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Manama suq traders call for help with rents

Manama, April 10, 2011

Manama traders fear they could be forced out of business unless they get immediate help with rents.

Businesses in the Manama suq are among those hit hardest by the political turmoil of recent weeks, with customers avoiding the area altogether and armed gangs attacking their shops.

They have welcomed the government's move on Wednesday to suspend a BD10 tax on each foreign worker companies employ.

However, many say they are still unable to pay their rents after seeing trade in the area come to a standstill following the occupation of the GCC (Pearl) Roundabout in mid-February.

Our sister newspaper Gulf Daily News (GDN) reported last month that some shops resorted to offering 50 per cent discounts and closing down sales in a bid to boost custom.

But the suq became a virtual ghost town as a result of the protests, as well as attacks on Asians in Manama by anti-government factions, meaning some businesses are now unable to pay their rents.

'While everyone is talking about several fees being cut to help us, one of the main issues is the payment of rents,' said one trader, who has two shops in the suq and two near the Manama Central Market.

'We have been facing difficult times for the last two years with the financial crisis and when we were looking at a recovery, the present crisis happened. This has ensured we have virtually no business left now.'

He said businessmen had appealed to building owners to accept delayed rent payments, but the response had been threats of legal action.

'In the last month we have said they (landlords) should allow us some time, but we have been threatened with legal action if we do not pay,' added the trader, who deals in home appliances and readymade garments.

'It is their staff that comes to us and makes the collections and I doubt they ever tell their bosses about our problems. We are sure if the owners were aware, they would take some steps to help us.'

Another trader, who has three shops in the suq and deals in readymade garments, said there were now too many shops for too few people.

'In the last few years, we have been suffering with the advent of the mall culture, but were making ends meet anyway,' he said.

'But this recent disruption has resulted in a lot of problems. There have been days when not a single customer has walked in.

'The rents are an issue and so are the other levies. There is precious little we can do in the face of the threat of legal action. We just pay up when the rent collector comes.'

He said his business in the suq had been going for nearly 40 years, but problems in the traditional shopping district had only surfaced in recent times.

'Only in the last three years or so we have had to suffer so much,' he said.

'First with the financial crisis and now with the political situation in Bahrain.'

Another trader, who deals in readymade garments and clothing accessories, welcomed the decision to suspend the expat tax levied by the Labour Market Regulatory Authority last week.

'We will be happier if certain other levies are also suspended or scrapped and there is a moratorium on rents,' he added.

'Even if the rents are cut in half for a few months, it would be a help.'

The trader said one of the main reasons for the drop in business was the lack of visitors to Bahrain as a result of recent turmoil. 'If people do not come, who will come to our shops?' he asked.

He said restrictions on people crossing the King Fahd Causeway from Saudi Arabia were not helping.

'We are hoping free movement begins soon so we can start to look up as well,' he added.

Bahrain Chamber of Commerce and Industry retail and traditional markets committee head Jawad Al Hawaj admitted traders were facing severe problems from all sides.

'We have received several representations from all sections to help them and we have communicated the concerns to the authorities,' he said. He also acknowledged there were valid concerns over rents.

'We have been taking up several issues with the authorities and this will also be taken up to address traders' concerns,' he said.

Al Hawaj earlier told the GDN the retail industry had suffered a 70 to 80 per cent loss in business at the height of the crisis, adding it was crucial for the situation to return to normal as soon as possible.-TradeArabia News Service




Tags: rents | retail | Shopping | unrest | protests | Manama traders | small businesses |

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