Opening visit visas revives hotel apartment sector
Since the Ministry of Interior opened family and business visit visas in February, after a long hiatus, hotel apartment managers said bookings have increased by 10 -15 %, while rental values have grown by about 10%.
The demand for apartments for the duration of one month has increased compared to long-term ones, coinciding with the increase in Gulf tourists. Mahmoud Al-Ruby, CEO of Sara Plaza and Sara Palace hotels, said that prior to opening visit visas occupancy was 70% for long and short-term reservations, while it reached 85% after opening visit visas, as reported by the Arabic daily Al Rai.
He explained that with the increase in demand, prices have also increased, as the rent for the most popular combinations, one room and a hall is currently at KD 560, and a studio apartment is at KD 350, which represents a growth of approximately 10%. As the weather improves and families return from summer vacations, rents are expected to rise again.
Al-Ruby explained that demand has also increased from companies and hospitals that are working hard to bring in workers with commercial entry visas.
He pointed to the remarkable visitor turnout in the recent period by Saudis, followed by the Bahraini community, then the Qatari, Emirati and Omani communities, explaining that their turnout has returned to pre-Corona levels.
The Director of Public Relations and Marketing at Kuwait Continental Hotels Group, Muhammad Al-Shazly, said that opening family and commercial visit visas revived hotel apartments after they suffered for long periods, especially during the spread of Corona.
Occupancy rates have increased by about 10 percent, noting that the controls governing entry visas, especially commercial ones, prevent the rates from rising, more so with the requirement of an invitation letter from a company in Kuwait and for the visitor to hold a university degree translated into Arabic.
Al-Shazly called for the need to facilitate procedures because many businessmen abroad tried in the past period to enter Kuwait to study business prospects, but they did not have the qualifications that would allow them to obtain a visa or invitation from a local company.
He commented that furnished apartments and subletting have affected hotel apartments, as they have taken a large share of customers, especially since their prices are cheaper.
He further elaborated that prices of a one room and hall range between KD 35-65 per day, while the studio ranges between KD 18-30. Al-Shazly said that easing the controls on visit visas, increasing their duration, and starting large projects are factors that will contribute to a higher demand for hotel apartments and revitalizing this sector that has been suffering for a long time.
Momentum in leasing & subletting
Sources said that many residents who brought their wives and relatives with family visit visas during the past period, searched for the best housing options in terms of price, which increased the momentum of subletting.
It pointed out that some resident landlords re-occupy their apartments during the holiday season, to save on rents while they travel, which provides rental options at a better price.
