Financial Information

OVERVIEW
REPORT OF THE BOARD OF DIRECTORS TO THE SHAREHOLDERS
for the year ended 31 December 2009

The Board of Directors is pleased to present the 31st Annual Report of Bahrain Tourism Company since the incorporation of the company, reviewing the activities and the results of the company for the financial year ended December 31, 2009.

Ongoing financial crisis had an adverse impact on Hotel and Travel Business throughout the year 2009. Our conservative approach helped us reduce this impact on the Business considerably. Due to this, the result of Bahrain Tourism for the year 2009 showed percentage decline by 25% compared to previous year on the group income. The result of Crowne Plaza Bahrain which is owned by Bahrain Tourism Company showed a decrease in sales by 17%. However profit from the Investment Activities increased by 1.2% compared to last year.

The company continues to add a number of Hotel facilities to keep pace with the requirements of businessmen guests and users of the hotel. During the year, ‘Spices’ Indian Restaurant opened which showed good success from day one. With the renovation of health club, a class facility for physical fitness was opened for Hotel Guests and membership to the general public. Construction of multi-storey car park already started which will give an edge with more parking facilities to our customers.

Net profit of the company in 2009 amounts to BD 3,159,643 as compared to BD 4,233,475 in 2008, a decrease of BD 1,073,832 (25%).

The equity of shareholders increased by 6.2% to BD 28,098,511.

The Board of Directors is pleased to propose for the approval of shareholders, the following appropriations.

BAHRAINI DINAR
Cash Dividend ( 20 percent) 1,313,453
Directors remuneration 64,000
Donations to charity 15,000
Retained earnings after appropriations 9,100,857

The Board of Directors would like to express its deep gratitude and sincere appreciation to His Majesty King Hamad Bin Isa Al Khalifa, King of the Kingdom of Bahrain, to HRH Prince Khalifa Bin Salman Al Khalifa, the Prime Minister and to HRH Prince Salman Bin Hamad Al Khalifa, the Crown Prince and Deputy Supreme Commander of the Bahrain Defence Force, and to the Ministers of the Kingdom of Bahrain for their continuing support and encouragement.

We also wish to reiterate our gratitude and appreciation to our respected clients for their support and finally, we are pleased to convey our appreciation and thanks to the company’s Chief Executive Officer and all employees for their sincere efforts towards developing the business of the Company.

Qassim Mohamed Yousif Fakhroo
Chairman

Date: 23 February 2010