Capital’s Hospitality industry under stress of risk & hope

ISLAMABAD, May 3 (APP):The capital’s hospitality industry‘s growth moves at snail’s pace since 2015 despite massive increase in population
and significant improvement in the country’s overall security situation.
The imposition of specific taxes, involvement of huge investment due to hike in commercial property’s tax
and CDA’s crackdown against those facilities established in the residential areas, are seemingly major reasons
for the sluggishness of this industry.
An official from Disaster Management Authority (DMA), requesting anonymity said that the business of
restaurants and hotels in Islamabad was on boom up-till 2015 as some 710 hotels were established since
Islamabad’s inception as capital of the country. In 2016, some thirty five more facilities were introduced
taking the number to 745, he added.
He said now there were 800 registered hotels in Islamabad among them 61 are foreign-brand restaurants,
making impressive contribution to the economy.
He said these were still insufficient for a population of some 1,014,825 in urban areas.
Najam saqib, running Baba hotel at Aabpara for the last 17 years said it was a tough task to run a hotel
or restaurant as it bore much expenses including shop’s rent, heavy utility bills, quality chef and entertaining
staff.
“Some years ago, majority of the settlers especially come from Murree opt for this business but now they
are leaving this business and looking for some other viable options”, he added.
He informed that just two or three new restaurants have opened up in this area in the last two years “which
shows the business is no more attractive to be taken afresh.”
“There are no incentives offered for the hotel industry like interest-free loan, exemption of taxes for some
certain period from start and availability of land at affordable rates.”
A manager of city’s one of the popular hotel requesting anonymity said due to unauthorized marriage halls
and marquees their business was badly affected and events and conferences were now their major earnings.
He demanded for competitive environment to ensure more investment in the sector and some specific
incentives to help this industry contribute to national economy.