BAHRAIN could witness an unprecedented wave of business closures in the salon sector, it has been warned, writes the GDN's Sandeep Singh Grewal.

Salons have been shut down since March 18, along with gyms, fitness studios, cinemas and sheesha cafes, as part of a wide range of measures to combat the spread of Covid-19.

Other non-essential businesses were allowed to reopen for two weeks in April with restrictions such as social distancing and wearing face masks, but salons and gyms remain closed.

Owners of thousands of salons across the country have issued a plea for sufficient financial aid to offset the losses caused by the coronavirus pandemic.

Bahrain Chamber of Commerce and Industry (BCCI) commercial markets committee chairman Abdulhakeem Al Shammary explained that salons have so far benefited from utility bills being shouldered by the government for three months and are set to receive financial aid from Tamkeen.

Today is the last day Tamkeen will accept applications from traders to register for the Business Continuity Support Programme that offers financial support to adversely affected small and micro enterprises.

“Salons fall under this committee and we are aware of their hardships during these times, but the government has transferred salaries of Bahraini staff for three months, and further paid the utility bills until June,” said Mr Al Shammary.

“All businesses are facing challenges and we are aware that Tamkeen has started registering businesses to provide financial aid.”

However, businesswoman Sawsan Al Mai, who owns a chain of salons and previously headed the BCCI’s salons committee, said many entities were bleeding cash in order to sustain operations.

She added that the key challenge was continuing to pay salaries of thousands of expatriate workers who operate in the beauty salon industry.

“The data we have with us show there are 3,156 women’s salons in the country, while the number of men’s salons will be more than double this figure,” she said.

“Majority of the staff employed in these salons are expatriates and we have to pay their salaries and housing accommodations that have been delayed due to this closure.

“Salons were already facing tough competition because there are so many outlets and this was followed by the economic slowdown, and now coronavirus has killed our businesses.

“Even if they open salons now there will be fear among our customers to visit and the nature of the job doesn’t permit social distancing.”

Salon owners have since last year reported major losses due to competition caused by labour mobility, home-based businesses and rise in commercial registration (CR) fees.

Another businessman, Aqeel Abu Idris, who owns seven salons, said many employers have not been able to pay full staff salaries with some asking employees to take unpaid leave.

“Our rents and salaries have to be paid on time and we request Tamkeen to inject funds to help our businesses,” he said.

“The problem is even worse for over 12,000 male salons across the country, with some small shops working for years inside villages.

“Even if we open now how can we adhere to social distancing measures?”

The eligibility criteria to apply for Tamkeen’s Business Continuity Support Programme include a valid CR, audited financial statements and proof that operations have been affected due to Covid-19. Besides, employees have to be registered under the Social Insurance Organisation and should not have Labour Market Regulatory Authority offences.

Businesses that qualify after supplying the required documents will receive funds based on the size of the enterprise, with the grant divided into three monthly instalments.