation does not suit to the hotel giants of international repute.
Among the local stakeholders, Pearl Continental has already announced launching of mega new deluxe 40-storey six-star hotel building at an approximate cost of $50 million within next two years. The new building having 600 rooms would be built adjacent to the existing Pearl Continental building on The Mall.
Holiday Inn and Ambassador hotels have also plans on cards to launch expansion projects in the near future. This would certainly bring billions of rupees investment into the hotel industry in Lahore. Terming it business secret, both these hotels are not ready to disclose the details of their expansion plans and new projects. However, sources concerned informed the scribe that Holiday Inn has a plan to build 80-room new executive suite of international standards while Ambassador hotel is planing to add another floor during next two to three years.
Only Avari Lahore currently has not prepared any plan in this regard. It is neither going to launch new project nor will it expand the existing building; however the management will start renovation of the hotel in July this year.
People engaged in hotel business maintain that stable political situation, improving ties with neighbouring India, increasing international air-traffic and surging tourists’ arrival gave a boom to the hotel industry.
They admitted growth in the industry and said the city genuinely needs new hotels in order to accommodate foreign delegations and tourists increasing day by day since the Pakistan and India restored cricket ties March this year.
However, they made it clear that growth in the hotel industry is associated with stable economic conditions and overall situation in the country on political front as well as on international geo-political ups and downs. Things may go in jeopardy order in case any big change on international politics or any incident like Sept 11 occurred, they maintained.
It is also pertinent to note that share of corporate sector in hotel occupancy is on constant decline in major city hotels even though international traffic has improved due to frequent visits of travellers, foreign investors and tourists with the improvement of overall conditions in the country.
Talking to The Nation, General Manager Holiday Inn Nadeem Qadir said growth in hotel industry is need of the hour as the city needs more quality hotels and tourist resorts in order to welcome the growing number of visitors, foreign investors, multinational companies and foreign delegations.
He said the industry has the capability to sustain the growth as the city direly needs couple of good hotels of international repute in the fast changing scenario. He said improving ties with India is the only one factor due to which industry gets boom_there are however some other factors like tourism, new airport terminal, economic growth, etc. that really contribute and attract the international hotel chain to come and invest in the business.
He said the government should give full support to the industry and promote tourism in the country to attract maximum number of people in the country. He also urged the government to resolve genuine problems of hotel industry enabling it compete in the challenging atmosphere in days to come.
http://www.nation.com.pk/daily/july-2004/1/national/lhr1.asp