Bahrain trade apathetic over proposed labour fee hike

Travel agencies in Bahrain are unfazed by news that labour fees for expatriate workers could almost double from next January.

"The fees haven't been passed yet, but if they do, we are going to have to increase volumes of sales, simple as that," said Densil D'Souza, general manager, at Basma Travel. "But Bahrain is booming so we are not worried."

For agencies like Manama Travel Centre (MTC), which has more ex-pats than locals on the payroll, the ruling would have no immediate effect since the company can't employ more ex-pats until they fill their quota of Bahrainis, explained the agency's travel manager, Ismail Haqiqi.

"Travel agents need a 50/50 balance [of ex-pats and Bahrainis] and we are below that target," he said.

Bahrain's Labour Market Regulatory Authority (LMRA) has submitted proposals to increase the current ex-pat labour fee of BHD 192 (US $509.26) for two years' employment to BHD 200 ($530.49), plus a monthly payment of BHD 10 ($26.52) for each ex-pat worker employed.

This amounts to BDH 440 ($1167.08) for the two years.

If the proposals are given the green light by the Bahraini Government's Cabinet, the new fees, which cover work permit, residence permit, and return visa fees, as well as medical check costs, will come into effect from January 1, 2008.

"I don't think it will impact business - even if fees increase, we still need people to come and work for us," said Mohammed Khan, general manager, Oscar Travel and Tours.

The increased fee would represent the second government-imposed levy on Bahrain employers in recent months following the introduction of a 1% tax on all workers that contributes to unemployment benefits.

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