Fujairah hotels Cyclone Gonu losses

[sharewadi]

Something for the insurance companies in the UAE. It doesn't actually sound like a significant amount depending on how many and which insurance companies are involved. No doubt they'll find some way to try to avoid payouts...

Emirates Today 15 June 2007:

Fujairah hotels peg Gonu losses at Dh12 million GEORGE FAHIM BUSINESS REPORTER Six Fujairah hotels have sustained losses pegged at more than Dh12 million as a result of Cyclone Gonu, senior executive said. They said they are currently involved in consultations with insurance companies to agree on the volume of compensation. Hotels expect negotiations with insurers to be difficult, especially on the aspects of whether losses incurred as a result of natural disasters and the ensuing loss of business are covered. The hotels have also asked the government to quickly repair roads that provide access to the hotels after they were damaged by cyclone water. Patrick Antaki, general manager of Le Meridien Al Aqah, said his hotel suffered a loss of Dh8 million. He said things are back to normal with 60 per cent occupancy. The rate is expected to rise over the coming weeks. When Gonu struck on June 5, waves reached a height of five metres and Le Meridien’s guests had to be moved to other hotels, Antaki said. The hotel waived all fees on cancellation of reservations in the wake of the cyclone. Managers at the Rotana said damage to the hotel was concentrated in some rooms, while a lot of windows and doors were broken. The hotel is also negotiating with its insurers on compensation. Rotana now has an occupation rate of 50 per cent, which is expected to rise over the coming days. Losses at the Oceanic exceeded Dh1.5m, sales and marketing manager Nasser Nassif said. Cyclone Gonu destroyed the hotel’s gardens, tennis courts and diving centre. Falling trees wreaked havoc on the furniture that Oceanic spreads on its beach for its guests, Nassif said. He expects the occupancy rate to climb during the weekends of the summer months to 60 or 70 per cent. Joseph Abu Dib, general manager at the Sandy Beach Hotel pegs damage in the range of Dh2.5m to Dh3m. Loss of business would be over and above that, he said. Abu Dib said the sea waters devoured more than 80 sunshades imported from South Africa at a cost of some Dh2,800 each.

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