DAMMAM, 16 April 2003 — As the war in Iraq reaches an end, business in the Eastern Province is returning to normal. Many sectors that had slowed down are now once again looking vibrant.
The worst-affected during the crisis period was the travel industry as many business travelers as well as holiday-makers postponed their trips.
Although most of the airlines continued their operation, a few stopped operating from Dammam. But now those few, like Lufthansa and KLM, have resumed their operation.
Airlines operating on the South Asian sector also recorded low traffic during the war period. But now they are confirming that traffic flow has improved. “The market has regained confidence,” a travel agent in Dammam told Arab News.
Many airlines say that those who had canceled their reservations at the beginning of the war are now reconfirming their seats. “We hope that in a day or two business will be back to normal,” said the manager of a Gulf airline in Alkhobar.
Airlines are also reporting that some of the expatriates, especially Europeans and Americans, who had left the Kingdom are now returning with their families.
On the investment front, the market has consolidated in the past three days, and healthy trading in Saudi stocks was reported. “Saudi stocks are strong and the market is buoyant,” said Abdul Aziz Al-Huraib, a stockbroker in Dammam.
Sales of consumer items including electronic goods have also improved in the last week, and retailers expect heavy sales next month since many expatriates go on their annual vacation during this time of the year as schools close for the summer vacation.
The rental car business was also adversely affected due to the war, but now car rental companies say that big companies have begun leasing cars again.
The hotel industry and entertainment centers are also reporting a drastic improvement in their business. “The occupancy rate is not as good as we would normally expect, but the trend is healthy,” said the general manager of a five-star hotel.
However, owners of furnished apartments in Dammam and Alkhobar still complain of poor business and say they have to resort to undercutting each other in order to attract business.
