Karachi: Pakistan is yet to face another set back as the Sheraton Hotel would shut down its business the next year, January 2014. It is being said that the deteriorated law and order situation in the country and the announcement by the government to start up operation clean up in the metropole city against the criminal bodies are the prime reasons for such decision.
Unfortunately, the previous government in the past five years had completely failed to maintain peace across the country especially in Karachi, which is the financial hub and the revenue generating city of the country. Being a port city, it remains deprive of enjoying the deserved attention.
Sheraton Hotel is a chain of American hotel chain run by American company, Starwood hotels and and Resorts Worldwide Inc. The Kuwait based owner of Sheraton hotel Karachi, Arabian Sea Enterprises Limited has decided of not renewing its contract with Starwood. Instead, has managed to enter into deal with Movenpick Hotels and Resorts that have their international luxury hotel based in Switzerland.
MA Bawany, Executive Director at Pakistan Services Limited which manages one of the most luxury hotel –Pearl continental expressed his views that being American hotel, Sheraton is likely to face terrorist attack and this might be the reason for switching over to non-American hotel chain. Non-American hotels charge less than $100 per night and hence their recovery margin is less unlike Sheraton which is a royal-branded hotel.
According to the Board of Investment, the foreign investment dropped from $ 5.3 billion in 2007-2008 to $ 1.4 billion in 2012-2013.
Officials say that only 5 % foreign visitors make up the occupance in these royal hotels and after the ‘operation clean-up’ announcement, they have decline to visit Pakistan the following year.
According to the Board of Investment, the foreign investment dropped from $ 5.3 billion in 2007-2008 to $ 1.4 billion in 2012-2013.
Officials say that only 5 % foreign visitors make up the occupance in these royal hotels and after the ‘operation clean-up’ announcement, they have decline to visit Pakistan the following year.
