Hoteliers in Bahrain have lost a court fight against government restrictions, which they say have badly damaged their businesses.

The Bahrain Society of Hotels and Restaurant Owners lost its appeal in the High Civil Administration Court against restrictions on live entertainment and sales of alcohol.

The organisation had filed a case against the information ministry's tourism affairs calling for the scrapping of two orders, issued last year.

The first order bans some hotels from recruiting foreign singers and bands and suspends the licences for Arab and foreign entertainment shows. More than 70 hotels are affected by these new restrictions.

Another bans hotels and restaurants in residential areas, near mosques and schools from selling alcohol and opening discos.

Hotels and restaurants affected were earlier notified by letter of the restrictions in November and the society filed an appeal against them in March last year.

The organisation also demanded compensation for the hotels' owners and Bahraini employees affected, claiming that 87 hotels and jobs of 5,000 Bahrainis would be put at risk.

It called for the order to be put on hold until a committee comprising the Bahrain Chamber of Commerce and Industry, Tourism Affairs and the society has been formed to help the transition of hotels and reduce job losses.

It also wanted hotels to be given at least five years to comply so they can adjust and fulfil financial obligations with the banks.

The society claimed that the orders are unlawful and impinge on the rights of hotel owners and their Bahraini employees and foreign investors. It was unclear when the orders would now be implemented.-TradeArabia News Service