The suspension of commercial flights at Kuwait International Airport and the enforcement of precautionary health measures in public places has caused a surge in the prices of reservations to have dinner in some Kuwait hotels for New Year’s Eve to touch relatively new price levels on the market, Al Rai daily reported.
This is due to the increase in pressure from many citizens and expats changing their plans to travel during the New Year to make domestic tourism the only alternative, amid the limited availability of hotel capacity, given that most facilities closed their doors due to the repercussions of the spread of the Coronavirus. The biggest pressure came from the demand for hotels located on the coastal strip, most of which are seeing price hikes, but those prices decreased to lower levels with the lower rating of the hotel.
Sources in the hotel sector revealed that hotels, restaurants and chalets near the coastal area became the first choice for those wishing to spend their New Year vacation, followed by hotels in the interior regions.
The sources emphasized that there is a great demand for New Year’s Eve reservations, as occupancy rates reached 75 percent in some hotels for restaurant reservations and hotel accommodation for a day or two, while occupancy rates for many 5-star restaurants reached 100 per cent.
Dinner reservations in five-star restaurants have reached the level of KD70 dinars per person, while the price in some hotels classified in that category reaches KD35 dinars, and the prices in other restaurants with a lower rating falls to KD8 dinars as the lowest price per person within promotional offers, and in return, prices rise to KD14 dinars in other restaurants.
There are restaurants joining the celebration by providing family offers for a luxurious dinner on New Year’s Eve at promotional prices that reached KD42 dinars for 4 people.
As for New Year’s Eve reservations, the 5-star hotels recorded price levels that reached KD250 dinars for two people in one room, while other hotels are available at gradually lower prices, starting from KD160 to KD175 dinars for two people, reaching KD50 dinars for some hotels in the interior regions, and the prices decrease as the distance between the hotel from the Gulf coast increases and also dependent on its classification.
Prices are subject to market data from supply and demand factors
The president of the Hotel Federation, Ghazi Al-Nafisi, said that the significant increase in the prices of reservations of some hotels and restaurants rated 5 stars during the New Year, is not surprising, as those prices are ultimately subject to market data dependent on supply and demand factors.
Al-Nafisi confirmed that the Coronavirus crisis and its consequences have prompted more than 50 percent of Kuwait’s hotels and facilities operating in the same sector to close their doors so far, which has decreased the presence of hotel rooms and other restaurant services.
He added, “This comes in light of an increase in demand for reservations after the suspension of flights at Kuwait International Airport, which prompted many citizens and expats to change their travel plans during New Year’s Eve and celebrate in Kuwait, which stimulated demand to cause an increase in rates relatively from previous years.”
He explained that with the decline in supply and the increase in demand, prices have risen to such levels, especially since there are no restrictions on the pricing policies for hotels, which are subject to the level of each individual hotel and the services it provides that can be estimated the costs.”
He pointed out that what also contributed to rising prices was the application of social distancing rules in public places, which naturally reduced seat capacity inside restaurants and raised price levels.